Transformational leaders or algorithms: Who really drives public digital transformation?

Authors: (Left to right) Kaouther Korbi, Higher Institute of Accounting and Business Administration (ISCAE), Tunisia, and, Amel Boussaidi, Higher Institute of Accounting and Business Administration (ISCAE), Tunisia

 Imagine a Tunisian civil servant grappling with a complex digital case: trust their inspiring superior or an algorithm? In our research conducted at the Tunisian Ministry of Higher Education, we pose a central question: can transformational leadership with visionary inspiration, personalised support, and intellectual stimulation (Bass et Avolio, 1994) drive digital transformation?

Why transformational leadership remains essential

Transformational Leadership rests on four interconnected components: idealised influence, inspirational motivation, intellectual stimulation and individualised. Adapted to today's digital and environmental demands, these qualities excel in public contexts like the Tunisian administration. Our analysis of 280 public agents shows this approach significantly boosts digital innovation capabilities, outperforming conventional methods by driving real tool adoption over mere implementation.

Without human guidance, technology stalls. Agents resist complex systems lacking contextual support, amplified by entrenched bureaucratic norms. In our study at the Ministry of Higher Education, results show that managers practicing transformational leadership by explaining the purpose of tools, supporting digital skills, and recognising efforts achieve significantly higher engagement levels, facilitating the adoption of digital solutions in daily work. This engagement acts as a lever: more motivated agents propose improvements, experiment with new features, and help anchor digital transformation durably in the administration.    

Employee engagement: The decisive link

No leader succeeds alone: agent engagement their zeal for collective initiatives, experimentation, and ingenuity, pivots digital progress (Teece et al., 2007). Change receptivity amplifies leadership impact in Tunisia's rigid bureaucracy, acting as a multiplier. 

Obstacles persist

Valid fears of automation-induced job losses, technical skill gaps, and distrust of imposed reforms (Sverdlik et al., 2024). Transformational leaders dissolve these through attentive dialogue, practical training, and individual recognition. A regional delegate notes aptly: "Targeted support from a reliable guide shifts agents from paper routines to digital fluency instantly, freeing time for citizen-focused tasks". These dynamics convert skeptics to champions, creating a virtuous cycle of innovation.

AI's role: Humans hold the key

Algorithms excel at precise repetition but erode relational bonds, breeding distrust and inertia-unlike human leaders' contextual spark. Global evidence shows pure AI supervision fails where inspiring direction embeds tech in meaningful narratives. Algorithms cannot replicate the trust - building essential for change.

Tunisia's bold moves from "Tunisie Digitale 2020" to the Tunisian internet Agency (ATI) efforts stumbled not on tech sophistication but on preparation gaps. Our conceptual framework demonstrates how leadership strengthens digital transformation via employee engagement a robust statistical link validated in this transitional context (Bentaleb, 2024). Disengaged agents doom even elite systems, underscoring humans as the irreplaceable catalyst.

Practical measures 

Three evidence-based actions harmonise leadership and digital advances:

1. Trains engagingly: Workshops on digital tools with feedback certifications (Kotter, 1996).
2. Gauge real engagement: Monitor spontaneous usage rates, improvement suggestions, and processing time drops true depth indicators beyond surface metrics. Such dashboard reveal authentic transformation.
3. Blend smartly: Assign AI rote tasks like document sorting and alerts; free humans for inventive pursuits like public interface refinement, complexity resolution, and peer mentoring. This division maximises complementary strengths.

Building agile public sector

For policymakers, directors, and field managers: these strategies stem from hands-on Tunisian bureaucracy analysis during our field investigation, not abstractions. Implement them to forge human-machine synergy for enduring digital evolution. The result? A responsive administration serving citizens effectively.

Full analysis can be found here. 

References

• Bass, B.M. & Avolio, B.J. (1994). Improving Organizational Effectiveness through Transformational Leadership. Sage Publication, Inc.
• Bentaleb, D. (2024). Dynamics of leadership, interpersonal relations and commitment to change in the Tunisian healthcare context: Toward effective transformation of healthcare institutions?. Journal of Management Development, 43(4), 514-532.
• Kotter, J.P. (1996). Leading Change. Harvard Business Review Press.
• Sverdlik, N., Oreg, S., Paine, J. W., & Seo, M.-G. (2024). Activation and valence in responses to organizational change: Development and validation of the change response circumplex scale. Journal of Applied Psychology, 109(1), 135-155.
• Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
• World Bank. (2019). Tunisia Takes a Step Closer to a New Economy and Digital Transformation. 
   

Author Bios:

Kaouther Korbi is an Assistant Professor at the Higher Institute of Accounting and Business Administration (ISCAE), University Campus Manouba, Tunisia. She holds an HDR in Management and is affiliated with the Rigueur Research Laboratory, specialising in innovation, leadership, and strategic management.

Amel Boussaidi holds master's degrees in organisational management (2021, ISCAE Tunis) and financial/banking economics (2004, FSEG Tunis). She is currently pursuing a PhD in management at ISCAE, focusing on e-governance's role in good governance via transformational leadership, and is a member of the LIGUE laboratory.