Digital leadership and employee performance in the public sector organizations: An investigation of organizational learning, dynamic capability and digital capability as mediation

Technological developments require public sector organizations to change by implementing a digital leadership style. Studies on the influence of digital leadership on the performance of employees working in the public sector still need to be completed. The results of Structural equation modeling employing GSCA show that digital leadership insignificantly affects employee performance directly. However, the impact of mediating dynamic capability, organizational learning, and digital capability is indirectly significant. Therefore, this study demonstrates that employee performance can be improved by optimizing dynamic capability, organizational learning, and digital capability. The managerial implication of this study shows that the essential digital competence owned by employees is to improve their performance. In addition, the employees also need to be equipped with dynamic capabilities to work optimally despite various changes in the organizational environment.