The Influence of Digital Leadership on Organizational Performance in Jakarta

Authors

  • Nurshinta Universitas Negeri Jakarta
  • Vira Deyana Cindy
  • Osly Usman

DOI:

https://doi.org/10.21009/ISC-BEAM.011.44

Keywords:

digital leadership, digital culture, digital technology, digital marketing, organizational performance

Abstract

Digital technology's transformative influence in business is undeniable, reshaping strategies and operations. Embracing this change goes beyond tech adoption it requires aligning culture, structure, and people with the evolving landscape. Digital leadership is crucial in navigating this realm, impacting job motivation, innovation, and overall performance. However, the relationship between digital leadership, employee performance, and digital culture is complex and context-dependent. The study aims to investigate the impact of digital leadership on organizational performance, with digital culture, digital technology, and digital marketing as intervening variables concerning sustainability and organizational performance in Jakarta. It uses a quantitative approach to analyze the numerical relationship between the variables. Utilizing a Purposive Sampling design, the Partial Least Square (PLS) approach will be employed for study analysis, with assistance from the SMARTPLS 4.0 application. Digital culture, marketing, and technology are all has significant influence by digital leadership.  Higher digital leadership positively correlates with increased digital culture, marketing, and technology, while lower digital leadership negatively affects these aspects. Digital culture significantly influences organizational performance. Meanwhile, digital marketing shows a positive influence on performance but lacks significance. Digital technology positively and significantly affects organizational performance. Prioritize the enhancement of digital leadership to advance digital culture, marketing strategies, and technological implementation within organizations. Examine how digital culture contributes to organizational performance, emphasizing a culture fostering innovation, adaptability, and collaboration.

