Transformational leadership and workplace digitalization

This paper examines the mediating effect of innovative culture in the relationship between transformational leadership and workplace digitalization, and the moderating effect of rewards and recognition on the transformational leadership–innovative culture relationship. A 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. The findings reveal that the relationship between transformational leadership and workplace digitalization is mediated by innovative culture. Besides, rewards and recognition moderate the transformational leadership–innovative culture relationship. This study unpacks the black box for practitioners on how prominent organizational factors interact to shape employees’ perceptions and acceptance of workplace digitalization. The findings also enrich the interdisciplinary literature on how transformational leadership, rewards and recognition, and an innovative culture intersect with employees’ perceptions and acceptance of workplace digitalization.

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