The Impact of Digital Leadership and Organizational Transformation on Employee Engagement and Performance
DOI:
https://doi.org/10.62394/projmb.v5i1.262Keywords:
digital leadership, organizational transformation, employee engagementAbstract
Purpose – This study aims to examine and synthesize literature on the roles of digital leadership and organizational transformation in shaping employee engagement and performance in the digital era. It identifies research gaps and contextual mechanisms.
Design/method/approach – A Literature Review (LR) approach was employed to examine peer-reviewed articles published between 2016 and 2025 through the Directory of Open Access Journals (DOAJ) and Google Scholar. The search used the keywords digital leadership, organizational transformation, employee engagement, and employee performance. Studies in English or Indonesian were assessed by objectives, contexts, methods, concepts, and findings. Evidence was synthesized using qualitative analysis.
Findings – Literature shows that digital leadership and organizational transformation influence employee engagement and performance. Digital leadership strengthens technological adaptability, visionary leadership, innovation, collaboration, and empowerment. Organizational transformation enhances digital adaptation, operational efficiency, productivity, and competitiveness. Organizational culture and employee engagement mediate these relationships. Nevertheless, resistance to change, digital competency gaps, inadequate infrastructure, and generational differences can hinder successful transformation and limit organizational outcomes.
Implications – Organizations should integrate digital leadership development, employee capability development, organizational transformation, and innovation-supportive cultures. Managers should approach digital transformation as a socio-organizational process and strengthen continuous learning, digital skills, employee participation, and change-management capabilities.
Novelty/Originality – This review integrates fragmented literature on digital leadership, organizational transformation, organizational culture, employee engagement, and employee performance into a unified perspective and proposes future research linking organizational learning, employee agility, resilience, and sustainable performance.
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Copyright (c) 2026 Silvia Wahyu Safitri, Dedy Iswanto, Mohammad Gamri, Muhammad Fuzail, Suwandi S. Sangadji
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