1 

 

 

Leadership during Digital Transformation in the South African Banking Sector  

 

Zane J Mahadeo  

1770474  

zanemahadeo@gmail.com;  

072 383 0317 

A research study submitted to the Faculty of Commerce, Law and Management, 

University of the Witwatersrand, in partial fulfilment of the requirements for the 

degree of Master of Business Administration 

 

Johannesburg, 2024 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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ABSTRACT 

This paper investigated the pivotal role of leadership in the context of digital 

transformation within the South African (SA) banking sector. The study delved into the 

various leadership styles, competencies, and practices adopted by banking leaders to 

propel digital transformation initiatives. As part of this research, qualitative research 

methods, were applied which included in-depth interviews with senior leaders in the SA 

banking sector. Through their perceptions and experiences the research sought to 

uncover critical leadership practices, including the identification of the most suitable 

leadership styles, the cultivation of a digital culture, and the implementation of effective 

change management strategies. Moreover, the paper aims to identify the current 

challenges faced by leaders in navigating the digital transformation landscape. This 

research will contribute to the existing body of knowledge on leadership during digital 

transformation in the SA banking sector. It will also enable organisation to harness the 

full potential of digital advancements and implement competitive strategies to succeed 

in the ever-evolving banking industry. 



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KEYWORDS 

Digital Transformation 

Leadership  

South African Banking Sector 

 

 

 

 

 

 

 

 

 



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DECLARATION 

I declare that this research project is that of my own work. It is submitted in fulfilment of 

the requirements for the degree in Master of Business Administration at the 

Witwatersrand Business School. It has not been submitted to before to any University 

for degree or examination.  

 

………………………………… 

Zane Jonathan Mahadeo  

Date: February 2024  

 

 

 

 

 

 

 

 

 

 

 

 

 



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ACKNOWLEDGEMENTS 

I would like to extend my sincere gratitude to the following individuals and groups for 

their invaluable contributions in assisting me in completing this study: 

• I extend my deepest gratitude to Dr. Nomusa Mazonde, my supervisor, for the 

unwavering support and guidance provided throughout the entirety of this research 

journey. Words cannot express my appreciation. 

• Heartfelt thanks go to my wife Amanda and children Zayden and Alexis for their 

constant support, love, motivation, and above all, their patience in adapting to the 

changes I made to our "life" during this transformative journey. I am forever grateful! 

• A special acknowledgment to my sisters Geraldeen and Melissa and parents 

Ramesh and Feroza for their continuous encouragement and guidance during my 

lowest moments. Especially Melissa for constantly reminding me of my due date. 

• I express my sincere thanks to my organisation and the leaders who willingly assisted 

me in this research, actively participating in interviews. Your collaboration is truly 

valued. 

• To my exceptional team, your support and understanding, especially during my 

absence, have been invaluable. I cannot thank you enough. 

• I want to acknowledge and express my gratitude to the leaders who granted me this 

opportunity, Martin Makuva and Colin Makgoba. Your leadership is truly appreciated, 

and I salute you both! 

• Thanks to my friends, family, and colleagues for standing by me throughout this 

transformative journey. 

• Lastly, a heartfelt appreciation to the amazing MBA Block Release Cohort of 2022. 

Each one of you has played a significant role, and I am genuinely thankful for the 

friendships and relationships formed during this remarkable journey. These 

connections are ones I will cherish forever. 

 

 

 

 



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CONTENTS 

ABSTRACT ................................................................................................................. 2 

KEYWORDS ................................................................................................................ 3 

DECLARATION ........................................................................................................... 4 

ACKNOWLEDGEMENTS ............................................................................................ 5 

LIST OF TABLES ...................................................................................................... 11 

LIST OF FIGURES ..................................................................................................... 12 

LIST OF ACRONYMS ................................................................................................ 13 

CHAPTER 1. INTRODUCTION ......................................................................... 14 

1.1 STATEMENT OF PURPOSE ............................................................................. 14 

1.2 BACKGROUND OF THE STUDY ...................................................................... 14 

1.3 RESEARCH PROBLEM .................................................................................... 15 

1.4 RESEARCH QUESTIONS ................................................................................. 17 

1.5 RATIONALE ...................................................................................................... 17 

1.6 DELIMITATIONS OF THE STUDY .................................................................... 18 

1.7 DEFINITION OF TERMS ................................................................................... 19 

1.8 ASSUMPTIONS ................................................................................................ 20 

1.9 CHAPTER OUTLINE ......................................................................................... 20 

CHAPTER 2. LITERATURE REVIEW AND THEORETICAL FRAMEWORK
 22 

2.1 BACKGROUND OF DISCUSSION .................................................................... 22 

2.2 INTRODUCTION ............................................................................................... 22 

2.2.1 LEADERSHIP COMPETENCIES, GAPS, AND THE IMPACT OF DIGITAL 

TRANSFORMATION IN THE SA BANKING SECTOR ................................................. 23 

2.2.2 DIGITAL TRANSFORMATION IN THE BANKING SECTOR: OPPORTUNITIES 

AND CHALLENGES .................................................................................................... 25 



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2.3 SPECIFIC COMPETENCIES REQUIRED FOR EFFECTIVE LEADERSHIP 

DURING DIGITAL TRANSFORMATION ..................................................................... 26 

2.3.1 COMPETENCIES FOR EFFECTIVE LEADERSHIP DURING DIGITAL 

TRANSFORMATION ................................................................................................... 27 

2.3.2 BARRIERS TO DIGITAL TRANSFORMATION IN THE BANKING INDUSTRY: 

A MANAGERIAL PERSPECTIVE ................................................................................ 27 

2.3.3 GAPS IN LEADERSHIP COMPETENCIES ..................................................... 28 

2.3.4 ORGANISATIONAL CULTURE ...................................................................... 28 

2.3.5 ETHICAL LEADERSHIP CHALLENGES DURING DIGITAL 

TRANSFORMATION ................................................................................................... 29 

2.4 LEADERSHIP STYLE AND THE SUCCESS OF DIGITAL TRANSFORMATION IN 

THE SA BANKING SECTOR ...................................................................................... 30 

2.4.1 TRANSFORMATIONAL LEADERSHIP .......................................................... 30 

2.4.2 PARTICIPATIVE LEADERSHIP ..................................................................... 30 

2.4.3 SERVANT LEADERSHIP ............................................................................... 31 

2.5 BEST PRACTICES FOR LEADING EMPLOYEES THROUGH DIGITAL 

TRANSFORMATION .................................................................................................. 32 

2.5.1 CLEAR COMMUNICATION AND VISION ........................................................... 32 

2.5.2 EMPLOYEE EMPOWERMENT AND SKILL DEVELOPMENT ............................ 32 

2.5.3 CHANGE MANAGEMENT AND SUPPORT ........................................................ 33 

2.6 THEORETICAL FOUNDATIONS OF LEADERSHIP AND DIGITAL 

TRANSFORMATION .................................................................................................. 34 

2.6.1 DIGITAL TRANSFORMATION IMPACT ............................................................. 34 

2.6.2 EMPIRICAL EVIDENCE ..................................................................................... 37 

2.7 PROPOSITIONS ................................................................................................... 38 

2.8 CONCLUSION OF LITERATURE REVIEW ........................................................... 39 

CHAPTER 3. RESEARCH METHODOLOGY ................................................... 41 

3.1 INTRODUCTION ............................................................................................... 41 

3.2 RESEARCH APPROACH ................................................................................. 41 

3.3 RESEARCH PARADIGM .................................................................................. 41 

3.4 RESEARCH DESIGN AND DATA COLLECTION METHODS ........................... 42 

3.4.1 RESEARCH DESIGN ..................................................................................... 42 

3.4.2 METHODOLOGICAL ADVANTAGES ............................................................. 42 



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3.5 DATA COLLECTION METHODS ...................................................................... 43 

3.5.1 SEMI-STRUCTURED INTERVIEWS .............................................................. 43 

3.6 POPULATION AND SAMPLING ....................................................................... 44 

3.6.1 POPULATION ................................................................................................ 44 

3.6.2 UNIT OF ANALYSIS AND LEVEL OF ANALYSIS ........................................... 44 

3.6.3 SAMPLING METHOD, SAMPLING FRAME, AND SIZE .................................. 44 

3.7 MEASUREMENT INSTRUMENT ....................................................................... 44 

3.8 PROCEDURE FOR DATA COLLECTION ......................................................... 45 

3.9 DATA ANALYSIS APPROACH AND INTERPRETATION ................................. 46 

3.10 LIMITATIONS OF THE STUDY ...................................................................... 46 

3.11 QUALITY ASSURANCE ................................................................................ 47 

3.12 ETHICAL CONSIDERATIONS ....................................................................... 48 

CHAPTER 4. FINDINGS ................................................................................... 49 

4.1 INTRODUCTION ............................................................................................... 49 

4.2 SAMPLE USED FOR DATA ANALYSIS ........................................................... 49 

4.3 TRUSTWORTHINESS....................................................................................... 50 

4.3.1 DATA COLLECTION CONSISTENCY ............................................................ 51 

4.3.2 ENHANCING TRUSTWORTHINESS OF INSTRUMENTS ............................. 51 

4.3.3 ETHICAL CONDUCT AND TRUSTWORTHINESS ......................................... 51 

4.4 DESCRIPTIONS OF THE SAMPLE ................................................................... 51 

4.5 LEADERSHIP STYLE - INSPIRING TECHNOLOGICAL ADAPTATION ........... 53 

4.6 BEST PRACTICES - TRANSFORMATIVE LEADERSHIP AND EMPLOYEE 

ENGAGEMENT........................................................................................................... 55 

4.7 LEADERSHIP'S ROLE IN DRIVING DIGITAL TRANSFORMATION ................. 56 

4.8 LEADERSHIP COMPETENCIES FOR ADDRESSING GAPS ........................... 57 

4.9 CONCLUSION .................................................................................................. 58 

CHAPTER 5. DISCUSSION OF RESULTS ....................................................... 60 

5.1 INTRODUCTION ............................................................................................... 60 

5.2 LEADERSHIP STYLE - INSPIRING TECHNOLOGICAL ADAPTATION ........... 60 

5.3 BEST PRACTICES - TRANSFORMATIVE LEADERSHIP AND EMPLOYEE 

ENGAGEMENT........................................................................................................... 63 

5.4 LEADERSHIP'S ROLE IN DRIVING DIGITAL TRANSFORMATION ................. 64 



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5.5 LEADERSHIP COMPETENCIES FOR ADDRESSING GAPS ........................... 66 

