The Mediating Role of Firm Innovatıon Performance in The Impact of Digital Leadership on Employee Performance: Evidence From Startups

This study was conducted with employees of start-up companies established to operate in different technological fields such as IT, hardware, software, communication and cyber security. The research aims to examine the direct and indirect impacts of digital leadership and firm innovation performance on employee performance through empirical analysis. In this context, a cross-sectional study was conducted. A mediating analysis was conducted using empirical data. Within the framework of the research, digital leadership served as an independent variable, employee performance as a dependent variable and firm innovation performance as a mediating construct. The dataset utilized for analysis comprised responses from 184 employees selected from diverse start-up enterprises in Gaziantep, selected through purposive sampling techniques. Employing the Process Macro methodology for analysis, the study revealed that both digital leadership and firm innovation performance exert direct influence on employee performance. Furthermore, the analysis established a significant direct association between digital leadership and firm innovation performance. The outcomes underscored the substantial impact of both digital leadership and firm innovation performance on the enhanced effectiveness of employees within start-up’ entities. Crucially, the investigation indicated that innovation performance of the firm holds the potential to bolster employee performance independently of digital leadership. As valuable long-term assets, employees significantly contribute to a firm’s sustained viability, bringing forth their creative ideas, productivity acumen, and innovative capabilities. Hence, the possession of digital competencies by managers and the cultivation of the firm's innovation potential emerge as positive catalysts influencing employees within corporate settings. Especially in start-up’s, the leader's digital skills and the firm's focus on developing innovative performance increase employee performance.