The Influence of Digital Leadership on Innovation Performance by Mediating Employee Creativity

Abstract

Innovation has become an important part of organizational strategy to achieve competitive advantage in the era of digitalization. This research aims to examine the influence of digital leadership on innovation performance, with employee creativity as a mediating factor. Methods: This research is a quantitative research using primary data obtained through a questionnaire survey of employees at a company in Indonesia which operates in the field of fertilizer production. The measurements were carried out using a Likert scale and data analysis was carried out with the help of the PLS-SEM tool. Research findings show that digital leadership has a positive and significant effect on innovation performance and employee creativity. Apart from that, employee creativity also has a significant effect on innovation performance and mediates the relationship between digital leadership and innovation performance. This research shows that effective digital leadership can increase innovation performance in the workplace by supporting employee creativity. This study fills the literature gap by exploring digital leadership as the main predictor of employee creativity at the micro level. The results provide valuable insights for leaders and management in responding to environmental changes by creating innovation.