Digital workplace and organization performance: moderating role of digital leadership capability

Abstract

Since the onset of the COVID-19 pandemic, many organizations have permitted their employees to work from anywhere, giving rise to the phenomenon of the digital workplace, which enables employees to do their work by connecting, communicating, and collaborating with other employees. Organizations’ dynamic capabilities play a major role in enabling this transformation of the workplace. As the situation is so recent, there is considerable interest amongst researchers, practitioners, academicians, and policymakers to understand the role of organizations’ dynamic capability in digital transformation of the workplace, as well as the role of digital leadership in improving organization performance and enabling the digital transformation process to happen. Therefore, this study investigates the influence of digital workplace on organization performance and the moderating role of digital leadership capability in digitally transforming the workplace. We developed a research model from our review of the literature review and dynamic capability view (DCV) theory, and then we validated it using the PLS-SEM technique on a sample of 335 respondents from different types of organizations that have embarked on the digital transformation journey. The study finds that the dynamic capabilities of organizations have a significant and positive influence on the digital transformation of the workplace, which in turn improves the employees’ work-life balance resulting better employee performance and superior organization performance. The study also highlights the significant role that digital leadership plays in the digital transformation of the workplace.