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Workplace digitalization and employee engagement

  • February 20, 2026
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Engaged employees provide a competitive advantage by striving for organizational excellence. This study examines employee engagement (EE) with workplace digitalization as a mediator, proposing an integrated framework in which transformational leadership and innovative culture act as antecedents. The authors argue that both factors influence EE directly and indirectly through workplace digitalization. Using structural equation modeling (SEM) on 256 online survey responses from management-level executives in Selangor and Kuala Lumpur, Malaysia, the findings show that workplace digitalization positively affects EE. Innovative culture significantly influences workplace digitalization and has both direct and partial indirect effects on EE. Transformational leadership directly enhances EE but does not significantly affect EE through workplace digitalization. The results suggest that cultivating an innovative culture can accelerate EE by fostering acceptance of workplace digitalization. This study contributes to interdisciplinary theory by clarifying how perceptions of digitalization shape EE and by highlighting the distinct roles of transformational leadership and innovative culture in digitalized workplaces.

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