5.6 ALIGNING LEADERSHIP PERSPECTIVES WITH FINDINGS .......................... 67 

5.6.1 LEADERSHIP STYLES - INSPIRING TECHNOLOGICAL ADAPTATION ....... 67 

5.6.2 BEST PRACTICES - TRANSFORMATIVE LEADERSHIP AND EMPLOYEE 

ENGAGEMENT ........................................................................................................... 68 

5.6.3 LEADERSHIP'S ROLE IN DRIVING DIGITAL TRANSFORMATION ............... 69 

5.6.4 LEADERSHIP COMPETENCIES FOR ADDRESSING GAPS ......................... 70 

5.7 SYNTHESIS OF LEADERSHIP DYNAMICS ..................................................... 71 

5.8 CONCLUSION .................................................................................................. 72 

CHAPTER 6. CONCLUSION AND RECOMMENDATIONS .............................. 75 

6.1 CONCLUSIONS ................................................................................................ 75 

6.1.1 CONCLUSIONS REGARDING RESEARCH QUESTION 1 – LEADERSHIP 

COMPETENCIES ........................................................................................................ 75 

6.1.2 CONCLUSIONS REGARDING RESEARCH QUESTION 2 – LEADERSHIP 

STYLES ...................................................................................................................... 77 

6.1.3 CONCLUSIONS REGARDING RESEARCH QUESTION 3 – BEST 

PRACTICES ................................................................................................................ 78 

6.1.4 CONCLUSIONS REGARDING RESEARCH QUESTION 4 – ROLE OF 

LEADERSHIP ............................................................................................................. 79 

6.2 RECOMMENDATIONS ..................................................................................... 80 

6.2.1 RECOMMENDATIONS FOR EXECUTIVES AND MANAGERS ...................... 80 

6.2.2 RECOMMENDATIONS FOR PRACTITIONERS AND INNOVATORS ............ 81 

6.2.3 RECOMMENDATIONS FOR ACADEMICS AND RESEARCHERS ................ 82 

6.3 SUGGESTIONS FOR FURTHER RESEARCH .................................................. 83 

6.3.1 CROSS-CULTURAL LEADERSHIP DYNAMICS ............................................ 83 

6.3.2 IMPACT OF LEADERSHIP ON EMPLOYEE WELL-BEING ............................ 83 

6.3.3 QUANTITATIVE ANALYSIS OF LEADERSHIP STYLES ................................ 83 

6.3.4 INTEGRATION OF EMERGING TECHNOLOGIES ........................................ 84 



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REFERENCES ........................................................................................................... 85 

APPENDIX A ........................................................................................................... 102 

APPENDIX B – Fifteen synthesises articles from literature. ............................... 103 

APPENDIX C – PARTICIPANT REQUEST FORM .................................................. 104 

APPENDIX D – Research Instrument .................................................................... 106 

APPENDIX E ........................................................................................................... 109 

 

 



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LIST OF TABLES 

Table 1 - Synthesis of the findings from the fifteen papers analysed ........................ 102 

Table 2 - Questions and propositions ......................................................................... 34 

Table 3 - Consistency table: research questions, propositions, data collection and data 

analysis …………………………………………………………………………………….. 107 

Table 4 - Summary of Interviews……………………………………………………………48 

Table 5 - Comparison of Literature Review and Findings………………………………..71 

 

 



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LIST OF FIGURES 

FIGURE 1: VISUAL ILLUSTRATION INTEGRATED TAM AND TLT .......................... 34 

FIGURE 2: DISPLAY OF SA BANKING STAT INCREASE IN 

DIGITISATION……………………………………………………………………………….100 

FIGURE 3 - GENDER OF RESPONDENTS ................................................................ 49 

 

FIGURE 4 - LENGTH OF SERVICE IN SENIOR LEADERSHIP ROLE ........................ 50 

 

FIGURE 4 - AGE RESPONDENTS .............................................................................. 51 

 

  

 



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LIST OF ACRONYMS 

AI –  Artificial Intelligence 

C Suite Leaders -  executives that run a given organization (eg. Chief Executives, Chief 

Information Officers etc._ 

IOT –  Internet of Things  

DT-  Digital Transformation 

4IR –  Fourth Industrial Revolution 

FNB –  First National Bank  

HR –  Human Resources 

PWC –  PricewaterhouseCoopers  

SA –  South Africa  

WEF –  World Economic Forum 



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CHAPTER 1. INTRODUCTION 

 

1.1 STATEMENT OF PURPOSE 

This qualitative study aims to explore how leadership in the South African (SA) banking 

sector is being transformed by the ongoing process of digitisation. 

 

1.2 BACKGROUND OF THE STUDY 

The SA banking sector, a cornerstone of the country's economy, offers diverse financial 

services to individuals and businesses (Financial Stability Review, 2021). In recent years 

we have witnessed rapid transformative changes driven by technological advancements 

and evolving customer expectations (Pricewaterhouse Coopers, 2018) with Digital 

Transformation (DT) emerging as a significant disruptor (Diener & Spacek, 2021). 

 

DT involves the integration of digital technologies into all aspects of organisational 

operations, culture, and strategy to enhance efficiency, productivity, and customer 

satisfaction (Tiekam, 2019). The sector has experienced a substantial surge in 

digitisation, marked by a 10.9% increase in digitally active customers in the second half 

of 2021 compared to the first half (PwC, 2022). This shift underscored the imperative for 

effective leadership to ensure the success of digital transformation (Tiekam, 2019). 

Leaders play a vital role in shaping organisational culture, instilling values, and driving 

success (Larson & DeChurch, 2020). Effective leadership is paramount for fostering a 

culture of customer focus, innovation, and ethical behaviour, ultimately driving business 

growth (Tiekam, 2019). Studies highlight that leaders are instrumental in building agile 

and adaptable organisations capable of responding to changing customer needs, market 

conditions, and technological evolution (Larson & DeChurch, 2020), making leadership 

a critical factor for success in the SA banking sector (PwC, 2018). 

 

Research indicates that DT poses challenges for leaders, including change 

management, fostering innovation, and upskilling employees to meet the demands of an 

evolving market (Larson & DeChurch, 2020). Understanding these challenges is crucial 

for exploring leadership strategies and styles that lead to success in the digital 

transformation journey. 

 



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While ample research exists on the general role of leadership in DT, specific research is 

limited for the banking sector in SA. PwC (2018) emphasises the need for digital 

transformation in the SA banking sector in response to shifting customer expectations 

and technological advancements. The ongoing evolution of technology, highlighted by 

Diener and Spacek (2021), further solidifies the critical role of leadership in ensuring 

successful digital transformation. 

 

This research paper delves into the role of leadership in the SA banking sector, 

examining leadership styles, and identifying key factors influencing leadership. The study 

aims to contribute valuable insights to the existing knowledge on leadership's role and 

provide guidance for banks undergoing digital transformation (Larson & DeChurch, 

2020). 

 

1.3 RESEARCH PROBLEM 

Digital transformation has presented an ongoing challenge for the banking industry, 

necessitating digitisation and technological improvement (Tiekam, 2019; First National 

Bank, 2016). This rapid technological evolution has impacted various facets of the 

banking sector, demanding a shift in leadership strategies and styles for successful 

navigation (FNB, 2016; Diener & Spacek, 2021). The efficacy of leadership has proven 

crucial in navigating digital transformation successfully (Benmira, 2021; Baird & Wang, 

2020). Leaders in the banking sector must possess the abilities and skills to drive 

profitability, comprehend the consequences of digital transformation, and embrace 

diverse modes of thinking (Kekwaletswe et al., 2020). 

While transformational and servant leadership styles are common, they alone are 

insufficient to address the challenges posed by digital transformation (Larson & 

DeChurch, 2020; Oberer, 2018). Banking leaders require a 4.0 leadership style, as 

proposed by Schwab (2016), which emphasises collaboration, human-centered 

approaches, and innovation. In contrast to traditional leadership paradigms that may 

prioritize hierarchical decision-making and efficiency (Taylor, 1911), the 4.0 leadership 

style, as advocated by Schwab (2016), fosters inclusivity, encourages cross-functional 

teamwork, and prioritises employee well-being and development. This approach is 

particularly relevant in the dynamic and rapidly evolving context of digital transformation 

(Ross et al., 2019; Kanter, 2020). The World Economic Forum predicts that leaders must 

be flexible, proactive, and purpose-driven to navigate technological advancements 



16 

 

(World Economic Forum, 2020, 2023). Moreover, leadership in the banking sector 

necessitates transformation to keep pace with digital changes (Larson & DeChurch, 

2020). 

The Fourth Industrial Revolution (4IR) has altered employee roles, demanding digital 

skills and adaptability (Oberer, 2018; Larson & DeChurch, 2020). Leaders must 

understand diverse employee needs, communicate effectively, and foster a culture of 

continuous learning (Ahn, Chang, & Heo, 2020). Adapting to changes in employee 

characteristics, such as increasing technological proficiency and a preference for flexible 

work arrangements, is crucial for effective leadership. Leaders need to embrace digital 

tools, promote continuous learning, and support a work-life balance to align with these 

evolving characteristics. (Ahn et al., 2020). 

The research problem addressed in this study is the challenge of leadership adaptation 

during the digital transformation of the SA banking sector. Despite the rapid adoption of 

digital technologies, there is a gap in understanding how these changes impact 

leadership practices and the effectiveness of leaders. This study investigates how 

leaders in the SA banking sector are navigating the complexities of digital transformation, 

including managing technological advancements, reshaping organisational culture, and 

meeting evolving employee and customer expectations. Addressing this issue is crucial 

for ensuring that leadership strategies align with the demands of the digital age. 

This research paper aims to examine various leadership styles and identify key factors 

influencing leadership in the SA banking sector, building on existing literature such as 

Bass and Avolio’s transformational leadership theory (1994) and Northouse’s work on 

adaptive leadership (2016). While substantial literature exists on leadership styles and 

factors driving leadership, this study specifically addresses the unique context of the SA 

banking sector's digital transformation. By exploring how leaders are responding to 

digital challenges, this study anticipates producing insights that enhance leadership 

practices by 

1. Identifying effective leadership styles for managing technological change and 

innovation. 

