How Digital Leadership Enhances Employee Creativity: The Mediating Roles of Digital Culture, Employee Digital Capability, and Innovation Self-Efficacy in Indonesian Startups

Putri Aulia Setiadi; Ika Nurul Qamari

doi:10.61255/jeemba.v4i4.1639

Authors

Putri Aulia Setiadi Universitas Muhammadiyah Yogyakarta, Indonesia
Ika Nurul Qamari Universitas Muhammadiyah Yogyakarta, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i4.1639

Keywords:

Digital Leadership, Digital Culture, Employee Digital Capability, Employee Creativity, Startup Companies

Abstract

Purpose – This study examines the relationship between Digital Leadership and Employee Creativity through the mediating roles of Digital Culture, Employee Digital Capability, and Employees’ Innovation Self-Efficacy in Indonesian startup companies.

Design/Methodology/Approach – A quantitative cross-sectional survey was conducted with 171 employees of Indonesian startups. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.

Findings – Digital Leadership positively influences Digital Culture, Employee Digital Capability, and Employees’ Innovation Self-Efficacy. However, only Digital Culture has a significant positive effect on Employee Creativity and significantly mediates the relationship between Digital Leadership and Employee Creativity. Neither Employee Digital Capability nor Employees’ Innovation Self-Efficacy shows significant direct or mediating effects, while the direct relationship between Digital Leadership and Employee Creativity is also insignificant.

Originality/Value – This study extends previous digital leadership research by integrating environmental, competence-based, and psychological mechanisms into a parallel mediation model. The findings identify Digital Culture as the primary pathway through which Digital Leadership enhances Employee Creativity, offering theoretical and practical insights for startup organizations.

Abstract views: 0 ,

PDF downloads: 0

Downloads

Download data is not yet available.

References

Bandura, A. (1997). Self-efficacy: The exercise of control. New York, NY: W. H. Freeman.

Blanka, C., Krumay, B., & Rueckel, D. (2022). The interplay of digital transformation and employee competency: A design science approach. Technological Forecasting and Social Change, 178, 121575. https://doi.org/10.1016/j.techfore.2022.121575

Bogar, W. (2023). Determinants of employee creativity. International Journal of Professional Business Review, 8(6), e02219. https://doi.org/10.26668/businessreview/2023.v8i6.2219

Capron Puozzo, I., & Audrin, C. (2021). Improving self-efficacy and creative self-efficacy to foster creativity and learning in schools. Thinking Skills and Creativity, 42, 100966. https://doi.org/10.1016/j.tsc.2021.100966

Çetinkaya, B., & Sürücü, L. (2025). The influence of digital culture and digital leadership on innovative work behavior. Studies in Media and Communication, 13(3), 236–247. https://doi.org/10.11114/smc.v13i3.7709

Ding, X. (2026). Digital leadership, digital platform capability and digital business model innovation of start-ups. Journal of Innovation & Knowledge, 14, 100970. https://doi.org/10.1016/j.jik.2026.100970

Faul, F., Erdfelder, E., Buchner, A., & Lang, A.-G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41(4), 1149–1160. https://doi.org/10.3758/brm.41.4.1149

Hair, J., & Alamer, A. (2022). Partial least squares structural equation modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/10.1016/j.rmal.2022.100027

Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Evaluation of reflective measurement models. In Partial least squares structural equation modeling (PLS-SEM) using R: A workbook (pp. 75–90). Cham, Switzerland: Springer. https://doi.org/10.1007/978-3-030-80519-7_4

Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2018). Advanced issues in partial least squares structural equation modeling. Thousand Oaks, CA: Sage.

Hussain, N., & Phulpoto, S. (2024). Digital literacy: Empowering individuals in the digital age. Assyfa Learning Journal, 2(2), 70–83. https://doi.org/10.61650/alj.v2i2.231

Kareem, M. A., & Alameer, A. A. A. (2019). The impact of dynamic capabilities on organizational effectiveness. Management & Marketing: Challenges for the Knowledge Society, 14(4), 402–418. https://doi.org/10.2478/mmcks-2019-0028

Khan, M., Raya, R. P., & Viswanathan, R. (2022). Enhancing employee innovativeness and job performance through a culture of workplace innovation. International Journal of Productivity and Performance Management, 71(8), 3179–3204. https://doi.org/10.1108/ijppm-09-2020-0466

Kiefer, D., van Dinther, C., & Spitzmüller, J. (2021). Digital innovation culture: A systematic literature review. In F. Ahlemann, R. Schütte, & S. Stieglitz (Eds.), Innovation through information systems: Volume III: A collection of latest research on management issues (pp. 305–320). Cham, Switzerland: Springer. https://doi.org/10.1007/978-3-030-86800-0_22

