Background: In the current context of rapid digitalization, one common way for companies to stay competitive is to incorporate digital technologies into their organizations. This process not only includes the adoption of new technologies but also significantly impacts organizational structures, business models, and leadership styles. As organizations incorporate digital tools, leadership must evolve to manage these changes effectively. 

Purpose: This thesis aims to explore the transformation of leadership styles within organizations undergoing digital transformation. Specifically, it seeks to identify the key factors influencing these changes and the subsequent impact on leadership effectiveness. It addresses the research gap by answering the following research questions: 

o RQ1: What are the factors driving changes in LS in today’s digitalized context?  

o RQ2: How does the integration of digital tools in the firm affect LS? 

Method: The thesis uses a qualitative research design approach with multiple-case study methodology, incorporating semi-structured interviews of ten professionals within a current digital transformation. Data is analyzed using a grounded theory approach to find insights. 

Conclusion: The findings reveal that digital transformation significantly changes communication, collaboration, and decision-making processes among leaders. Digital tools have accelerated a shift towards more agile, adaptable, and data-driven leadership styles. The study also indicates a shift towards a more strategic and less micro-managing approach, where leaders set clear objectives and empower team members to take responsibility for their tasks, fostering a culture of autonomy and increased efficiency.