2. Providing recommendations for developing digital competencies among leaders. 



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3. Highlighting the role of leadership in fostering an organizational culture that 

supports digital transformation. 

4. Offering practical guidance on balancing traditional leadership practices with the 

demands of a digital-first approach. 

These insights therefore aim to support digital transformation initiatives by equipping 

leaders with the necessary tools and strategies to navigate the complexities of digital 

change effectively. 

The findings further serve as a resource for SA banking sector organisations, offering 

insights and recommendations for transforming leadership practices, thereby 

contributing to the success of digital transformation initiatives. 

 

1.4 RESEARCH QUESTIONS  

The research problem investigates the impact of leadership on digital transformation and 

identifies the changes and leadership styles necessary for leaders to become more 

effective in this context. The following questions answered by this research are as 

follows:  

1. “What are the specific leadership competencies needed to address gaps in the 

SA banking sector during digital transformation?”  

2. “What leadership style do you believe has the most effective impact in the 

success of Digital Transformation within the SA banking sector, Explain?” 

3. “What are the best practices for leading employees through the changes brought 

on by Digital Transformation?” 

4. “What is the role of leadership in driving digital transformation in the SA banking 

sector?” 

 

1.5 RATIONALE  

The formidable challenge posed by global digital transformation extends its reach to the 

SA banking sector, necessitating a nuanced understanding of leadership dynamics. 

Leaders within the banking industry must skilfully navigate the evolving business 

landscape, responding to emerging opportunities and challenges brought forth by digital 

transformation (Tiekam, 2019). Recognising the critical role of effective leadership as a 

determinant of organisational success adds impetus to this exploration (Benmira & 

Agboola, 2021). This study is driven by the aim to comprehensively unravel the essential 



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leadership changes demanded by technological evolution within the SA banking sector, 

specifically homing in on the transformative process of digital evolution. Acknowledging 

the continual impact of digital transformation, the study acknowledges the imperative for 

adaptive leadership styles as technology perpetually evolves (Diener & Spacek, 2021). 

The SA banking sector, a linchpin of the national economy, places a premium on 

effective leadership for catalysing innovation, driving growth, and ensuring sustainability  

(Cortellazzo, Bruni, & Zampieri, 2019). In the face of challenges such as economic 

volatility, intensifying competition, and shifting customer expectations (Dyk, 2019; FNB, 

2016), leaders are compelled to adapt their strategies, staying competitive and relevant. 

The ongoing digital transformation in banking underscores the urgent need for leaders 

endowed with the skills and competencies to adeptly navigate digital landscapes, 

steering organisations toward success in this transformative process (Oberer, 2018). 

Beyond the confines of the SA banking sector, this research holds promise in offering 

valuable insights and best practices applicable to leaders in various domains (Bass, 

1990; Avolio & Yammarino, 2013; Northouse, 2018). By delving into the perspectives 

and experiences of leaders across diverse organisations, this study seeks to inform 

decision-making processes and contribute to the development of effective leadership 

strategies. The contemporary challenges faced by decision-makers and leaders in the 

SA banking sector, characterised by rapid technological changes and the imperative for 

digital transformation (Alaarj et al., 2016; Westerman et al., 2019), underscore the 

urgency for innovative and adaptive leadership approaches. Through an examination of 

current practices, this study aims to identify gaps and provide insights to enhance 

strategic decision-making and leadership approaches, ensuring they are more 

responsive, innovative, and capable of navigating the complexities of the digital age 

(Kane et al., 2015; Fitzgerald et al., 2014). 

 

1.6 DELIMITATIONS OF THE STUDY  

In this research study on leadership during digital transformation in the SA banking 

sector, specific delimitations were outlined: 

Methodology: The study employed a focused approach for data gathering, limited to 

interviews with senior and C-suite managers. Notably, the study did not extend to include 

the employees led by these executives. This decision was made to maintain a focused 

scope, allowing for an in-depth examination of leadership practices and strategies from 



19 

 

the perspective of the executives themselves. By concentrating on the experiences and 

insights of leaders, the study aims to uncover detailed and nuanced understandings of 

leadership challenges and adaptations during digital transformation. Including 

employees would have broadened the scope significantly, potentially diluting the depth 

of analysis on executive leadership. Future research could build on this study by 

incorporating employee perspectives to provide a more comprehensive view of the 

impact of leadership on digital transformation in the SA banking sector. 

Sample Size: Due to practical constraints, the sample size was limited to 15 interviews, 

which was feasible within the designated timeframe for concluding this paper. Despite 

the limited sample size, data saturation was achieved, as recurring themes and insights 

emerged consistently across the interviews, indicating that additional interviews were 

unlikely to provide new information. 

Population: Given the qualitative nature of the study, the study specifically focused on 

senior and C-suite managers within the SA banking sector, as their insights and 

experiences are crucial for understanding leadership challenges and strategies during 

digital transformation." 

Geographic Scope: The study was concentrated on the overall SA banking sector, 

without specific emphasis on individual provinces. Furthermore, the study was limited to 

SA and did not extend its scope to other countries due to the magnitude of research that 

would have been required effectively address all gaps and challenges faced world wide 

in retrospect to Banking Sector. 

 

1.7 DEFINITION OF TERMS  

C-suite leaders - C-suite leaders are the executives that run a given organization. These 

leaders are crucial to digital transformation and play a key role in setting the direction 

(McKinsey, 2023). 

 

Digital Transformation - refers to the process of integrating digital technologies into all 

aspects of a business or organisation's operations, culture, and strategy to enhance 

efficiency, productivity, and customer satisfaction (Tiekam, 2019). 

 

Fourth Industrial Revolution (4IR) - presents the culmination of the previous three 

industrial revolutions, characterised by digital technologies such as the Internet of Things 



20 

 

(IoT), big data analytics, artificial intelligence (AI), machine learning, robotics, and 

additive manufacturing (Kekwaletswe et al., 2020). 

 

Industry 4.0 - Signifies the integration of digital technologies and systems into 

manufacturing and production processes, synonymous with the 4IR (Oberer, 2018). 

FinTech’s (Financial Technology) - Denotes the use of technology to provide financial 

services and products in innovative and efficient ways, deviating from traditional financial 

methods (Kekwaletswe et al., 2020). 

 

1.8 ASSUMPTIONS  

The assumptions guiding this study include: 

Literature Review Reflection - The challenges and gaps in leadership transformation 

identified in the literature review accurately reflected the current situation in the SA 

banking sector. However, recognising potential bias or incompleteness in the literature 

review, efforts have been made to mitigate such shortcomings. 

Data Accuracy - An assumption is made that the data collected from interviews is 

accurate and reflects the participants' actual experiences and perspectives. 

Nonetheless, the potential for bias exists, particularly if participants are not forthcoming, 

which could impact the research's reliability. 

Methodology Suitability – It is assumed that the chosen research methodology is 

appropriate. However, acknowledging the potential impact of data analysis issues, steps 

have been taken to ensure the methodology's suitability.  

 

1.9 CHAPTER OUTLINE  

The study is structured as follows: 

Chapter 1 – INTRODUCTION  

Introduces the constraints of Digital Transformation, emphasizing the need for leadership 

transformation as technology evolves in the SA banking sector. It outlines the research 

problem, the business and academic rationale, and defines the scope of the study. 

 

Chapter 2 - LITERATURE REVIEW AND THEORETICAL FRAMEWORK 

Provides an in-depth literature review of leadership within the SA banking sector, 

covering the impact and challenges of digital transformation on leadership. It emphasises 



21 

 

the need for the transformation of leadership, focusing on transformational and servant 

leadership moving towards the 4.0 Leader. 

 

Chapter 3 - RESEARCH METHODOLOGY  

Reviews the methodology addressing gaps in leadership and the research questions 

from Chapter 1. In addition, it provides ethical considerations for the change in leadership 

based on data gathering and analysis. 

 

Chapter 4 - FINDINGS  

Presents a comprehensive analysis of the collected data using thematic analysis, 

showcasing findings with tables, graphs, and/or other visual representations. This 

chapter highlights key trends, patterns, and relationships identified during the analysis. 

 

Chapter 5 - DISCUSSION OF RESULTS 

Analyses and interprets the results presented in Chapter 4, comparing them with relevant 

studies from the literature review in Chapter 2. It explores the implications of the findings 

in relation to the research objectives outlined in Chapter 1. 

 

Chapter 6 - DISCUSSION, RECOMMENDATIONS, AND FUTURE DIRECTIONS 

Summarises the findings and their significance in relation to the research problem. It 

offers a concise overview of the insights obtained and their implications for theory, 

practice, or policy in the context of leadership during digital transformation in the SA 

banking sector. The conclusion may include recommendations for future research or 

practical applications based on the research outcomes. This chapter provides closure to 

the paper by reflecting on the research journey and its contribution to the field. 

 

 



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CHAPTER 2. LITERATURE REVIEW AND THEORETICAL FRAMEWORK 

 

2.1  BACKGROUND OF DISCUSSION 

The SA banking sector holds immense significance in the country's economy and is 

currently undergoing rapid transformation driven by technological advancements and 

evolving customer expectations (PwC, 2018). This transformation, commonly referred to 

as DT, poses significant challenges that require effective leadership to ensure successful 

implementation (Tiekam, 2019). Studies have shown that leadership plays a critical role 

in shaping organisational culture, fostering innovation, and navigating the complexities 

of change (Larson & DeChurch, 2020). In addition, past studies have also emphasised, 

that leaders within the banking sector faced various obstacles in adapting to 

technological changes, upskilling employees, and fostering collaboration (Larson & 

DeChurch, 2020). 

 

Despite the limited research available on leadership during digital transformation in the 

SA banking sector, it was imperative to gain an understanding of the key factors that 

influence leadership effectiveness and identify suitable strategies and styles (PwC, 2018; 

Diener & Spacek, 2021). This study is aimed at exploring the competencies required for 

leadership during digital transformation in the SA banking sector, offering valuable 

insights and recommendations to banks undergoing this transformative process (Larson 

& DeChurch, 2020). By addressing these research questions, the study endeavoured to 

assist the banking sector in transforming leadership practices to achieve successful 

digital transformations (Tiekam, 2019) practices to achieve successful digital 

transformations (Tiekam, 2019). 

