Abstract
This paper has analysed the impact of leadership styles on the digital transformation in small Australian businesses. The research was conducted in three aspects including the influence of leadership behaviours on employee engagement, the problems that arise during the digital transformation, and the strategies that the leaders have to overcome those issues.
The secondary data only were used, based on peer-reviewed journals, governmental publications, industry reports, and professional journals of 2019-2024. The sources were found in Google Scholar, ResearchGate, and Scopus with the help of such key words as
leadership styles, digital transformation, and Australian small businesses. This guaranteed that relevant evidence was included and it was easy to determine the general patterns and gaps. A qualitative documentary thematic analysis was conducted on peer-reviewed and policy literature based on the six steps of Braun and Clarke (2006) framework Using Excel information was coded and organised into themes in systematic way. The topics included leadership strategies, its influence on motivation, obstacles to digital adoption, and the approaches that ensured successful change.
Transformational and democratic leadership styles had close associations with increased employee motivation, trust, innovation, and technological change openness. Low engagement and resistance on the other hand were linked to autocratic leadership. Leaders who embraced the participatory approach to decision-making, ongoing training, and gradual application of technology dealt with these issues better. The synthesised findings underline that the digital transformation is a technical and cultural process, the role of leadership is one of the most crucial.