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.