Digital Leadership And Institutional Performance In Higher Education: Faculty Digital Readiness As A Mediating Capability

Abstract

Digital transformation in higher education requires more than technology adoption; it depends on leadership capability, faculty readiness, and the ability of institutions to convert digital strategy into academic practice. This study examines how Digital Leadership Competencies, Management of Digital Leadership Barriers, and Digital Leadership Strategic Vision influence Institutional Performance and Stakeholder Outcomes through Faculty Digital Readiness. Grounded in Dynamic Capabilities Theory and Learning Organisation Theory, the study adopts a quantitative cross-sectional design and uses PLS-SEM to analyse data collected from 500 respondents from higher educational institutions. The findings show that all three digital leadership dimensions significantly enhance Faculty Digital Readiness. Faculty Digital Readiness, in turn, significantly improves Institutional Performance and Stakeholder Outcomes. The mediation results reveal that Faculty Digital Readiness fully mediates the effects of Digital Leadership Competencies and Digital Leadership Strategic Vision on institutional outcomes, while partially mediating the effect of Management of Digital Leadership Barriers. These results indicate that digital leadership does not automatically produce institutional performance; rather, its impact becomes meaningful when leadership capability, strategic vision, and barrier management are translated into faculty-level digital readiness. The study contributes by positioning Faculty Digital Readiness as the operational pathway through which digital leadership creates measurable institutional value in higher education.