Enterprise AI Analysis
Technological knowledge, soft skills and management & leadership skills: three pillars for the digitally competent manager
The rapid digitalization of organizations necessitates a re-evaluation of managerial competencies to effectively lead virtual and hybrid teams. This paper introduces the concept of Digital Managerial Competencies (DMC), a comprehensive framework delineating the specific skills and knowledge managers require to navigate the digital workplace successfully. Building on the DigComp framework and grounded in a systematic literature review of 48 peer-reviewed studies, the research identifies three core dimensions of DMC: Technological Knowledge, Soft Skills, and Management & Leadership Skills, comprising 18 specific competencies. The study employs inductive content analysis to develop and validate the model, further enriched through focus group feedback with practitioners. The findings contribute to theory by offering a multidimensional, context-dependent understanding of digital managerial effectiveness and practical guidance for developing targeted training programs. The DMC framework provides a valuable tool for scholars and organizations to assess, develop, and leverage managerial competencies in the evolving digital landscape, ultimately enhancing virtual team performance and organizational outcomes.
Executive Impact Overview
This study offers a new construct, Digital Managerial Competencies (DMC), which integrates technological knowledge, soft skills, and management/leadership skills into a cohesive framework. It emphasizes a holistic approach to effective digital management, moving beyond traditional models by focusing on advanced technological knowledge, overlooked soft skills (e.g., emotional intelligence, problem-solving), and digitally tailored leadership skills. This framework is vital for organizations to assess, develop, and leverage managerial capabilities, driving innovation and resilience in the digital workplace, applicable across diverse sectors like IT, finance, healthcare, and public services, ultimately enhancing virtual team performance and organizational outcomes.
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Managerial Competencies Identified
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Publications Reviewed
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Dimensions of DMC
Deep Analysis & Enterprise Applications
Select a topic to dive deeper, then explore the specific findings from the research, rebuilt as interactive, enterprise-focused modules.
Introduction
The ongoing digitalization of organizations has profoundly transformed how managers and team members collaborate, communicate, and coordinate (e.g., Banks et al. 2022). While it is well established that reliance on digital media—such as email, chat systems, and online platforms—enhances flexibility and connectivity, it also increases the complexity of group processes and managerial responsibilities (Larson and DeChurch 2020). Existing research recognizes that managers serve as role models within organizations, setting behavioral standards that influence employee performance (Dirani et al. 2020). Therefore, in the modern digital workplace, it is essential for managers to establish effective structural frameworks for technology use, stay informed about evolving technological environments, and possess the appropriate competencies (e.g., Contreras et al. 2020; Cortellazzo et al. 2019).
Conceptual Background
This section delves into the foundational concepts of managers in virtual environments and digital competencies, setting the stage for the proposed Digital Managerial Competencies (DMC) framework. It highlights how technology profoundly shapes work organization and performance (Landers and Marin 2021), with digital tools facilitating virtual team collaboration (Schwarzmüller et al. 2018). However, the effectiveness of these tools depends on their alignment with team needs and managerial practices (Brown et al. 2021), challenging deterministic views of technology (Parks and Floyd 1996). Managers play a crucial role in shaping technology use, fostering understanding, and creating a supportive digital environment (Schmidt 2014), which includes selecting and implementing appropriate tools (Swart et al. 2022). Challenges for virtual managers include providing clear direction (Morrison-Smith and Ruiz 2020), fostering effective digital collaboration (Dirani et al. 2020), and keeping pace with rapidly evolving technologies (Nowacka and Rzemieniak 2022). The section also addresses the inconsistent definition of "digital competence" in organizational contexts (Murawski and Bick 2017), differentiating it from digital skills and literacy, and critiques existing frameworks for managers as often too specific or broad.
Methodology
To develop the Digital Managerial Competencies (DMC) model, a systematic literature review was conducted using a transparent and reproducible methodology (Tranfield et al. 2003). The search, executed in the Web of Science database, used terms like "digital competenc*", "digital skill*", and "manager*", "leader*", "leadership skill*", "management skill*", etc., resulting in an initial 3,976 hits. The scope was narrowed to journal articles, review articles, and conference papers in English, specifically within the Business and Management subject areas. Only articles from journals ranked at least 2 in the 2024 Academic Journal Guide (AJG) were considered. This process yielded 91 papers, which were then thoroughly read to identify 48 relevant studies focusing on individual-level managerial competencies. The analysis then moved to an inductive qualitative content analysis (Dyckhoff and Souren 2023), suitable for fragmented research areas (Vaismoradi et al. 2013). This involved conceptualizing data into categories and sub-categories by coding textual segments (Singh et al. 2007), ensuring codes were developed directly from the data (Vears and Gillam 2022). This systematic approach aimed to minimize bias and enhance the rigor and practical applicability of the resulting DMC framework.
