Digital Leadership Mediated by Dynamic Capabilities Influences Organizational Performance

Abstract

This research is motivated by the researcher's interest in the phenomenon of declining organizational performance, particularly in existing products (voice and SMS). The advent of the Fourth Industrial Revolution poses new challenges for established companies to remain competitive at all times. Digital transformation has become a comprehensive organizational transformation movement encompassing crucial aspects such as strategy, processes, human resources, and leadership. The study was conducted within the Telkom Indonesia Group, with a sample of 283 respondents. Descriptive statistical analysis was performed using SPSS, while hypothesis testing employed Structural Equation Modeling (SEM) and Partial Least Square (PLS). The research aims to analyze and elucidate the influence of digital leadership mediated by dynamic capabilities on organizational performance. The initial hypothesis is that the improvement of digital leadership, mediated by dynamic capabilities, will enhance organizational performance. The findings of this research indicate that digital leadership can influence organizational performance through dynamic capabilities within the Telkom Indonesia Group as a partial mediation. Digital leadership can create company capabilities that improve organizational performance by transforming time series thought patterns into real-time actions through enhanced digital mastery. This enables the execution of business activities, management, and leadership more quickly, efficiently, and effectively in the digital era.