Digital Leadership, Change Readiness, And Technology-Enabled Organizational Performance
DOI:
https://doi.org/10.67955/bsij.v1i3.25Keywords:
Digital Leadership, Change Readiness, Technology-Enabled Organizational Performance, Digital Transformation, PLS-SEMAbstract
The rapid advancement of digital technology necessitates organizational adaptation, yet digital leadership alone is insufficient to guarantee successful transformation. Internal factors, specifically change readiness, are crucial for effective technology adoption. This study investigates how digital leadership affects technology-enabled organizational performance, both directly and indirectly, through the mediating role of change readiness. Employing a quantitative cross-sectional survey approach, data were collected from 250 operational employees and middle managers across various sectors undergoing digital transformation. The conceptual model was evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS. The results indicate that digital leadership positively and significantly affects organizational change readiness and performance. Furthermore, change readiness significantly affects performance and serves as a complementary mediator between digital leadership and technology-enabled organizational performance. The structural model explains 55.4% of the variance in change readiness and 57.6% of the variance in organizational performance. Ultimately, this study concludes that effective digital leaders must proactively build collective organizational readiness to maximize the benefits of digital transformation initiatives.
References
Afdillah, M. R., M. Acmel Sabri, & Linawati, L. (2026). Does Strategic Management Approach Enhance Employee Performance through the Mediating Role of Commitment and Motivation? Business System & Innovation Journal, 1(1), 9–18. https://doi.org/10.67955/bsij.v1i1.4
Alakaş, E. Ö. (2024). Digital transformational leadership and organizational agility in digital transformation: Structural equation modelling of the moderating effects of digital culture and digital strategy. The Journal of High Technology Management Research, 35(2), 100517. https://doi.org/10.1016/j.hitech.2024.100517
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
Awad, J. A. R., & Martín-Rojas, R. (2024). Digital transformation influence on organisational resilience through organisational learning and innovation. Journal of Innovation and Entrepreneurship, 13, 69. https://doi.org/10.1186/s13731-024-00405-4
Benitez, J., Arenas, A., Castillo, A., & Esteves, J. (2022). Impact of digital leadership capability on innovation performance: The role of platform digitization capability. Information & Management, 59(2), 103590. https://doi.org/10.1016/j.im.2022.103590
Browder, R. E., Dwyer, S. M., & Koch, H. (2024). Upgrading adaptation: How digital transformation promotes organizational resilience. Strategic Entrepreneurship Journal, 18(1), 128–164. https://doi.org/10.1002/sej.1483
Carbonara, N., & Basile, L. J. (2025). Organization performance in smart working settings: The mediating role of digital leadership. International Journal of Organizational Analysis, 33(11), 4043–4066. https://doi.org/10.1108/IJOA-10-2024-4883
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Giovando, G. (2023). Digital workplace and organization performance: Moderating role of digital leadership capability. Journal of Innovation & Knowledge, 8(1), 100334. https://doi.org/10.1016/j.jik.2023.100334
Chen, A., Li, L., & Shahid, W. (2024). Digital transformation as the driving force for sustainable business performance: A moderated mediation model of market-driven business model innovation and digital leadership capabilities. Heliyon, 10(8), e29509. https://doi.org/10.1016/j.heliyon.2024.e29509
Chwiłkowska-Kubala, A., Cyfert, S., Malewska, K., Mierzejewska, K., & Szumowski, W. (2023). The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation. Technology in Society, 74, 102315. https://doi.org/10.1016/j.techsoc.2023.102315
Firlyani, A., Husin, A., Parinduri, R. D., & Yanti, S. N. (2026). Bridging ERP Integration and Decision-Making Quality: The Critical Role of Information Quality. Business System & Innovation Journal, 1(2), 86–95. https://doi.org/10.67955/bsij.v1i2.22
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
He, Z., Huang, H., Choi, H., & Bilgihan, A. (2022). Building organizational resilience with digital transformation. Journal of Service Management, 34(1), 147–171. https://doi.org/10.1108/JOSM-06-2021-0216
Legate, A. E., Hair, J. F. Jr., Chretien, J. L., & Risher, J. J. (2023). PLS-SEM: Prediction-oriented solutions for HRD researchers. Human Resource Development Quarterly, 34(1), 91–109. https://doi.org/10.1002/hrdq.21466
Narbariya, S., Nayeem, M. A., & Gupta, R. (2022). Does HPWS amplify employees’ change readiness for digital transformation? A study through the work-from-anywhere prism. Personnel Review, 51(8), 1948–1966. https://doi.org/10.1108/PR-01-2022-0068
Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology & Marketing, 39(5), 1035–1064. https://doi.org/10.1002/mar.21640
Shin, J., Mollah, M. A., & Choi, J. (2023). Sustainability and organizational performance in South Korea: The effect of digital leadership on digital culture and employees’ digital capabilities. Sustainability, 15(3), 2027. https://doi.org/10.3390/su15032027
Wang, G., Mansor, Z. D., & Leong, Y. C. (2024). Linking digital leadership and employee digital performance in SMEs in China: The chain-mediating role of high-involvement human resource management practice and employee dynamic capability. Heliyon, 10(16), e36026. https://doi.org/10.1016/j.heliyon.2024.e36026
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Wilen Wilen, Lina Fatini Azmi (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
