The Effect of Digital Leadership, Information Technology and Digital Competency on Employee Performance in the Digital Era: Mediating Role of Job Satisfaction

Abstract

Today, human resource is the main factor for organizations to achieve success. Thus, the employees are no longer only considered as production but have become an asset for the organization. Organizations must also be sensitive to the changes that occur in the internal and external environment to compete and maintain business during the significant competition due to globalization and industrial revolution. This study seeks to examine mediating role of job satisfaction in the effect of digital leadership, information technology and digital competency on employee performance in the digital era at BPR Sejahtera Batam. This study uses a quantitative method with explanatory research. The survey data were analyzed using the Structural Equation Modeling (SEM) using AMOS. The results indicated that digital leadership and digital competence have a significant positive effect on job satisfaction. Also, digital leadership and information technology have a significant positive effect on employee performance. Besides that, job satisfaction mediates the relationship between digital leadership and employee performance. In addition, this study found that Information Technology does not significant effect on job satisfaction and Digital Competence does not significant effect on employee performance. This study concludes that job satisfaction plays an important role as mediator in the relationship between digital leadership and employee performance.