Due to market changes in the digital era, we argue that innovation based on dynamic capability is accelerated when aligned with market orientation. Digital leadership will significantly enable sensing market changes, seizing opportunities, and reconfiguring organizations. Previous studies on digital leadership, dynamic capability, and innovation management focus mainly on constructs, benefits, and implications. However, a study on the role of digital leadership based on dynamic capability in fostering innovation and the impact of market orientation have not been thoroughly explored, which is the aim of this study, taking market orientation as a moderating variable. Employing a quantitative methodology, data were collected through online questionnaires, distributed through email and messaging applications to a purposive sample of 88 senior managers of Indonesian telecommunication firms. The results reveal that digital leadership based on dynamic capability impacts directly and indirectly on developing innovation. Market orientation also plays an important role in accelerating innovation. Due to limitations in terms of research model, sample size, and time, further research using larger samples in other industries and countries should be undertaken.

The rapid technological changes in recent decades have created tremendous motivations among entrepreneurs to offer value added products and services. The complicated relationships between technology and innovation have caused to create the innovation management. Therefore, the key prominence of innovation in global village is to design new plans to manage and improve the innovation so that they could continue aiming at their superior national-organizational goals along with their growth and improvement path within their strategic plans. Many countries are interested in comparing themselves with other societies for enhancing their entrepreneurial awareness in an approximate rate and exploit their successful and positively affecting on development of the entrepreneurship innovation-management experiences and policies. In this research, the impact of each determinant of innovation management influencing on entrepreneurial activities in Iran and the members of Global Entrepreneurship Monitor between 2008 and 2011 is studied and evaluated using the structural equations.