References

Akparep, J. , Jengre, E. and Mogre, A. (2019) The Influence of Leadership Style on Organizational Performance at TumaKavi Development Association, Tamale, Northern Region of Ghana. Open Journal of Leadership, 8, 1-22. doi: 10.4236/ojl.2019.81001.
Al-Husban, D. A. A. O., Almarshad, M. N. D., & Altahrawi, M. H. A. (2021). Digital leadership and organization’s performance: The mediating role of innovation capability. Int. J. Entrep, 25, 1-16.
Araujo, L. M. de, Priadana, S., Paramarta,V., & Sunarsi, D. (2021). Digital leadership in business organizations: an overview. International Journal of Educational Administration, Management, and Leadership, 2(1), 45-56. https://doi.org/10.51629/ijeamal.v2i1.18
Busco, C., González, F., & Aránguiz, M. (2023). Factors that favor or hinder the acquisition of a digital culture in large organizations in Chile. Frontiers in Psychology, 14, 1153031. https://doi.org/10.3389/fpsyg.2023.1153031
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Giovando, G. (2023). Digital workplace and organization performance: Moderating role of digital leadership capability. Journal of Innovation & Knowledge, 8(1), 100334.
Chouaibi, S., Festa, G., Quaglia, R., & Rossi, M. (2022). The risky impact of digital transformation on organizational performance –evidence from Tunisia. Technological Forecasting and Social Change, 178, 121571. https://doi.org/10.1016/j.techfore.2022.121571
Conţu, E. G. (2020, July). Organizational performance–theoretical and practical approaches; study on students’ perceptions. In Proceedings of the International Conference on Business Excellence(Vol. 14, No. 1, pp. 398-406). DOI:10.2478/picbe-2020-0038
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The Role of Leadership in a Digitalized World: A Review. Frontiers in Psychology, 10. https://doi.org/10.3389/fpsyg.2019.01938
Desai, V., & Vidyapeeth, B. (2019). Digital marketing: A review. International Journal of Trend in Scientific Research and Development, 5(5), 196-200. https://doi.org/10.31142/ijtsrd23100
Dienlin, T., & Johannes, N. (2020). The impact of digital technology use on adolescent well-being. Dialogues in Clinical Neuroscience, 22(2), 135-142. https://doi.org/10.31887/DCNS.2020.22.2/tdienlin
El Sawy, O. A., Kræmmergaard, P., Amsinck, H., & Vinther, A. L. (2020). How LEGO built the foundations and enterprise capabilities for digital leadership. In Strategic information management(pp. 174-201). Routledge.
Erlangga, H. (2021). Effect of digital marketing and social media on purchase intention of Smes food products. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(3), 3672-3678.
Fadoi, E., & Boudabbous, S. (2023).The Role Of Digital Marketing Practices In OrganizationalPerformance In The Case Of Commercial Bank Of Ethiopia. Journal of Management Information and Decision Sciences, 26 (S4), 1-15. ISSN: 1532-5806
Fatima, T.and Masood, A.(2023), "Impact of digital leadership on open innovation: a moderating serial mediation model", Journal of Knowledge Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JKM-11-2022-0872
Fatima, T.and Masood, A.(2023), "Impact of digital leadership on open innovation: a moderating serial mediation model", Journal of Knowledge Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JKM-11-2022-0872
Heredia, J., Castillo-Vergara, M., Geldes, C., Carbajal Gamarra, F. M., Flores, A., & Heredia, W. (2022). How do digital capabilities affect firm performance? Themediating role of technological capabilities in the “new normal”. Journal of Innovation & Knowledge, 7(2), 100171. https://doi.org/10.1016/j.jik.2022.100171
Inthavong, P., Rehman, K. U., Masood, K., Shaukat, Z., Hnydiuk-Stefan, A., & Ray, S. (2023). Impact of organizational learning on sustainable firm performance: Intervening effect of organizational networking and innovation. Heliyon, 9(5), e16177. https://doi.org/10.1016/j.heliyon.2023.e16177
Islami, N. N., & Wahyuni, S. (2020). The Effect of Digital Marketing on Organizational Performance Through Intellectual Capital and Perceived Quality in Micro, Small and Medium Enterprises.16 (1), 59–70.DOI:10.33830/jom.v16i1.718.2020
Jenatabadi, H. S. (2015). An overview of organizational performance index: Definitions and measurements. Available at SSRN 2599439.
640| P a g eJung, S., & Shegai, V. (2022). The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size. Sustainability, 15(7), 5711. https://doi.org/10.3390/su15075711
Langan, R., Cowley, S., & Nguyen, C. (2019). The State of Digital Marketing in Academia: An Examination of Marketing Curriculum’s Response to Digital Disruption. Journal of Marketing Education. https://doi.org/10.1177/0273475318823849
Leal-Rodríguez, A. L., Sanchís-Pedregosa, C., Moreno-Moreno, A. M., & Leal-Millán, A. G. (2023). Digitalization beyond technology: Proposing an explanatory and predictive model for digital culture in organizations. Journalof Innovation & Knowledge, 8(3), 100409.
Leisander, I., & Diah, D. (2017). Pengaruh Digital Marketing Terhadap Organizational Performance dengan Intellectual Capital dan Perceived Quality Sebagai Variabel Intervening pada Industri Hotel Bintang Lima di Jawa Timur. Jurnal Strategi Pemasaran, 2(2).
López García, J. J., Lizcano, D., Ramos, C. M., & Matos, N. (2019). Digital Marketing Actions That Achieve a Better Attraction and Loyalty of Users: An Analytical Study. Future Internet, 11(6), 130. https://doi.org/10.3390/fi11060130
Ly, B. (2023). The Interplay of Digital Transformational Leadership, Organizational Agility, and Digital Transformation. Journal of the Knowledge Economy, 1-20.M. Raoofi, “Moderating role of e-marketing on the consequences of market orientation in iranian firms,” Management & Marketing-Craiova, no. 2, pp. 301–316, 2012.
Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firmperformance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, 119962. https://doi.org/10.1016/j.techfore.2020.119962
Mason, J. C. (2014). The why dimension-opening frontiers for digital learning(Doctoral dissertation, Queensland University of Technology).Masoud, R., & Basahel, S. (2023). The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation. Digital, 3(2), 109-126. https://doi.org/10.3390/digital3020008
Mihelj, S., Leguina, A., & Downey, J. (2019). Culture is digital: Cultural participation, diversity and the digital divide. New Media & Society. https://doi.org/10.1177/1461444818822816
Pradana, M., Silvianita, A., Syarifuddin, S., & Renaldi, R. (2022). The Implication of Digital Organisational Culture on Firm Performance. Frontiers in Psychology, 13, 840699. https://doi.org/10.3389/fpsyg.2022.840699
Puliwarna, T., Djati, P, S., and Tanti, Elisabeth P. (2023). The Effect of Digital Leadership, organizational culture, digital competence and organization's commitment on Organizational Performance. International Journal of Scientific Research and Management, 11(04), EM-2023-4834. Retrieved from https://ijsrm.net/index.php/ijsrm/article/download/4545/2894/13466
Ribeiro-Navarrete, B., Martín Martín, J. M., Guaita-Martínez, J. M., Simón-Moya, V. (2023). Analysingcooperatives’ digital maturity using a synthetic indicator. *International Journal of Information Management*, 72, 102678. https://doi.org/10.1016/j.ijinfomgt.2023.102678
Ritz, W., Wolf, M.and McQuitty, S.(2019). Digital marketing adoption and success for small businesses: The application of the do-it-yourself and technology acceptance models. Journal of Research in Interactive Marketing, Vol.13 No. 2, pp. 179-203. https://doi.org/10.1108/JRIM-04-2018-0062
Royle, J., & Laing, A. (2014). The digital marketing skills gap: Developing a Digital Marketer Model for the communication industries. International Journal of Information Management, 34(2), 65-73. https://doi.org/10.1016/j.ijinfomgt.2013.11.008
Rudito, P., & Sinaga, M. F. (2017). Digital mastery, Membangun kepemimpinan digital untuk memenangkan era disrupsi. Gramedia Pustaka Utama.
Sadiku, M. N., Tembely, M., Musa, S. M., & Momoh, O. D. (2017). Digital Culture. International Journals of Advanced Research in Computer Science and Software Engineering, 7(6), 33-34.
SAĞBAŞ, M., & ERDOĞAN, F. A. (2022). Digital leadership: a systematic conceptual literature review. İstanbul Kent Üniversitesi İnsan ve Toplum Bilimleri Dergisi, 3(1), 17-35.
Shin, J., Mollah, M. A., & Choi, J. (2022). Sustainability and Organizational Performance in South Korea: The Effect of Digital Leadership on Digital Culture and Employees’ Digital Capabilities. Sustainability, 15(3), 2027. https://doi.org/10.3390/su15032027
Sinnaiah, T., Adam, S.and Mahadi, B.(2023). A strategic management process: the role of decision-making style and organisational performance. Journal of Work-Applied Management. Vol. 15 No. 1, pp. 37-50. https://doi.org/10.1108/JWAM-10-2022-0074
Sonmez Cakir, F., & Adiguzel, Z. (2020). Analysis of leader effectiveness in organization and knowledge sharing behavior on employees and organization. Sage Open, 10(1), 2158244020914634.
Tagscherer, F., & Carbon, C. (2023). Leadership for successful digitalization: A literature review on companies’ internal and external aspects of digitalization. Sustainable Technology and Entrepreneurship, 2(2), 100039. https://doi.org/10.1016/j.stae.2023.100039
Timotheou, S., Miliou, O., Dimitriadis, Y., Sobrino, S. V., Giannoutsou, N., Cachia, R., Monés, A. M., & Ioannou, A. (2023). Impacts of digital technologies on education and factors influencing schools' digital capacity and transformation: A literature review. Education and Information Technologies, 28(6), 6695-6726. https://doi.org/10.1007/s10639-022-11431-8
Tulinayo, F. P., Ssentume, P., & Najjuma, R. (2018). Digital technologies in resource constrained higher institutions of learning: A study on students’ acceptance and usability. International Journal of Educational Technology in Higher Education, 15(1), 1-19. https://doi.org/10.1186/s41239-018-0117-y
Tulungen, E. E., Tewal, B., & Pandowo, M. (2022). The Role of Digital Leadership Mediated by Digital Skill in Improving Organizational Performance. Journal of Accounting Research, Organization and Economics, 5(2), 156-171.
Uysal, M. C. (2022). Digital Culture and Employees. Digital Transformation: A Human-Centric Approach, 153.Uzelac, A. (2010). Digital culture as a converging paradigm for technology and culture: Challenges for the culture sector.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
W. Fute and B. J. Lyimo, “Influence of the digital marketing on performance of banking industry Tanzania: A case of Barclays Bank,” Olva Academy–School of Researchers, vol. 2, no. 3, pp. 1–33, 2019
Yao, Q., Tang, H., Liu, Y.and Boadu, F.(2023), "The penetration effect of digital leadership on digital transformation: the role of digital strategy consensus and diversity types", Journal of Enterprise Information Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEIM-09-2022-0350

Downloads

Published

2024-02-23

How to Cite

Nurshinta, Vira Deyana Cindy, & Osly Usman. (2024). The Influence of Digital Leadership on Organizational Performance in Jakarta. International Student Conference on Business, Education, Economics, Accounting, and Management (ISC-BEAM), 1(1), 621–642. https://doi.org/10.21009/ISC-BEAM.011.44

Most read articles by the same author(s)

<< < 1 2