Purpose The purpose of this paper is to examine theoretically and empirically what type of leadership facilitates e-business adoption in large manufacturing firms. The digital transformation of firms requires leadership that can promote the adaptive quality of organizational culture. Design/methodology/approach The authors conducted an empirical study using two key informants from a sample of 181 incumbent firms. Findings The authors find significant evidence that adaptive culture is the vehicle by which transformational leaders positively influence e-business adoption. Originality/value Given the digital economy’s external pressures, many e-business adoption processes fail due to organizational factors originating in leadership and its capability to change followers’ values, norms, and motivations. To solve this problem, the authors propose a model that explains how transformational leadership first plays a key role in changing characteristics of culture and then facilitates e-business adoption.