 

2.2 INTRODUCTION 

The literature review in this study served the purpose of examining leadership 

competencies, exploring the role of leadership during digital transformation, and 

identifying research gaps in the SA banking sector. The review is structured as follows: 

 

Introduction of concepts – Introduction of the concepts related to leadership 

competencies, research gaps, and the impact of digital transformation in the SA banking 

sector. 

 



23 

 

Benefits and challenges of effective leadership – Synthesis of the potential benefits and 

challenges associated with effective leadership and leadership transformation during 

digital transformation in the banking industry. 

 

Competencies for effective leadership - Focus on the specific competencies required for 

effective leadership and leadership transformation in the SA banking sector during digital 

transformation. 

 

Systematic Literature Review - Presents a systematic review to address the following 

research questions: 

 

• "What are the specific leadership competencies needed to address gaps in the 

SA banking sector during digital transformation, and how can leaders effectively 

transform their leadership in the digital age?" 

• "What leadership style do you believe has the most effective impact in the 

success of Digital Transformation within the SA banking sector?  

• "What are the best practices for leading employees through the changes brought 

on by Digital Transformation?" 

• "What is the role of leadership in driving digital transformation in the SA banking 

sector?" 

 

The aim of this systematic review was to identify gaps in the existing literature and 

develop a conceptual framework to guide the study. Based on the rationale developed 

in the introduction, it is assumed that effective leadership and leadership transformation 

are critical for addressing gaps in the banking sector during digital transformation. 

 

2.2.1 LEADERSHIP COMPETENCIES, GAPS, AND THE IMPACT OF DIGITAL 

TRANSFORMATION IN THE SA BANKING SECTOR 

Within the context of the literature review, it becomes apparent that effective leadership 

competencies are imperative for the success of digital transformation in the SA banking 

sector (Tiekam, 2019). Existing literature emphasises the significance of digital 

leadership skills, encompassing strategic visioning, digital fluency, and change 

management, as pivotal drivers for digital transformation (Diener & Spacek, 2021; Lee & 

Choi, 2019; Naidoo & Naidoo, 2020; Oberer, 2018). Nevertheless, identified within the 



24 

 

literature are gaps in leadership competencies where leaders lack the necessary digital 

skills and knowledge essential for the effective implementation of digital transformation 

strategies (Diener & Spacek, 2021). Van Dyk and Van Belle (2019) observed that 

numerous leaders in the SA banking sector exhibited deficiencies in digital fluency, 

understanding, and skillsets, thereby hindering their capacity to propel digital 

transformation. 

 

Tiekam's (2019) research posits that leaders in South Africa need to possess digital 

leadership skills, such as strategic visioning and change management, to adeptly 

navigate the challenges and opportunities presented by digital technologies. In addition, 

another study suggested that leaders must cultivate a growth mindset and the ability to 

foster a culture of innovation, attributes often found lacking in traditional hierarchical 

organisations (Oberer, 2018). Beyond these skills, existing research underscored the 

need for leaders to foster numerous competencies and skills (Larson & DeChurch, 2020). 

Therefore, leaders must possess both technical and social skills, including data analytics 

and communication, to successfully lead digital transformation efforts (Larson & 

DeChurch, 2020; Lee & Choi, 2019). The possession of these skills augments the 

likelihood of a successful digital transformation. 

 

Literature also accentuated the benefits of Digital Transformation (DT) for the SA banking 

sector, encompassing improved customer experience, enhanced operational efficiency, 

and heightened competitiveness (Naidoo. & Naidoo, 2020). However, DT introduces 

substantial challenges, necessitating leaders to adeptly manage data privacy and 

security risks (Diener & Spacek, 2021). Ethical challenges surface in the digital era, 

emphasising the need for leaders to strike a delicate balance between the benefits of 

new technologies and the potential risks they pose (Huang et al., 2019). Consequently, 

the critical competencies of leaders spearheading digital transformation in the SA 

banking sector must encompass ethical considerations (Dubru, 2019; Bhatta, 2021). 

 

To harness benefits and mitigate risks, leaders must possess the requisite competencies 

for ensuring success. Dubru (2019) has identified the critical competencies essential for 

leaders in the digital transformation of banking in SA, encompassing the ability to foster 

a customer-centric culture, build strategic partnerships, and leverage technology to 

enhance business outcomes (Dubru, 2017). Consequently, effective leadership 



25 

 

competencies, recognition of gaps, and understanding the impact of digital 

transformation emerge as critical concepts in the SA banking sector. Leaders in the 

sector must possess specific digital leadership skills to successfully drive digital 

transformation while adeptly addressing challenges such as data privacy, security risks, 

and ethical considerations (Neeley & P., 2019). Leaders equipped with the necessary 

digital skills, knowledge, and mindset can leverage technology to drive innovation, 

enhance customer experience, and achieve business success (Tiekam, 2019). 

 

2.2.2 DIGITAL TRANSFORMATION IN THE BANKING SECTOR: 

OPPORTUNITIES AND CHALLENGES 

In the DT landscape, potential benefits have included growth, improved customer 

experiences, cost reduction, and increased transactional speed (Naidoo. & Naidoo, 

2020; PwC, 2022). In addition, it has had the capacity to foster financial inclusion and 

alleviate poverty by enhancing access to financial services, particularly in under-served 

communities (World Economic Forum, 2020). Leadership assumes a pivotal role in 

capitalising on these opportunities and navigating challenges to ensure the success of 

DT within the banking sector (Naidoo. & Naidoo, 2020). Tiekam (2019) underscored the 

necessity for SA leaders to possess digital leadership skills for the effective execution of 

digital transformation. Moreover, recognising the integral role of employees, these skill 

sets can be cultivated through effective leadership (World Economic Forum, 2020). 

 

The DT landscape within the banking sector not only presents numerous opportunities 

for growth and increased efficiency (Naidoo and Naidoo, 2020) but also poses 

challenges for leaders. They are compelled to adapt swiftly to technological 

advancements, manage changes in organisational structures and cultures, and address 

emerging ethical concerns, such as privacy and data security (Bhatta, 2021; Huang et 

al., 2019; Lee, J, & Choi, 2019). The adoption of digital technologies amplifies 

cybersecurity risks, necessitating leaders to implement robust measures for risk 

mitigation (Tiekam, 2019). The rapid pace of technological change may have led to skill 

gaps among employees and leaders, emphasising the need for continuous training and 

development initiatives (Lee & Choi, 2019; Tiekam, 2019). Leadership has been 

confronted with challenges related to workforce transformation, cultural change, and 

regulatory compliance during the process of digital transformation (Naidoo. & Naidoo, 

2020; Tiekam, 2019). 



26 

 

 

Creating a culture of innovation and digital adoption has been deemed essential for 

enabling workforce transformation and ensuring the success of DT initiatives (Larson & 

DeChurch, 2020; PwC, 2019). Consequently, the realm of digital transformation within 

the banking sector not only presents opportunities but also poses challenges that have 

necessitated adept leadership. 

 

2.3 SPECIFIC COMPETENCIES REQUIRED FOR EFFECTIVE LEADERSHIP 

DURING DIGITAL TRANSFORMATION 

Digital transformation emerges as a critical facet within the SA banking sector, 

demanding effective leadership to propel and oversee the transformational journey 

(Mokwena, Antwi-Agyei, & Marivate, 2021). This section undertook a thorough analysis 

of literature, drawing insights from fifteen selected articles (Appendix B), to articulate key 

competencies essential for leadership and its transformation during the digital evolution 

within the banking sector (Kamara, Sheng, Akram, & Agyekum, 2020). By scrutinising 

common themes and contrasting findings within these selected articles, this review 

aimed to shed light on the crucial skills and attributes that leaders must possess to 

adeptly navigate the digital transformation process in the industry. 

 

Numerous articles highlight the impact of digital transformation on the SA banking sector, 

detailing shifts in business operations and strategies (Abrahams & Burke, 2019; Sibanda 

& Ramrathan, 2017). However, the fifteen selected articles chosen for the purposes of 

this study (Nowell, Norris, White, & Moules, 2017) offered a comprehensive examination 

of these impacts. The authors illuminated the challenges faced by leaders in managing 

this transformation, encompassing resistance to change, skills gaps, and cultural shifts 

(Guo & Xu, 2021). The findings derived from this review bear practical implications for 

leaders in organisations. Ultimately, contributing to the existing knowledge on leadership 

in the context of digital transformation, offering guidance for leaders in the SA banking 

sector and beyond to ensure the successful adoption and implementation of digital 

strategies. 

 



27 

 

2.3.1 COMPETENCIES FOR EFFECTIVE LEADERSHIP DURING DIGITAL 

TRANSFORMATION 

A study conducted by Tiekam (2019) explored digital leadership skills crucial for the 

successful digital transformation of SA organisations, with a specific focus on the banking 

sector. The study highlighted six critical competencies that leaders needed to instill and 

nurture in teams to propel digital transformation: digital vision, digital culture, digital 

literacy, digital strategy, digital communication, and digital innovation (Tiekam, 2019). 

Another study underscored that digital transformation necessitated a shift in leadership 

style towards more collaborative, adaptive, and visionary approaches (Oberer.B. & 

Erkollar, 2018). Leaders are required to possess not only technical and digital skills but 

also soft skills, encompassing management and communication skills. 

 

Oberer (2018), on the other hand, focused on the concept of Leadership 4.0, delineating 

the competencies indispensable for effective leadership in the digital age. This paper 

identified four key areas of competency: cognitive, interpersonal, intrapersonal, and 

operational. Cognitive competencies included analytical thinking, creativity, and digital 

literacy. Interpersonal competencies encompassed empathy, communication, and 

teamwork. Intrapersonal competencies involved self-awareness, adaptability, and 

resilience. Operational competencies covered the ability to manage change, lead 

innovation, and drive results (Oberer, 2018). These findings underscored the increasing 

necessity for leadership to possess specific cognitive skills during the evolution of 

technology. This perspective aligned with other research emphasising softer 

interpersonal skills in leadership (Tiekam, 2019; Michael D, Todd, Higgs, & McIntosh, 

2017). However, existing research did not provide a definitive understanding of whether 

South African leaders possessed all the required skills (Tiekam, 2019; Oberer.B. & 

Erkollar, 2018). As a result, it became imperative for organisations to assess and develop 

the competencies of their leaders, ensuring that they were fully equipped to lead 

successful digital transformations. In addition, the success factors linked to these 

competencies needed to be measured.  