Luqman, A., Talwar, S., Masood, A., & Dhir, A. (2021). Does enterprise social media use promote employee creativity and well-being? Journal of Business Research, 131, 40–54. https://doi.org/10.1016/j.jbusres.2021.03.051

Maghrifani, D., Fadli, A. O., & Ardekani, A. M. (2022). Workplace digital transformation: Impact of employees’ autonomy and relatedness to employees’ intention actively support digital transformation. Sebelas Maret Business Review, 7(2), 101. https://doi.org/10.20961/smbr.v7i2.73472

Mardiana, H., & Yakub, Y. (2025). The impact of digital literacy and digital competence on online teaching productivity: The moderating role of work behavior. Asian Association of Open Universities Journal, 20(2), 104–121. https://doi.org/10.1108/aaouj-09-2024-0120

Marpaung, D., Suriono, H., Bakti, S., Hakim, L. N., Mursyidin, & Ginting, E. (2024). Mendorong inovasi melalui budaya digital: Studi literatur tentang transformasi budaya organisasi di era pasca-pandemi. Kalianda Halok Gagas: Economics & Management, 7(2), 107–120. https://doi.org/10.52655/khg.v7i2.96

Merlano, C. A. (2024). Digital leadership and transformation in contemporary times. International Journal of Digital Strategy, Governance, and Business Transformation, 13(1), 1–20. https://doi.org/10.4018/ijdsgbt.352047

Nguyen, N. T., Hooi, L. W., & Avvari, M. V. (2023). Leadership styles and organisational innovation in Vietnam: Does employee creativity matter? International Journal of Productivity and Performance Management, 72(2), 331–360. https://doi.org/10.1108/ijppm-10-2020-0563

Nicolás-Agustín, Á., Jiménez-Jiménez, D., Maeso-Fernández, F., Di Prima, C., & Ferraris, A. (2026). Turning the lens: Linking knowledge-based dynamic capabilities, digital transformation and business model innovation. Journal of Knowledge Management, 1–32. https://doi.org/10.1108/jkm-06-2025-0918

Nohut, F., & Balaban, O. (2022). Employee’s innovative personality and self-efficacy. Marketing and Management of Innovations, 1, 58–66. https://doi.org/10.21272/mmi.2022.1-04

Nuraini, S. (2025). Digital leadership and organizational transformation: A literature review. Jurnal Ilmiah WUNY, 7(2), 112–126. https://doi.org/10.21831/jwuny.v7i2.85286

Pangarso, A., Winarno, A., Aulia, P., & Ritonga, D. A. (2022). Exploring the predictor and the consequence of digital organisational culture: A quantitative investigation using sufficient and necessity approach. Leadership & Organization Development Journal, 43(3), 370–385. https://doi.org/10.1108/lodj-11-2021-0516

Sahibzada, U. F., Janjua, N. A., Afshari, L., & Shakil, M. (2025). Leading the transition toward sustainability through digital capabilities and digital innovation: The role of employee characteristics. Journal of Innovation & Knowledge, 10, 100723. https://doi.org/10.1016/j.jik.2025.100723

Shin, J., Mollah, M. A., & Choi, J. (2023). Sustainability and organizational performance in South Korea: The effect of digital leadership on digital culture and employees’ digital capabilities. Sustainability, 15(3), 2027. https://doi.org/10.3390/su15032027

Singla, A., Sukharevsky, A., Yee, L., Chui, M., & Hall, B. (2025, March 12). The state of AI: How organizations are rewiring to capture value. McKinsey & Company. Retrieved July 19, 2026, from https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai-how-organizations-are-rewiring-to-capture-value

Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007

Trushkina, N., Abazov, R., Rynkevych, N., & Bakhautdinova, G. (2020). Digital transformation of organizational culture under conditions of the information economy. Virtual Economics, 3(1), 7–38. https://doi.org/10.34021/ve.2020.03.01(1)

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003

Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001

Yang, M., Talha, M., Zhang, S., & Zhang, Y. (2025). Exploring the mechanisms linking digital leadership to employee creativity: A moderated mediation model. Behavioral Sciences, 15(8), 1024. https://doi.org/10.3390/bs15081024

Yansen, Y., & Yujie, Z. (2023). The impact of transformative digital leadership on organizational innovation: A case study of successful digital transformation. International Journal of Advanced Research in Technology and Innovation, 5(1), 57–71. https://doi.org/10.55057/ijarti.2023.5.1.6

Zhu, J., Zhang, B., Xie, M., & Cao, Q. (2022). Digital leadership and employee creativity: The role of employee job crafting and person-organization fit. Frontiers in Psychology, 13, 827057. https://doi.org/10.3389/fpsyg.2022.827057