DIGITAL TRANSFORMATION AND INCLUSIVE LEADERSHIP: A QUANTITATIVE ANALYSIS OF ITS IMPACT ON THE PRODUCTIVITY OF LATIN AMERICAN SMES

Abstract

This article synthesizes recent quantitative evidence (2020–2025) on the relationship between digital transformation (DT), inclusive leadership (LI), and SME productivity in Latin America and the Caribbean (LAC). Based on meta-analyses and institutional reports, we show: (1) a positive and moderate effect of digital technologies on business performance (Oduro et al., 2023); (2) systematic effects of LI on key outcomes at the people level—task performance, organizational citizenship, creativity, innovation, and voice—mediated by psychological safety and empowerment (Li et al., 2024); and (3) significant digital adoption gaps in LAC SMEs that limit productivity gains (OECD/CAF/SELA, 2024; ECLAC, 2024; IDB, 2022). An integrative model is discussed in which DT affects productivity through digital capabilities and management practices, and the LI acts as a catalyst that converts digital investment into operational and innovation improvements.