Digital Organizational Culture and Employee Performance: How Digital Literacy and Digital Leadership Shape Performance?

Abstract

The study investigates the association of Digital Organizational Culture with Employee Performance through Digital Literacy, as well as whether Digital Leadership alters the strength of that association. A cross-sectional survey produced 228 usable responses from employees in a digitalized function of an Indonesian State-Owned Enterprise (SOE). The SmartPLS, a partial least squares structural equation modeling (PLS-SEM) software package, was used for model evaluation. Digital Organizational Culture was related to Digital Literacy (β = 0.612; t = 15.582; p < 0.001) and Employee Performance (β = 0.286; t = 3.827; p < 0.001). Digital Literacy was also related to Employee Performance (β = 0.315; t = 4.634; p < 0.001), mediating part of the influence of Digital Organizational Culture on Employee Performance (β = 0.193; t = 4.314; p < 0.001). The Digital Leadership interaction was not significant (β = 0.033; t = 0.523; p = 0.601). Thus, the supported model contains both a direct DOC-Employee Performance path, as well as an indirect path through Digital Literacy, but no supported moderation by Digital Leadership.