 

2.3.2 BARRIERS TO DIGITAL TRANSFORMATION IN THE BANKING 

INDUSTRY: A MANAGERIAL PERSPECTIVE 

Diener and Spacek (2021) undertook a study focusing on the barriers to digital 

transformation in the banking industry, examining them from a managerial perspective. 

Despite the recognised benefits of digital transformation, many banks encounter 



28 

 

challenges in its implementation, attributed to various barriers including regulatory 

constraints, legacy disputes, and cultural resistance (Diener & Spacek, 2021; Naidoo. & 

Naidoo, 2020). Effective leadership and management emerge as pivotal elements 

capable of surmounting these barriers by fostering a culture of innovation, investing in 

new technologies, and promoting collaboration across different departments (Naidoo. & 

Naidoo, 2020). 

 

While the article does not specifically concentrate on the South African (SA) banking 

sector, the issues and barriers discussed hold relevance for banks in SA, as they grapple 

with similar challenges in implementing digital transformation. Consequently, the insights 

presented in this article can assist SA banking leaders in comprehending the barriers to 

digital transformation and formulating strategies and leadership practices to overcome 

them. 

 

2.3.3 GAPS IN LEADERSHIP COMPETENCIES 

Naidoo and Naidoo (2020) delved into the role of leadership in propelling digital 

transformation within the SA banking sector. Their qualitative study, comprising semi-

structured interviews with ten managers and senior managers across six major SA 

banks, aimed to pinpoint the crucial leadership competencies needed for successful 

digital transformation. Among the paramount competencies identified were a strategic 

vision for digital transformation, effective communication and collaboration skills, and the 

ability to adeptly manage change and risk (Naidoo. & Naidoo, 2020). 

 

Further insights from the study underscored the potential deficiency in these 

competencies among many leaders in the banking sector, exposing a gap in the 

development of digital leadership skills. Notably, these findings emerged a year after the 

publication of a paper addressing skills for leaders during digital transformation (Tiekam, 

2019). Hence, additional research becomes imperative to gain a more nuanced 

understanding of the specific leadership competencies requisite for the triumph of digital 

transformation within the banking industry. 

 

2.3.4 ORGANISATIONAL CULTURE  

Baird and Wang (2020) asserted that organisational culture plays a pivotal role in 

steering successful digital transformation initiatives. Their study underscored the 



29 

 

imperative of aligning the existing organisational culture with the requisites of digital 

transformation, emphasising the significant role of leaders in moulding the culture to 

bolster these endeavours. Other studies, particularly those focusing on dimensions of 

digital capabilities, innovation, and agility (Ahn, Chang, & Heo, 2020), echoed the 

importance of fostering a culture that encourages experimentation, risk-taking, and 

continuous learning for effective digital transformation. 

 

These collective findings reinforced the understanding that organisational culture stands 

as a critical factor in the landscape of digital transformation. Leaders are tasked with 

cultivating a culture that nurtures innovation, agility, and continuous learning within their 

organisations (Baird & Wang, 2020). Such a culture not only propels the adoption of new 

technologies but also fosters an environment conducive to experimentation and enables 

data-driven decision-making, ultimately culminating in successful outcomes for digital 

transformation initiatives (Ahn, et al., 2020; Baird & Wang, 2020). 

 

2.3.5 ETHICAL LEADERSHIP CHALLENGES DURING DIGITAL 

TRANSFORMATION 

Bhatta (2021) conducted a comprehensive literature review on emerging ethical 

challenges of leadership in the digital era, identifying ethical dilemmas that digital leaders 

face, including privacy concerns, cybersecurity threats, and the ethical use of data. This 

suggested that digital leaders need to develop ethical leadership competencies to 

navigate these challenges effectively and develop a sense of responsibility and 

accountability towards an ethically led digital society. 

 

"Leadership 4.0: Digital Leaders in the Age" by Oberer (2018) highlights the role of 

leadership in creating a positive digital culture and addressing ethical challenges that 

arise during digital transformation. Oberer (2018) further argues that digital leaders must 

focus on developing a shared vision and a sense of purpose, aligning their organisation's 

culture with the digital age, and building trust and collaboration among employees to 

create a sustainable digital future. Therefore, there is an opportunity to further analyse 

this theme and its potential contribution to leadership transformation during digital 

transformation within the SA banking sector. 

 



30 

 

2.4 LEADERSHIP STYLE AND THE SUCCESS OF DIGITAL 

TRANSFORMATION IN THE SA BANKING SECTOR 

The choice of leadership style can have a significant impact on the success of DT 

initiatives within the SA banking sector. Different leadership styles offer unique 

approaches to managing change and driving innovation. Several studies have explored 

the effectiveness of different leadership styles in the context of digital transformation. 

 

2.4.1 TRANSFORMATIONAL LEADERSHIP 

Transformational leadership was identified as a promising leadership style for driving 

digital transformation and can be applied in the context of the banking sector in SA (Bass 

& Riggio, 2020). Transformational leaders inspire and motivate employees to embrace 

change, envision a better future and encourage them work towards it (Bass & Riggio, 

2021). This leadership style promotes a sense of shared vision, fosters creativity and 

innovation, and encourages employees to adopt a proactive approach to change. 

Research has shown that transformational leadership positively influenced employees' 

attitudes and behaviours during digital transformation efforts (Avolio & Yammarino, 

2020). It enhanced their commitment to change, increased their willingness to embrace 

new technologies, and improved their job satisfaction (Avolio & Yammarino, 2020). By 

effectively communicating the vision, providing guidance, and serving as role models, 

transformational leaders created an environment conducive to successful digital 

transformation. 

 

2.4.2 PARTICIPATIVE LEADERSHIP 

Participative leadership, characterised by involving employees in decision-making 

processes, can also be effective in the context of digital transformation. By seeking input 

from employees and considering their perspectives, participative leaders create a sense 

of ownership and engagement (Wang, Hou H., & Li, 2022). This collaborative approach 

can enhance employee commitment and facilitate the adoption of digital initiatives in the 

SA banking sector. Studies have shown that participative leadership positively influenced 

employees' attitudes towards digital transformation (Shin et al., 2020). It fostered a sense 

of empowerment and autonomy, leading to increased job satisfaction and commitment 

to change (Shin et al., 2020). Furthermore, involving employees in decision-making 

processes can harness their diverse expertise, improve problem-solving capabilities, and 

generate innovative ideas, contributing to the success of digital transformation efforts. 



31 

 

However, in a fast-paced industry like banking, participative leadership can also slow 

down decision-making processes and lead to conflicts or indecision, potentially hindering 

swift responses to market changes and urgent issues (Northouse, 2018). Balancing the 

benefits of employee involvement with the need for efficient decision-making is crucial. 

 

2.4.3 SERVANT LEADERSHIP 

Servant leadership is found to be particularly relevant to the banking sector, where 

leaders prioritise serving the needs of their employees, fostering their growth and 

development, and enabling their success (Choudhary, Akhtar, & Zaheer, 2020). In the 

context of digital transformation, servant leaders in the banking sector can create a 

supportive environment that empowers and encourages employees to embrace change 

(Kim & Park, 2021). They achieve this by prioritising the needs and development of their 

team members, actively listening to their concerns, providing the necessary resources, 

and training, and fostering a culture of trust and collaboration (Kim & Park, 2021). This 

approach helps employees feel valued and supported, enhancing their willingness and 

ability to adapt to new digital initiatives and changes (Choudhary, Akhtar, & Zaheer, 

2020). In addition, this leadership style promotes employee engagement and facilitates 

a culture of continuous learning and adaptation (Kim & Park, 2021). Research has shown 

that servant leadership has a positive impact on employees' attitudes and behaviours 

during digital transformation initiatives in the banking sector (Choudhary, Akhtar, & 

Zaheer, 2020). While servant leadership fosters a climate of trust, promotes open 

communication, and supports employees in acquiring new digital skills (Kim & Park, 

2021), it's important to recognize that not all leaders in the SA banking sector may adopt 

this approach. Existing leaders may have leadership styles they are accustomed to, 

which may still yield favourable results. Indeed, there are various ways of influencing 

employees that can produce similar outcomes, such as transformational leadership or 

transactional leadership, which also prioritize employee well-being and development 

while achieving organizational goals (Northouse, 2018; Bass & Riggio, 2006). Therefore, 

the success of digital transformation efforts may depend on the alignment between 

leadership style and organizational culture. Additionally, leaders may need to adapt their 

leadership approaches to meet the evolving needs of digital transformation, striking a 

balance between traditional leadership practices and innovative approaches. 



32 

 

 

2.5 BEST PRACTICES FOR LEADING EMPLOYEES THROUGH DIGITAL 

TRANSFORMATION 

Leading employees through the changes brought on by digital transformation requires 

the implementation of best practices that support their adaptation and engagement. 

 

2.5.1 CLEAR COMMUNICATION AND VISION 

According to Lee & Kim (2019) Clear communication was essential to ensure that 

employees understood the purpose, goals, and benefits of digital transformation 

initiatives. Leaders articulated compelling visions aligned with the organisation's strategy 

and effectively communicated the rationale behind the changes (Burke, 2017). Effective 

communication involved not only transmitting information but also actively listening to 

employees' concerns and addressing them promptly (Burke, 2017). Transparent 

communication-built trust, reduced resistance to change, and fostered a sense of shared 

purpose (Baird & Wang, 2020). Consistently communicating the vision and progress of 

digital transformation kept employees informed and engaged throughout the process. 

