Beyond Technology: Critical Thinking and Digital Leadership as Determinants of Employee Performance

Abstract

Digital transformation in higher education extends beyond technological adoption and requires the development of strategic human competencies that can sustain organizational performance. Among these competencies, critical thinking and digital leadership have emerged as essential factors in enabling employees to adapt, innovate, and perform effectively in a dynamic work environment. This study investigates the influence of critical thinking and digital leadership on employee performance at Universitas Muhammadiyah Aceh. A quantitative approach was employed using a census method involving 210 permanent employees. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that critical thinking has a positive effect on employee performance, indicating its dominant role in enhancing employees’ analytical abilities, decision-making quality, and problem-solving capacity. Digital leadership also demonstrates a positive influence on employee performance, highlighting the importance of technology-oriented leadership in fostering productivity and organizational adaptability. Furthermore, both variables jointly explain 54.5% of the variance in employee performance. The study concludes that strengthening critical thinking competencies and digital leadership capabilities is essential for developing high-performing employees and supporting successful digital transformation in higher education institutions.