Digital Leadership’s Influence on Individual Creativity and Employee Performance: A View through the Generational Lens

Abstract

Today’s digitalized business atmosphere places significant emphasis on digital leadership, as digital transformation can only be successful for leaders who are capable of overseeing the entire digitalization process. In this study, we examine the employee-level outputs of digital leadership in terms of individual creativity and employee performance. Based on the data of 348 employees and by using PLS-SEM, we find that (i) digital leadership is a significant antecedent of individual creativity, and (ii) individual creativity fully mediates the relationship between digital leadership and employee performance. When digital leadership abilities are a matter of concern, it becomes necessary to mention the importance of generational differences between those leaders, as OB studies also underline the generational differences toward new technologies. Hence, we also conducted a multigroup analysis (MGA) to determine if those interrelationships among digital leadership, individual creativity, and employee performance differ due to the generations of the managers. Surprisingly, the MGA results reveal minor differences. The findings of this study highlight the importance of embracing digital leadership in fostering a creative and high-performing work environment and provide insights for organizations aiming to harness the unique strengths and talents of their multigenerational workforce. Digital leaders who foster a culture of innovation, adaptability, and open communication can inspire employees to think creatively and come up with novel ideas. By leveraging digital tools and providing a supportive environment, digital leaders can also enhance employee creativity and performance.