The Influence of Digital Leadership on Organizational Performance and Employee Engagement: the Mediating Roles of Digital Transformation Culture and Organizational Agility

Abstract

Digital transformation has increased the strategic importance of digital leadership in higher education, yet empirical evidence on how digital culture and organizational agility jointly explain organizational performance remains limited, particularly in Indonesian universities. This study examined the associations among Digital Leadership, Organizational Performance, Employee Engagement, Digital Transformation Culture, and Organizational Agility at Universitas Muhammadiyah Tangerang (UMT). A quantitative cross-sectional survey was conducted from July to December 2025 using proportionate stratified random sampling. Data from 245 academic and administrative employees were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Digital Leadership was positively associated with Organizational Performance (β = 0.478, p < 0.001), Employee Engagement (β = 0.412, p < 0.001), Digital Transformation Culture (β = 0.503, p < 0.001), and Organizational Agility (β = 0.391, p < 0.001). Digital Transformation Culture significantly mediated the relationship between Digital Leadership and Organizational Performance (β = 0.187, VAF = 28.1%), indicating partial mediation. Organizational Agility also produced a significant indirect effect (β = 0.094, p = 0.002), but mediation was not supported because VAF was 16.4%, below the 20% criterion. The findings indicate that digital leadership is associated with organizational performance primarily through direct effects and the development of a digital transformation culture, while organizational agility provides a comparatively limited indirect pathway. The study contributes empirical evidence to Dynamic Capabilities Theory and offers practical implications for strengthening digital leadership, organizational culture, and adaptive capacity in higher education.