 

2.5.2 EMPLOYEE EMPOWERMENT AND SKILL DEVELOPMENT 

Empowering employees and investing in their skill development were crucial for 

successful digital transformation in the banking sector in SA. Research studies 

highlighted the significance of employee empowerment and skill development in driving 

digital transformation initiatives. Ziadlou (2021) emphasised the importance of 

empowering employees and equipping them with the necessary skills and knowledge to 

adapt to technological changes. The findings showed that empowered employees were 

more adaptable and innovative in embracing digital transformation (Ziadlou, 2021). As 

leaders in the banking sector played a critical role in promoting employee empowerment 

and skill development, they provided opportunities for training and development to 

enhance employees' digital competencies (Larjovuori, Bordi, & Tammi, 2018). By 

equipping employees with the necessary knowledge and skills, leaders enabled them to 

effectively contribute to digital initiatives (Ziadlou, 2021). Furthermore, leaders needed 

to empower their employees by delegating responsibilities, encouraging 

experimentation, and creating a supportive culture that embraced risk-taking and 

learning from failures (Hsiao, Yang, & Lee, 2022). This approach allowed employees to 

take ownership of their roles and make decisions within their areas of expertise (Hsiao, 



33 

 

Yang, & Lee, 2022). Therefore, by empowering employees and investing in their skill 

development, leaders in the banking sector fostered a workforce capable of adapting to 

digital changes, driving innovation, and contributing to the success of digital 

transformation initiatives. However, this must be balanced with the critical need for 

accuracy and protection of clients' information (Garcia & Rodriguez, 2019). Given the 

stringent regulatory environment, employees must prioritize compliance and adherence 

to regulations to mitigate risks (Johnson et al., 2021). Nonetheless, fostering a learning 

orientation remains valuable. Leaders can promote a 'growth mindset' where mistakes 

are seen as opportunities for growth (Dweck, 2006). By nurturing a culture of continuous 

learning and providing training and resources, employees can enhance their skills and 

confidence (Brown & Miller, 2018). Additionally, leaders can implement feedback 

mechanisms for constructive analysis of mistakes, facilitating improvement and 

preventing recurrence (Edmondson, 2019). Ultimately, achieving a balance between 

innovation and risk management is vital for driving successful digital transformation 

initiatives while upholding the integrity and security of banking operations. 

 

2.5.3 CHANGE MANAGEMENT AND SUPPORT 

Leaders in the SA banking sector play a critical role in driving and supporting digital 

transformation. Rehman et al., (2021) emphasised that leaders addressed change 

resistance by engaging with employees, addressing concerns, and highlighting the 

benefits of digital transformation. In their role as change champions, leaders have the 

opportunity to cultivate a positive mindset among their teams, which is characterized by 

a proactive and optimistic outlook, resilience in the face of challenges, and a belief in the 

ability to adapt and succeed (Rehman et al., 2021). Creating a positive mindset involves 

more than just superficial positivity; it requires leaders to instil a sense of purpose, 

meaning, and optimism in their employees (Rehman et al., 2021). 

 

One-way leaders can foster a positive mindset is by providing clarity and vision regarding 

the digital changes ahead. By articulating a compelling vision for the future and 

demonstrating confidence in the team's ability to navigate challenges, leaders can inspire 

hope and optimism among employees (Diener & Spacek, 2021). Additionally, leaders 

can encourage a growth mindset, where failures and setbacks are viewed as 

opportunities for learning and growth rather than as insurmountable obstacles (Diener & 

Spacek, 2021). Ultimately, creating a positive mindset and motivating employees to 



34 

 

embrace digital changes requires authentic leadership that is grounded in empathy, 

transparency, and a genuine concern for the well-being and success of team members 

(Rehman et al., 2021). 

 

2.6 THEORETICAL FOUNDATIONS OF LEADERSHIP AND DIGITAL 

TRANSFORMATION  

2.6.1 DIGITAL TRANSFORMATION IMPACT 

Digital transformation has exerted a significant influence on leadership in the 

contemporary business landscape. To comprehend this impact, a theoretical framework 

integrating the Technology Acceptance Model (TAM) and the Transformational 

Leadership Theory (TLT) is employed (Al-Qaysi, Al-Turfi, & Al-Taie, 2020; Fouad A.B. & 

Kazim, 2019). The TAM, an established theory explaining the acceptance and use of 

technology by individuals, and TLT, a leadership theory emphasising a leader’s ability to 

inspire and motivate followers towards a common goal (Avolio & Yammarino, 2020; 

Venkatesh & Xu, 2012; Alalwan & Rana, 2017; Kim & Lee, 2020), together provide a 

comprehensive understanding. 

 

The TAM is instrumental in understanding how the adoption of digital technologies by 

employees in the banking industry influence their behaviour and leadership performance 

(Al-Qaysi, et. al., 2020; Obeidat, Al-Suradi, & Tarhini, 2021; Zhou, 2021). This theory 

posits that an individual’s acceptance of technology is influenced by perceived 

usefulness and ease of use (Zhou, 2021). Concerning leadership, employees perceiving 

digital technologies as useful and user-friendly are more likely to integrate them into their 

leadership practices, thereby enhancing leadership effectiveness and organisational 

outcomes (Al-Qaysi, et al., 2020; Sada, et al., 2021). 

 

TLT offers a valuable perspective on how leaders inspire and motivate employees to 

adapt to digital transformation (Avolio & Yammarino, 2020; Liu, Li, & Liang, 2021). This 

theory underscores the significance of transformational leaders who inspire their 

followers to pursue a common goal (Hsiao, Yang, & Lee, 2022). In the context of digital 

transformation, transformational leaders can inspire and motivate their employees to 

embrace new digital technologies and integrate them into their leadership practices (Al-

Tamimi, Nordin, & Ali, 2021; Bass & Riggio, 2020; Hsiao, et al., 2022; Sada, et al., 2021), 



35 

 

resulting in increased innovation, productivity, and organisational performance (Avolio & 

Yammarino, 2020; Kurt & Afzal, 2019). 

 

The integration of TAM and TLT forms a valuable framework for understanding the 

impact of digital transformation on leadership (Al-Qaysi, et al., 2020). This framework 

suggests that the adoption of digital technologies by employees can enhance the 

effectiveness of their leadership, while transformational leadership can inspire and 

motivate employees to embrace new digital technologies, thereby driving organisational 

performance (Hsiao, et al., 2022). 

 

To ensure a clear understanding of the framework's concepts, relevant terms such as 

technology acceptance, transformational leadership, and digital transformation were 

defined. Examples were provided to illustrate their use. The integration of the TAM and 

TLT frameworks facilitated a comprehensive exploration of the impact of digital 

transformation on leadership in the SA banking sector. The proposed framework was 

visually represented to describe the existing relationships between and among variables, 

incorporating the key constructs of the TAM and TLT and their relevance to leadership 

in the banking industry. 

 

Figure 1: Visual illustration integrated TAM and TLT 

 

Leadership in the 

South African banking 
Sector

TAM TLT

Percieved uesfulness

Attitude towards use

Percieved ease of 

use

Individualised

Consideration

Inspirational 

Motivation

Idealised Influence



36 

 

The diagram illustrates how two theoretical frameworks, the TAM and the TLT, were 

used to create a conceptual framework for analysing leadership in the SA banking sector. 

The central box in the diagram, labelled "Leadership in the SA Banking Industry," serves 

as the focus of the study. The two arrows pointing towards the central box represent the 

TAM and TLT frameworks, integrated into the conceptual framework. The TAM and TLT 

boxes represent the two theoretical frameworks in use. The TAM box has three arrows 

pointing towards it, labelled "Perceived usefulness," "Perceived ease of use," and 

"Attitude towards use," key elements relevant to the study. The TLT box also has three 

arrows pointing towards it, labelled "Idealised influence," "Inspirational motivation," and 

"Individualised consideration," also relevant to the study.  

 

The constructs in the TAM and TLT boxes are connected to the "Leadership in the SA 

Banking Industry" box through arrows, indicating their impact on leadership behaviour. 

Where the TAM constructs can influence leaders to be more open and proactive in 

adopting new digital tools, while perceived usefulness can lead leaders to champion 

technology adoption, resulting in more committed and enthusiastic teams. TLT 

constructs like inspirational motivation allow leaders to articulate a compelling vision of 

the future, energizing and aligning the workforce towards digital transformation goals, 

while individualized consideration helps leaders provide personalized support, 

enhancing employee engagement and adaptability. 

 

The diagram may be expanded by adding other relevant constructs or arrows, enhancing 

the representation of the TAM and TLT framework integration. This expansion aids in 

providing a comprehensive analysis of leadership behaviour in the SA banking sector. 

The framework guides the literature review by determining what literature to review and 

which variables to examine. It helps identify key drivers of technology acceptance and 

transformational leadership impacting leadership behaviour in the banking industry. 

Additionally, the framework influences research design, including methodology, 

sampling strategy, and data analysis techniques. The integration of TAM and TLT 

provides a theoretical framework that elucidates the relationships between variables and 

their underlying mechanisms. This combined approach offers insights into how factors 

such as technological acceptance and transformational leadership traits interact to 

influence behaviour and outcomes within the context of the SA banking industry (Raza 

et al., 2020)." 



37 

 

 

Several studies, including those by Raza et al. (2020) and Al-Qaysi et al. (2020), have 

employed the TAM and TLT frameworks to investigate the impact of digital 

transformation on leadership in various industries, including banking. For instance, Al-

Qaysi et al. (2020) explored the impact of digital transformation on leadership behaviour 

in the Iraqi banking industry using these frameworks. Similarly, Sada et al. (2021) 

examined the relationship between digital transformation and leadership in the Nigerian 

banking industry. These studies provide evidence supporting the usefulness of the TAM 

and TLT frameworks in investigating the impact of digital transformation on leadership in 

the banking industry. 

 

Further studies beyond banking, such as in healthcare and education, have also utilised 

the TAM and TLT frameworks. Kuo, Chiu, Liu, and Ma (2019) found that transformational 

leadership played a significant role in facilitating the adoption of digital technologies in 

healthcare organisations. Similarly, Zhang et al. (2020) used the TAM and TLT in 

educational leadership, revealing a positive relationship between transformational 

leadership and teachers’ adoption of digital technologies in the classroom. 

 

Moreover, the TAM and TLT frameworks have been expanded to incorporate other 

relevant theories or concepts. Yang et al. (2020) employed the TAM, TLT, and the Job 

Demands-Resources model to investigate the impact of digital transformation on 

leadership in the hospitality industry. Their findings highlighted the significant role of 

transformational leadership in moderating the relationship between job demands and 

employees’ adoption of digital technologies. Hsiao et al. (2022) further incorporated the 

Technology-Organisation-Environment (TOE) framework to examine the impact of digital 

transformation on leadership in Taiwan's banking industry. 

 

In summary, these studies support the efficacy of the TAM and TLT frameworks in 

investigating the impact of digital transformation on leadership. They also demonstrate 

the potential for incorporating other relevant theories or concepts. 

