Managerial Readiness for Machine Learning Adoption: The Role of Digital Leadership and Organizational Culture in Bangladesh

Abstract

The capacity of managers to interpret technological opportunity, mobilise organisational resources and manage employees in digitally intensive change processes is becoming more of an issue for machine learning adoption. This study investigates the mechanism of digital leadership on the readiness of managers to use machine learning, in which the mediating and moderating effects of organizational culture are addressed. The research design adopted was quantitative and cross-sectional survey and the final sample for analysis was 360 managers, supervisors, executives, departmental heads and organizational decision makers. The measurement model, direct structural relationships, mediation and moderation, and explanatory power were assessed using structural equation modelling. The overall fit of the measurement model was good, reliability was acceptable, and discriminant validity was satisfactory although the average variance extracted for managerial readiness was average and slightly below the conventional threshold. Results of the structural model indicated that digital leadership had significant positive direct effect on the managerial readiness and that organizational culture had significant positive direct effect on the managerial readiness. The indirect effect of organizational culture was proved to be significant indicating mediation. Digital leadership and organizational culture also had a positive and significant interaction, which indicated that positive interaction of supportive culture reinforced the effect of digital leadership on readiness. The model accounted for 46.77% of the variance in managerial readiness. The results suggest that managerial readiness is an organizational capability that needs to be supported through leadership and is embedded in the organizational culture in order for successful machine learning adoption in contemporary organizations.