The Mediating Role of Job Security in The Impact of Digital Leadership on Job Satisfaction and Life Satisfaction

Abstract

Digital leadership emerges as the reflection of technological innovation in business life into administration mentality. As well as possessing leadership skills, digital leaders can be defined as leaders who are talented in terms of information technologies, visionary, can think innovatively, increase the corporation’s performance and create the transformation required by the business. The literature emphasizes that digital leadership practices and digital transformation efforts can fail due to fear of being unemployed, the tendency to maintain the usual, and showing resistance to transformation. However, it is realized that these approaches are generally based on foresight and are not supported by real practices. In this regard, the mediating effect of job security satisfaction of employees on the impact of digital leadership upon job satisfaction and life satisfaction is tried to be explained with application findings by utilizing from Resource Based View (RBV). The study was conducted with 403 employees working in an industrial organization. The data obtained were analysed through the Smart-PLS program, and the mediating effect was measured using a structural equation model. The model found that digital leadership had a significant effect (0.199) on job satisfaction, digital leadership had a significant effect (0.182) on life satisfaction, and digital leadership had a significant effect of 0.312 on the perception of job security. Once again, it was found that the perception of job security had a partial mediating effect (0.156) on the effect of digital leadership upon job satisfaction, and the perception of job security had a partial mediating effect (0.150) on the effect of digital leadership upon life satisfaction. The present study indicated that in a well-designed digital transformation, digital leaders could increase employees’ job and life satisfaction, and job security had a mediating impact upon this increase. Digital transformation in businesses creates an environment that allows high-performing employees to stand out more than low-performing employees and to display their talents. Thus, it could be stated that digital technologies have a significant effect on the prominence of talented individuals and increase employees’ job satisfaction and life satisfaction by utilizing RBV, as well. As a consequence of its structural characteristics, digital leadership paves the way for more effective use of human resources in the enterprise, the realization of the necessary organizational transformation, and the increase in the perception of job security of the employees thanks to the contribution it provides to the qualitative improvement of the organization.