Indonesia Telecommunication market is the early stage of digital era. Digital transformation is required by incumbent firms through developing dynamic capability that focus on Customer value and Operation model. Customer value reflects to market orientation, while operation model is related to the capabilities of firms in formulating innovation. In disruptive era, the development of dynamic capabilities is driven by digital leadership. The study on the role of digital leadership in relation between dynamic capability and digital leadership, market orientation and innovation capabilities has not been explored, hence this study has aims to assess the effective path in developing dynamic capability, whether it will be direct or indirect through market orientation or innovation capability driven by digital leadership. The study was conducted with questionnaire survey of 88 senior leader respondents, with statistical data analysis used Smart-PLS application. The result explained that digital leadership has influence significant impacts both  directly and indirectly through market orientation on  developing dynamic capability.  While the mediating role of innovation capability has not shown significant on relationship between dynamic capability and digital leadership.