Exploring the Effect of Digital Leadership, Employee Engagementand Organizational Commitment on Employee Performance: An Investigation in Bangladesh

Abstract

Purpose: Industry 4.0 brings many changes to organizations, impacting leadership, culture,
strategy, employee behavior, technology, and organizational performance. This research aims
to explore the effect of digital leadership (DL) on employee performance (EP), with mediating
effects of employee engagement (EE) and organizational commitment (OC).
Methodology: The researchers have used 239 samples from various establishments in
Bangladesh, with SPSS 23 and AMOS 24 used for analysis.
Findings: The findings demonstrate that DL has direct and indirect effect on EP, while EE
positively influences EP; however, OC does not have substantial effect on EP. Additionally,
EE partially mediates, and OC do not have substantial mediation effect between DL and EP.
While double mediation path analysis shows a significant mediation effect from the path of DL
to organizational commitment to employee engagement to EP.
Implications: This result infers that organizational commitment alone cannot increase
performance; it also requires employee engagement. This examination contributes to the
existing leadership and resource-based view theories in such a way that DL leaders are playing
a key role in enhancing EP. The digitalized environment is substantially influencing the
association between DL, EE, and EP in developing countries.