Innovative culture and rewards-recognition matter in linking transformational leadership to workplace digitalisation?

Abstract

PurposeThis paper aims to examine the mediating effect of innovative culture in the relationship between transformational leadership and workplace digitalisation; and the moderating effect of rewards and recognition on the transformational leadership–innovative culture relationship.Design/methodology/approachA total of 256 valid samples were used in the structural equation modeling tests. The respondents were management-level executives from companies in Selangor/Kuala Lumpur, Malaysia.FindingsThe findings reveal that the transformational leadership–workplace digitalisation relationship is mediated by innovative culture. Besides, rewards and recognition moderate the transformational leadership–innovative culture relationship.Practical implicationsThis study unpacks the black box to the practitioners how the prominent organisational factors interplay in shaping employees' perception and acceptance of workplace digitalisation.Originality/valueThe findings also enrich the interdisciplinary literature on how transformational leadership, rewards-recognition, and innovative culture intersect with employees' perception and acceptance of workplace digitalisation.