Findings
The analysis of the 48 reviewed papers revealed several key insights into Digital Managerial Competencies (DMC). Over half (27) of the papers were published after 2020, highlighting the topicality of the subject. Publications spanned from 2000 to 2024, with Human Resource Development International, Employee Relations, Journal of Business Research, and Journal of Organizational Change Management being prominent sources. Empiricism dominated the research, with 30 papers (63%) employing methods like surveys (13 papers), interviews (8 papers), and case studies (4 papers) to explore digital work, leadership, and competencies. Quantitative analysis was used in 4 papers. The remaining 18 papers were conceptual, focusing on synthesizing knowledge and developing frameworks. The inductive content analysis process involved systematically extracting competency statements, coding them, and grouping them into 19 main categories, such as 'self-assessment and self-development' and 'goal setting'. This iterative process, including inter-coder reliability checks, eventually refined the categories into three overarching dimensions: Technological Knowledge, Soft Skills, and E-Leadership Skills, which were further validated and refined through focus group discussions with practitioners from Finland, leading to the final model of 18 specific competencies across these three dimensions.
Discussion and Conclusion
The proposed Digital Managerial Competencies (DMC) model delineates three core dimensions: Technological Knowledge, Soft Skills, and Management & Leadership Skills. Each dimension contains critical competencies essential for managers in digital workplaces. Technological Knowledge covers understanding digital systems, hardware, software, information management, digital content, and advanced insights like AI and cybersecurity (Ferràs-Hernández 2018; Schiuma et al. 2024). Soft Skills encompass personal and interpersonal attributes such as self-assessment, continuous learning (Burke et al. 2006; Cascio 2019), curiosity, open-mindedness (Kinkel et al. 2023), ethical considerations (Hedenus et al. 2021), creativity, problem-solving, communication (Chaudhary et al. 2022), and emotional intelligence (Loyless 2023). Management & Leadership Skills focus on strategic and operational aspects, including data-driven decision making (Banerjee-Batist et al. 2022), strategic vision, change management (Tuschner et al. 2022), self-leadership, inspiring others, managing diverse teams (Cascio 2000), and trust-building (Verburg et al. 2013). Synthesizing these, DMC is defined as the integrated set of knowledge, skills, and abilities enabling managers to lead, innovate, and adapt in digitally driven organizational contexts, embodying a holistic framework that connects technology, people, and strategy.
Theoretical Contribution
This paper introduces Digital Managerial Competencies (DMC) as a novel construct, offering significant theoretical contributions to the literature on managerial effectiveness in virtual environments. It addresses a critical gap by providing a systematic, reliable, and valid measurement tool for digital-age managerial competencies. Drawing from the DigComp framework, the study emphasizes that managers' utilization and promotion of technology are key factors influencing outcomes (Centeno et al. 2019). The research concludes that DMC is a multidimensional construct comprising three closely related competencies: (a) Technological Knowledge, involving a thorough understanding of digital tools and processes; (b) Soft Skills, encompassing interpersonal and intrapersonal abilities for effective communication, teamwork, problem-solving, and ethical decision-making in digital contexts; and (c) Management & Leadership Skills, providing strategic and organizational capabilities for guiding digital transformation. This integrated approach highlights the interconnectedness of these dimensions, advancing existing conceptualizations of managerial competencies by emphasizing the seamless blend of technical literacy, interpersonal skills, and strategic acumen, particularly in advanced technological knowledge and often-overlooked soft skills.
Practical Implications
This study provides crucial evidence-based insights for practitioners, addressing the widespread feeling among managers of being unprepared for virtual leadership (Development Dimensions International Inc. 2023). It argues against merely acquiring digital tool knowledge, emphasizing the need to create supportive environments, foster enthusiasm for new technologies, and establish reliable structures. A key practical implication is the synergy between technological knowledge and soft skills; for instance, combining digital tool understanding with emotional intelligence and communication skills allows managers to create inclusive, transparent, and adaptive digital work environments, better navigating remote and hybrid team complexities. The model's inclusion of tailored management and leadership skills offers actionable insights for designing targeted training programs. Organizations can use this framework to identify specific competency gaps—in areas like data-driven decision-making, change management, or trust-building—and develop customized interventions. This ensures digital transformation initiatives are supported by capable leaders who can motivate teams, manage diversity, and build trust in digital settings, providing a practical, hands-on framework to leverage digital technologies fully.