 

2.6.2 EMPIRICAL EVIDENCE 

This research collected and analysed empirical evidence to explore the applicability of 

the proposed theoretical framework for understanding leadership in the SA banking 



38 

 

sector during digital transformation. Qualitative methods, such as interviews with C Suite 

leaders in the banking sector, were used to collect data. C-suite leaders were selected 

since these are the executives that run a given organization. These leaders are crucial 

to digital transformation and play a key role in setting the direction (McKinsey, 2023). By 

collecting data from C Suite leaders, the study aimed to explore the framework's 

relevance and identify any additional components necessary for navigating digital 

transformation in the banking sector. The analysis process involved categorising 

interview responses to identify emerging patterns and themes through qualitative 

thematic analysis.  

The proposed theoretical framework provided a foundation for studying leadership in the 

SA banking sector during digital transformation. The framework included key 

components like effective communication, innovation, strategic thinking, and 

collaboration, providing a comprehensive approach to studying leadership during digital 

transformation in the SA banking sector. The empirical evidence was refined through 

qualitative methods such as in-depth interviews with banking sector leaders, thematic 

analysis of interview data, and iterative refinement of the framework based on emergent 

themes and patterns. 

 

2.7 PROPOSITIONS 

From the theoretical framework above, four key propositions were derived, as presented 

in the table below. This provides a clear and concise overview of how the propositions 

relate to the specific questions regarding transformational leadership, leading employees 

through change, the role of leadership in digital transformation, and leadership 

competencies needed in the SA banking sector. Overall, it aligns with the key problem 

statement of Leadership during DT in the SA banking sector. 

Table 1 Questions and propositions 

Questions Propositions 

“What leadership style do you 

believe has the most effective 

impact in the success of Digital 

Transformation within the SA 

banking sector, Explain?” 

P1 – The success of digital transformation in SA banking 

relies on leaders inspiring and motivating employees to adopt 

new technologies 



39 

 

Questions Propositions 

“What are the best practices for 

leading employees through the 

changes brought on by Digital 

Transformation?” 

P2 – Leading through digital transformation requires 

transformational leadership, motivating employees to adapt, 

and integrating digital tech into leadership practices. 

“What is the role of leadership in 

driving digital transformation in the 

SA banking sector?” 

P3 – Leadership drives digital transformation in SA banking 

by inspiring employees to embrace new tech, boosting 

innovation, productivity, and performance 

“What are the specific leadership 

competencies needed to address 

gaps in the SA banking sector 

during digital transformation?”  

P4 - Leaders in SA banking need skills like communication, 

innovation, strategy, and collaboration to tackle digital 

transformation challenges and succeed. 

 

2.8 CONCLUSION OF LITERATURE REVIEW 

The exploration into leadership during digital transformation in the SA banking industry, 

undertaken through a systematic literature review, unveiled critical insights. The 

literature emphasised the pivotal role of effective leadership in successfully navigating 

the intricacies of the rapidly evolving digital landscape. However, it also highlighted 

notable gaps in current knowledge, paving the way for the formulation of a 

comprehensive conceptual framework. 

 

Various leadership styles, including transformational, participative, and servant 

leadership, emerged as influential in steering successful digital transformations within 

the banking sector. These styles were found to inspire and motivate employees, foster 

innovation, and create a positive organisational climate conducive to change. Best 

practices for leading employees through digital transformation encompassed clear 

communication, vision articulation, and employee empowerment, underlining the 

significance of proactive leadership. 

 

The integration of the TAM and TLT provided a solid theoretical foundation. This 

framework underscored the interconnectedness of technology adoption and leadership 

effectiveness, shedding light on how leaders could inspire and motivate employees to 

embrace digital changes. 

 



40 

 

Moving beyond theoretical underpinnings, the research proposed four key propositions. 

These propositions focused on the effectiveness of leadership styles in driving DT 

success, best practices for guiding employees through changes, the pivotal role of 

leadership in steering digital transformation, and the specific leadership competencies 

needed to address gaps in the SA banking sector during this transformative process. 

 

To substantiate and refine this conceptual framework, the research transitioned into the 

empirical phase. Utilising qualitative methods, interviews with C Suite leaders in the 

banking sector were conducted. This empirical evidence sought to validate the proposed 

framework and identify any additional components crucial for navigating digital 

transformation successfully. 

 

In essence, this literature review provides a comprehensive overview of the dynamics 

between leadership and digital transformation in the SA banking sector. From identifying 

gaps in existing knowledge to proposing a robust conceptual framework and formulating 

key propositions, the review sets the stage for an in-depth exploration of leadership's 

role in the ever-evolving digital landscape. 

 

  



41 

 

CHAPTER 3. RESEARCH METHODOLOGY 

 

3.1 INTRODUCTION 

This chapter provides a comprehensive overview of the research methodology applied 

to address the research questions. It elaborates on the chosen research approach, 

explaining its relevance, and provides insights into the research paradigm and data 

collection methods. The chapter serves to intricately detail how the research was carried 

out. The researcher is employed in an organisation actively involved in digital 

transformation strategies. This professional background contributed to a practical 

understanding of leadership within the realm of DT. While acknowledging potential 

biases, the structured and scientific foundation of the chosen philosophical approach 

ensured objectivity in research observations (Gravetter & Forzano, 2017). 

 

3.2 RESEARCH APPROACH 

This study embraced a qualitative research approach to explore the pivotal role of 

leadership in propelling successful digital transformation initiatives within the SA banking 

sector. Creswell (2023) underscored that qualitative research relies on textual and visual 

data, which involves unique steps in data analysis, and employs diverse procedures. 

Qualitative research facilitated an in-depth exploration of participants' experiences, 

perspectives, and practices (Creswell & Poth, 2018). This approach contributed to a 

nuanced understanding of leadership competencies, styles, and digital leadership skills 

in driving successful digital transformation. It also shed light on ethical considerations 

and cultural factors influencing leadership practices and their impact on digital 

transformation within the SA banking landscape (Creswell & Poth, 2018). Acknowledging 

the intricate complexities of human experience, social and cultural influences, and the 

significance of diverse stakeholder perspectives was paramount in comprehending the 

dynamics of digital transformation in the SA banking sector (Braun & Clarke, 2019; 

Creswell & Poth, 2018; Dionne, 2021). 

 

3.3 RESEARCH PARADIGM 

Qualitative researchers navigate various interpretive paradigms, such as positivist, 

postpositivist, constructivist, critical, and feminist-post structural assumptions (Creswell, 

Hanson, Clark, & Morales, 2007). For this study, the chosen paradigm was the 

constructivist worldview, which aligns with the research question. This alignment 



42 

 

emphasised individuals' pursuit of understanding their world and forming subjective 

meanings of their experiences. 

 

3.4 RESEARCH DESIGN AND DATA COLLECTION METHODS 

3.4.1 RESEARCH DESIGN 

In this qualitative study, the research design was informed by disciplines such as 

anthropology, sociology, the humanities, and evaluation (Creswell, Qualitative, 2023). 

Rooted in sociology and the humanities, the phenomenological design method was 

employed to capture the lived experiences of participants undergoing digital 

transformation within the SA banking sector (Creswell, Qualitative, 2023). This method 

facilitated a detailed analysis of leadership competencies, styles, and digital leadership 

skills driving successful digital transformation in the banking sector (Creswell & Poth, 

2018; Yin, 2018). 

 

3.4.2 METHODOLOGICAL ADVANTAGES 

Incorporating multiple sources of data, including observations and document analysis, 

enabled methodological triangulation, thereby enhancing the robustness and credibility 

of the findings. Real-world experiences shared by leaders in the banking sector allowed 

for an in-depth exploration of how leaders could effectively transform their leadership in 

the digital age, offering insights into leadership development for the digital era. While this 

study provides valuable insights, it has limitations, such as focusing on a specific case 

within the SA banking sector, which may affect the generalisability of the findings to other 

contexts. However, as discussed by Creswell in his work on qualitative research 

methodologies (Creswell, 2023), the insights gained may still be applicable to similar 

industries undergoing digital transformation. Thematic analysis, including thematic, 

content, and phenomenological approaches, addressed these limitations, contributing 

robust insights into leadership competencies, styles, and digital skills required for 

successful digital transformation in the banking sector (Creswell & Poth, 2018; Braun & 

Clarke, 2021). 



43 

 

3.5 DATA COLLECTION METHODS 

3.5.1 SEMI-STRUCTURED INTERVIEWS 

The primary data collection method involved conducting semi-structured interviews with 

eleven selected participants in person. These interviews, lasting thirty to forty-five 

minutes, were audio recorded with participants' consent. Semi-structured interviews 

provided flexibility to explore participants' experiences and perspectives in detail, 

allowing for follow-up questions (Guest et al., 2006). Despite challenges such as 

potential time constraints and difficulties in participant recruitment, interviews were 

meticulously scheduled in advance to secure participants' availability, with the added 

option for online sessions. These measures ensured a comprehensive exploration of 

factors influencing the study's problem and the identification of emerging themes in the 

data (Braun & Clarke, 2013). A total of 11 interviews were conducted during the process, 

falling short of the initially targeted 20. This deviation was attributed to practical 

constraints and challenges in participant recruitment, particularly when targeting C-suite 

executives (O'Reilly & Parker, 2013; Denzin, 2017)Despite the reduction in the number 

of interviews, the analysis consistently revealed recurring themes and patterns, 

indicating a level of saturation in the collected information (Saunders et al., 2018). 

Saturation, defined as the point at which no new information or insights emerge from 

additional data collection, was observed, affirming the comprehensive understanding 

gained from the 11 conducted interviews. 

This acknowledgment of data saturation reinforces the robustness of the study, ensuring 

that enough interviews were conducted to thoroughly explore the research questions and 

provide meaningful insights. While the initial target was 20 interviews, the achieved 

saturation at 11 interviews suggests that the study reached a point of information 

richness where additional interviews did not contribute substantially to the emerging 

themes. The decision to conclude data collection at this point was guided by the principle 

of saturation, aligning with qualitative research practices (Saunders et al., 2018). The 

identification of recurring patterns and themes across the data indicated that the 

information gathered was comprehensive and sufficient for addressing the research 

objectives. As such, the study provides a robust understanding of leadership during 

digital transformation within the SA banking sector, supported by the depth and richness 

of the collected data. 



