Abstract

This systematic literature review synthesizes evidence from studies published between 2011 and 2025, focusing on the interaction between transformational leadership (TL), digital transformation (DT), and employee behaviour. The review reveals that TL plays a crucial role in guiding organizations through the complex DT process by fostering vision, trust, and adaptability. Transformational leaders promote psychological empowerment, innovation, and proactive employee behaviour, thereby reducing resistance to technological change. Empirical findings indicate that TL enhances digital agility and engagement by aligning individual motivation with organizational digital goals. In addition, DT acts as both a driver and a mediator, turning leadership effectiveness into higher employee engagement, creativity, and sustained job performance. Studies in Asia, Europe, and the Middle East show that TL fosters a digital culture characterized by continuous learning, collaboration, and resilience amid technological turbulence. This review concludes that transformational leadership and digital transformation are mutually reinforcing forces. Leadership enables the adoption of human-cantered technology, while digital transformation enhances leadership influence through data-driven empowerment and participatory work design.