International Research & Citation Index
IRCI Article ID: IRCI-AR-0000001218

Digital Leadership and Organizational Performance: The Mediating Role of Employee Innovation Implementation

Authors:
Omar Salem Seed GebreelSamuel Kwabla Segbefia

Journal: International Journal of Social Science, Education, Communication and Economics (SINOMICS Journal)

Publication: 2025-10-31 · Vol. 4 No. 4 · pp. 410–420

DOI: 10.47353/sj.v4i4.534

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Abstract
Digital transformation has moved beyond the simple adoption of information technology and has become a fundamental organizational process affecting leadership, employee behavior, innovation, and performance. This study examines the relationship between digital leadership and organizational performance by investigating employee innovation implementation as an intervening mechanism. Drawing on the Dynamic Capability View, digital leadership is conceptualized as a strategic capability that enables organizations to mobilize technological resources, stimulate employee experimentation, and facilitate the implementation of new ideas. A quantitative research design is proposed using a structured questionnaire administered to employees in digitally transforming organizations. The hypothesized relationships are tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The proposed model examines both the direct effect of digital leadership on organizational performance and its indirect effect through employee innovation implementation. The study contributes to digital leadership literature by distinguishing innovation implementation from the broader concept of innovative behavior and by explaining how employee-generated ideas can be translated into organizational value.


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Authors
Omar Salem Seed Gebreel
Affiliation: , Higher Institute of Comprehensive Professions–Susa, Libya Author Origin : Libya
Samuel Kwabla Segbefia
Affiliation: , Department of Business and Social Sciences Education, University of Cape Coast, Ghana Author Origin : Ghana


References
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Avolio, B. J., Kahai, S. S., & Dodge, G. E. (2001). E-leadership: Implications for theory, research, and practice. The Leadership Quarterly, 11(4), 615–668. https://doi.org/10.1016/S1048-9843(00)00062-X
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10, 1938. https://doi.org/10.3389/fpsyg.2019.01938
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639
Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157. https://doi.org/10.1111/isj.12153
Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434
Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71, 233–341. https://doi.org/10.1007/s11301-020-00185-7
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018
Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 104. https://doi.org/10.3390/joitmc6040104
Sagbas, M., Oktaysoy, O., Topcuoglu, E., Kaygin, E., & Erdogan, F. A. (2023). The mediating role of innovative behavior on the effect of digital leadership on intrapreneurship intention and job performance. Behavioral Sciences, 13(10), 874. https://doi.org/10.3390/bs13100874
Singh, A., Klarner, P., & Hess, T. (2020). How do chief digital officers pursue digital transformation activities? Long Range Planning, 53(6), 101890. https://doi.org/10.1016/j.lrp.2020.101890
Soto-Acosta, P. (2020). COVID-19 pandemic: Shifting digital transformation to a high-speed gear. Information Systems Management, 37(4), 260–266. https://doi.org/10.1080/10580530.2020.1814461
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of sustainable enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Teece, D. J., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13–35. https://doi.org/10.1525/cmr.2016.58.4.13
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
AlNuaimi, B. K., Singh, S. K., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, 636–648. https://doi.org/10.1016/j.jbusres.2022.03.038 DOI: https://doi.org/10.1016/j.jbusres.2022.03.038
Avolio, B. J., Kahai, S. S., & Dodge, G. E. (2001). E-leadership: Implications for theory, research, and practice. The Leadership Quarterly, 11(4), 615–668. https://doi.org/10.1016/S1048-9843(00)00062-X DOI: https://doi.org/10.1016/S1048-9843(00)00062-X
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10, 1938. https://doi.org/10.3389/fpsyg.2019.01938 DOI: https://doi.org/10.3389/fpsyg.2019.01938
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639 DOI: https://doi.org/10.1111/joms.12639
Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466 DOI: https://doi.org/10.1016/j.ijinfomgt.2021.102466
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157. https://doi.org/10.1111/isj.12153 DOI: https://doi.org/10.1111/isj.12153
Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434 DOI: https://doi.org/10.1016/j.im.2021.103434
Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71, 233–341. https://doi.org/10.1007/s11301-020-00185-7 DOI: https://doi.org/10.1007/s11301-020-00185-7
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018 DOI: https://doi.org/10.1016/j.respol.2019.03.018
Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 104. https://doi.org/10.3390/joitmc6040104 DOI: https://doi.org/10.3390/joitmc6040104
Sagbas, M., Oktaysoy, O., Topcuoglu, E., Kaygin, E., & Erdogan, F. A. (2023). The mediating role of innovative behavior on the effect of digital leadership on intrapreneurship intention and job performance. Behavioral Sciences, 13(10), 874. https://doi.org/10.3390/bs13100874 DOI: https://doi.org/10.3390/bs13100874
Singh, A., Klarner, P., & Hess, T. (2020). How do chief digital officers pursue digital transformation activities? Long Range Planning, 53(6), 101890. https://doi.org/10.1016/j.lrp.2020.101890 DOI: https://doi.org/10.1016/j.lrp.2019.07.001
Soto-Acosta, P. (2020). COVID-19 pandemic: Shifting digital transformation to a high-speed gear. Information Systems Management, 37(4), 260–266. https://doi.org/10.1080/10580530.2020.1814461 DOI: https://doi.org/10.1080/10580530.2020.1814461
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of sustainable enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640 DOI: https://doi.org/10.1002/smj.640
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007 DOI: https://doi.org/10.1016/j.lrp.2017.06.007
Teece, D. J., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13–35. https://doi.org/10.1525/cmr.2016.58.4.13 DOI: https://doi.org/10.1525/cmr.2016.58.4.13
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:73.0.CO;2-Z
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022 DOI: https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003 DOI: https://doi.org/10.1016/j.jsis.2019.01.003
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001 DOI: https://doi.org/10.1016/j.lrp.2018.12.001
AlNuaimi, B. K., Singh, S. K., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, 636–648. https://doi.org/10.1016/j.jbusres.2022.03.038
Avolio, B. J., Kahai, S. S., & Dodge, G. E. (2001). E-leadership: Implications for theory, research, and practice. The Leadership Quarterly, 11(4), 615–668. https://doi.org/10.1016/S1048-9843(00)00062-X
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10, 1938. https://doi.org/10.3389/fpsyg.2019.01938
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639
Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157. https://doi.org/10.1111/isj.12153
Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434
Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71, 233–341. https://doi.org/10.1007/s11301-020-00185-7
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018
Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 104. https://doi.org/10.3390/joitmc6040104
Sagbas, M., Oktaysoy, O., Topcuoglu, E., Kaygin, E., & Erdogan, F. A. (2023). The mediating role of innovative behavior on the effect of digital leadership on intrapreneurship intention and job performance. Behavioral Sciences, 13(10), 874. https://doi.org/10.3390/bs13100874
Singh, A., Klarner, P., & Hess, T. (2020). How do chief digital officers pursue digital transformation activities? Long Range Planning, 53(6), 101890. https://doi.org/10.1016/j.lrp.2020.101890
Soto-Acosta, P. (2020). COVID-19 pandemic: Shifting digital transformation to a high-speed gear. Information Systems Management, 37(4), 260–266. https://doi.org/10.1080/10580530.2020.1814461
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of sustainable enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Teece, D. J., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13–35. https://doi.org/10.1525/cmr.2016.58.4.13
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
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