44 

 

3.6 POPULATION AND SAMPLING 

3.6.1 POPULATION 

The population for this study included C-suite leaders with expertise and experience in 

digital transformation within the SA banking sector. These leaders were specifically 

chosen from one of the major banks in SA, ensuring a focused and relevant sample. 

While this decision limited the study to one bank due to competitive information 

constraints and time considerations, it was deemed appropriate as it aligned with the 

research objectives of investigating leadership's impact on digital transformation in the 

SA banking sector. 

3.6.2 UNIT OF ANALYSIS AND LEVEL OF ANALYSIS 

The unit of analysis in this study was defined as leaders driving digital transformation 

within the selected bank. 

3.6.3 SAMPLING METHOD, SAMPLING FRAME, AND SIZE 

Purposive sampling was employed for the deliberate selection of participants with 

extensive experience in leading digital transformation. The sample consisted of eleven 

C-suite executives from the chosen bank, ensuring that participants possessed the 

necessary insights to contribute meaningfully to the research study. Interviews, lasting 

30 to 45 minutes, were conducted to explore key themes. These sampling and data 

collection methods aligned effectively with the research objectives, ensuring the 

inclusion of participants with relevant expertise and experience. 

3.7 MEASUREMENT INSTRUMENT 

In line with the phenomenological design approach outlined in Section 3.3, an interview 

guide (Appendix D) served as the measurement instrument. This guide, structured with 

specific questions related to the challenges and improvements in leadership during 

digital transformation, facilitated a systematic examination of the research topic. 

The interview guide included both structured and open-ended questions. While not 

aiming for quantifiable data, these questions facilitated a systematic exploration of the 

phenomenon under investigation, enabling a rich and nuanced understanding. Emphasis 

was placed on open-ended inquiries to delve into the complexities of participants' 



45 

 

experiences, allowing for a comprehensive analysis that extends beyond numerical 

comparison. In addition, the open-ended questions encouraged participants to share 

detailed perspectives, experiences, and opinions, enriching the understanding of 

challenges and potential areas for improvement in leadership during digital 

transformation. 

The selection of the interview guide as the measurement instrument was deemed 

appropriate, providing a comprehensive approach to gathering data in line with the 

research objectives. 

3.8 PROCEDURE FOR DATA COLLECTION 

To acquire insights into leadership during digital transformation within the SA banking 

sector, a purposive sampling technique was employed (Patton, 2015). Personalised 

communication through emails and phone calls-initiated contact with potential 

participants. While networking was utilised for participant recruitment, the researcher 

took care to prevent familiarity from influencing the interview process by maintaining an 

objective stance. This was achieved by using a standardised interview protocol, ensuring 

questions were consistently asked in a neutral manner, and by recording and transcribing 

interviews verbatim for accurate analysis. In addition, the researcher engaged in regular 

reflection and consultation with colleagues to mitigate potential biases. During the initial 

contact, the study's purpose and significance were explained, and the expected time 

commitment for participation communicated. Participants' knowledge and expertise were 

emphasised, and the semi-structured interviews were conducted all in person. Prior to 

the interviews, participants' consent to audio-record the sessions were obtained, 

ensuring accurate data capture for later transcription and analysis, with due respect to 

privacy and confidentiality. The interview guide, detailed in Annexure E, outlined specific 

open-ended questions aligned with the study's objectives. A pilot study was conducted 

involving a small subset of two participants meeting inclusion criteria. This aimed to 

evaluate question effectiveness, identify potential issues, and ensure a robust data 

collection process. Findings informed adjustments to the interview guide, optimised 

subsequent data collection, and addressed any logistical challenges, contributing to the 

study's overall validity. 



46 

 

3.9 DATA ANALYSIS APPROACH AND INTERPRETATION 

To analyse the collected data and derive meaningful insights, a thematic analysis 

approach was employed, well-suited for exploring and interpreting qualitative data 

(Braun & Clarke, 2019). Thematic analysis involved identifying patterns, themes, and 

categories within the data, providing a comprehensive understanding of the research 

topic (Braun & Clarke, 2019). The analysis process commenced with transcribing the 

audio recordings of the interviews verbatim, serving as the primary data source. 

Transcriptions were carefully reviewed and cross-checked with the original recordings 

for accuracy and reliability. A systematic coding process was then employed, generating 

initial codes by identifying relevant units of meaning within the transcriptions (Saldaña, 

2021). These codes were refined and organised into themes, representing recurring 

patterns or topics within the data. 

Themes were further examined and compared across the entire dataset to ensure 

consistency and coherence. Attention was given to both manifest and latent content, 

capturing explicit surface-level meaning and underlying implicit meanings and 

interpretations (Braun & Clarke, 2019). The coding and theme development process 

were conducted meticulously by the researcher, ensuring consistency. Any 

discrepancies or uncertainties in coding or theme identification were carefully reviewed. 

Interpretation of the identified themes involved examining relationships, connections, 

and implications within and across the themes (Braun & Clarke, 2021). The researcher 

critically analysed the data to gain a deep understanding of leadership challenges and 

opportunities during digital transformation within the SA banking sector. Interpretations 

were guided by research objectives and relevant theoretical frameworks. In addition, the 

study sought to analyse all data via the Microsoft Power BI tool. This tool, an assembly 

of software services, apps, and connectors, transformed unrelated data sources into 

coherent, visually immersive, and interactive insights (Microsoft, 2023). Incorporating 

Microsoft Power BI complemented the thematic analysis, providing an additional layer of 

visual and interactive representation to enhance the overall understanding and 

presentation of the study's findings. 

3.10 LIMITATIONS OF THE STUDY 

While efforts were made to conduct a comprehensive and insightful study, certain 

limitations are acknowledged. The study focused on a specific bank in the SA banking 



47 

 

sector, limiting the generalisability of findings to a broader context. The relatively small 

sample size of eleven participants may impact the wider applicability of the study's 

findings. The research was also constrained by the specific time frame allocated for data 

collection and analysis, potentially limiting the depth of exploration. 

3.11 QUALITY ASSURANCE 

To ensure the robustness and trustworthiness of the findings, key aspects of 

transferability, dependability, credibility, and confirmability were considered. Meticulous 

qualitative research methods were incorporated, adhering to established guidelines, 

aiming to provide valuable insights into leadership practices and challenges in the 

context of digital transformation. 

In terms of transferability, the research offered detailed descriptions of the research 

context, participants, and data collection methods. By presenting a comprehensive 

picture of the study's settings and participants, readers could assess the potential 

applicability of the findings in similar contexts, enhancing the generalisability of the 

study's insights within the SA banking sector (Nowell et al., 2017). To establish 

dependability, documentation of the research process was ensured. This included 

transparently documenting the research design, data collection procedures, and analysis 

techniques (Creswell & Creswell, 2018). By maintaining a thorough record, the study 

aimed to enable peer scrutiny and potential replication, promoting consistency and 

reliability in the research process and outcomes (Creswell & Poth, 2018). 

The credibility of this study was reinforced by prioritising research validity, as advocated 

by Yin (2016). A study is considered valid when the data interpretation aligns accurately 

with the studied work (Yin, 2016). To achieve this, meticulous attention was given to 

formulating interview questions that facilitated the collection of rich and relevant data. 

Each question in the interview guide was carefully crafted to address specific problems, 

ensuring their effectiveness in measuring the constructs under investigation. These 

methodological approaches played a crucial role in establishing the accuracy of the 

qualitative research, guaranteeing that the findings authentically reflected the 

phenomenon under study (Creswell & Creswell, 2018)."The pilot study, a crucial 

precursor to the main research, aimed to enhance the credibility of the study by refining 

the research design, data collection methods, and analysis approach (Yin, 2016). 

Through a small subset involving two participants meeting inclusion criteria, the pilot 



48 

 

study provided valuable insights that influenced adjustments to the interview guide and 

optimised subsequent data collection. This iterative process ensured the robustness of 

the study design and its alignment with the investigation of leadership during digital 

transformation in the SA banking sector. 

Confirmability was achieved through reflexive practices by the researcher. Critical 

reflection on personal biases, assumptions, and preconceived notions that may influence 

data interpretation was undertaken. By adopting a reflexive stance and acknowledging 

the potential influence of the researcher on the research process, the study aimed to 

enhance the objectivity and neutrality of the findings (Creswell & Poth, 2018). 

3.12 ETHICAL CONSIDERATIONS 

This research adhered to ethical guidelines, ensuring the rights, privacy, and well-being 

of participants were protected (Bryman, 2016). Informed consent was obtained from all 

participants, emphasising voluntary participation, confidentiality, and the right to 

withdraw at any stage without repercussions. Prior to data collection, participants were 

provided with detailed information about the research purpose, procedures, potential 

risks, and benefits, facilitating their informed decision-making process. Consent forms 

were distributed and collected before each interview, underscoring participants' 

willingness to participate. In addition, participants were assured of the confidentiality and 

anonymity of their responses, with data reported in aggregate form to prevent 

identification. 

To address potential power imbalances, the researcher-maintained transparency and 

openness during interactions with participants, fostering an environment conducive to 

honest and uninhibited responses (Bryman, 2016). Furthermore, the researcher, drawing 

on professional experience, ensured that participants' perspectives were valued, 

acknowledged, and respected throughout the research process. Any potential conflicts 

of interest were proactively managed, and participants were informed of the researcher's 

role and affiliations. In the subsequent chapter, the findings of the study will be presented 

and discussed in detail, providing a nuanced understanding of leadership dynamics 

during digital transformation in the SA banking sector. 

 

 



49 

 

CHAPTER 4. FINDINGS  

4.1 INTRODUCTION 

This chapter is dedicated to unveiling the findings obtained from a qualitative exploration 

of leadership perspectives amid digital transformation within the SA banking sector. The 

overarching goal is to clarify insights gathered from semi-structured interviews with 

senior executives, avoiding detailed discussions that will be reserved for Chapter 5 

Discussion of Results. 

The research questions guiding this qualitative study are derived from the propositions 

and interview questions outlined in Chapter 3. 

Proposition 1 (P1) - P1 – The success of digital transformation in SA banking relies on 

leaders inspiring and motivating employees to adopt new technologies. 

Research Question 2 - What are the best practices for leading employees through the 

changes brought on by Digital Transformation? 

Proposition 2 (P2) - Leading through digital transformation requires transformational 

leadership, motivat