Industry 4.0 drives enterprises to transform their capabilities especially in innovation and their capabilities to adapt with dynamic market. The capabilities can be fostered when the leader is oriented towards digital technology and market orientation. The role of digital leadership has gained attention for studies to develop innovation and dynamic capabilities based on market orientation. Studies have been conducted on dynamic capabilities with focus on the strategy, management and economic literature including the understanding of its driving key to success. However, the study on the role of digital leadership on the development of dynamic capability based on innovation capability and market orientation has not been intensively discussed. It is argued that the development of dynamic capability and innovation capability is strongly driven from a combination of digital leadership and market orientation. Data in this study is taken from a survey conducted on 88 Indonesian telecom-munication firms as a unit for analyses. The results show that digital leadership had a strong direct and indirect relationship with dynamic capability, however the strong path in developing capability is determined from the development of innovation capability that is driven from digital leadership based on market orientation. The finding reinforces the role of digital leadership as a critical influence on development of dynamic capability. Future studies are suggested to extend the research by exploring the research model to elaborate more on the impact of collaboration, leveraging a larger sample size and better statistical tools. A longitudinal study on the companies that implement the transformation based on dynamic capabilities is also recommended for future studies.

Digitalization plays a crucial role on current competitive market and it is associated with the utilization of digital technologies to change business model and to deliver new value-producing opportunities to the current business environment in an aim to move towards a digital business. Therefore, to address new business model, the purpose of this study is to explore the effect of digital customer experience and electronic word of mouth on sustainable performance of supply chain through brand image and supply chain image. In this study, data is collected from employees of Indonesian ICT companies. Clusters were formulated, and respondents were selected randomly. Three hundred and fifteen (315) responses were analysed with the help of structural equation modelling. The results indicate that digital customer experience and electronic word of mouth played positive role on promoting brand image. Brand image had positive role to promote supply chain image which influences positively on sustainable supply chain performance. Therefore, this study is important for Information Communication and Technology (ICT) industry to implement various e-commerce practices to promote digital customer experience and electronic word of mouth.