Limitations and Future Research Directions
This study provides a significant foundation for understanding digital managerial competencies but acknowledges limitations. First, relying solely on Web of Science publications (AJG ranked 2+) may exclude valuable insights from emerging journals or gray literature. Second, the model's 18 specific competencies might overlook other crucial emergent skills in digital innovation, data analytics, or regulatory compliance, and may require further refinement as the dynamic digital environment evolves. Future research should empirically validate the model in real-world settings through qualitative and quantitative studies, including longitudinal research to track competency development and its correlation with organizational performance. Exploring the interplay between competencies, the underlying factor structure (via factor analysis), and their relative importance across different management positions is also crucial. Further studies should investigate the model's applicability across various sectors (healthcare, finance, education, technology), the impact of cultural and regional factors on competency perception, and how new technologies (AI, VR) and remote work influence required skill sets, particularly concerning team dynamics and communication.
Enterprise Process Flow: Systematic Literature Review Process
Publications identified through Web of Science database search (k = 3,976)
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Excluded publications (k = -171 for Doc Type, -912 for Language, -2576 for Subject)
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Remaining publications (k = 317 after initial filters)
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Further criteria applied (k = -226 for AJG rating, -43 for Focus)
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Final sample of publications after selection process (k = 48)
2022
Most Active Publication Year (10 papers)
| Journal Name | Number of Publications |
|---|---|
| Human Resource Development International | 4 |
| Employee Relations | 3 |
| Journal of Business Research | 3 |
| Journal of Organizational Change Management | 3 |
| Academy of Management Perspectives | 2 |
| Public Administration Review | 2 |
| Technological Forecasting and Social Change | 2 |
| Rest appeared less than two times | (Various) |
Enterprise Process Flow: Competency Development Process
Competency Statements (e.g., "To recognize personal strengths...")
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Initial Coding (e.g., "Self-Awareness of Skills")
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Categorization (e.g., "Self-Assessment")
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Main Categories Development (e.g., "Self-Assessment and Self-Development")
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Refinement & Validation (Inter-coder reliability, focus groups)
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Final DMC Model (3 dimensions, 18 competencies)
| Dimension | Initial Categories | Revised Categories |
|---|---|---|
| Technological Knowledge |
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| Soft Skills |
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| E-Leadership Skills / Management & Leadership Skills |
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Digital Managerial Competencies (DMC) Definition
The study defines Digital Managerial Competencies (DMC) as the integrated set of knowledge, skills, and abilities that enable managers to effectively lead, innovate, and adapt in digitally driven organizational contexts. DMC embodies not only technical knowledge but also the soft skills and strategic management and leadership qualities necessary to harness digital opportunities while managing associated risks and challenges. It signifies a holistic competency framework that prepares managers to operate at the intersection of technology, people, and strategy.
Distinctive Contributions:
- Explicitly integrates three interrelated dimensions: technological knowledge, soft skills, and management and leadership skills.
- Emphasizes advanced technological knowledge (AI-specific competencies, application modification, digital environment customization).
- Integrates soft skills often overlooked in purely technical frameworks (emotional intelligence, problem-solving, creativity).
- Includes management and leadership skills tailored to digital contexts (data-driven decision making, change management, managing diversity, trust building).
- Focuses on the interplay between these dimensions, highlighting that technical skills alone are insufficient without soft skills and leadership.
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Your 5-Phase Implementation Roadmap
A strategic blueprint to integrate Digital Managerial Competencies into your enterprise, leveraging AI for maximum impact.
Phase 1: Current State Assessment & Gap Analysis
Utilize AI-powered tools to assess existing managerial digital competencies across all levels. Identify critical gaps in technological knowledge, soft skills, and leadership capabilities relevant to your organizational context. This phase involves surveys, performance data analysis, and expert interviews, benchmarked against the DMC framework.
Phase 2: Tailored AI-Driven Training & Development
Design and implement bespoke training programs, leveraging adaptive AI platforms that personalize learning paths for each manager based on identified gaps. Focus on developing advanced technological knowledge (e.g., AI literacy, cybersecurity awareness), critical soft skills (e.g., digital communication, emotional intelligence), and modern leadership techniques (e.g., data-driven decision-making, virtual team management).
Phase 3: Pilot Implementation & Feedback Loop
Launch pilot programs with select teams or departments to apply new DMC in real-world digital projects. Collect continuous feedback using AI-driven sentiment analysis and performance monitoring tools. Iterate on training content and managerial practices based on real-time insights to ensure optimal effectiveness and adoption.
Phase 4: Full-Scale Integration & Cultural Shift
Roll out enhanced DMC training and practices across the entire organization. Foster a culture of continuous digital learning, ethical AI use, and adaptive leadership. Integrate DMC metrics into performance reviews and career development plans, reinforcing their strategic importance.
Phase 5: Continuous Optimization & Future-Proofing
Establish ongoing monitoring of digital trends and emerging technologies (e.g., VR, advanced AI applications) to proactively update DMC requirements. Implement a system for regular competency audits and refreshment programs, ensuring managers remain digitally competent and agile in an ever-evolving technological landscape, safeguarding long-term organizational success.
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