IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2027-d1042918.html
   My bibliography  Save this article

Sustainability and Organizational Performance in South Korea: The Effect of Digital Leadership on Digital Culture and Employees’ Digital Capabilities

Author

Listed:
  • Jinkyo Shin

    (School of Business Administration, Keimyung University, Daegu 42601, Republic of Korea)

  • Md Alamgir Mollah

    (School of Business Administration, Keimyung University, Daegu 42601, Republic of Korea
    Department of Management Studies, University of Barisal, Barishal 8254, Bangladesh)

  • Jaehyeok Choi

    (School of Business Administration, Keimyung University, Daegu 42601, Republic of Korea)

Abstract

In the era of digital transformation, organizations are making efforts towards sustainability. In particular, leadership is transforming into digital leadership according to changes in management environments, which are deeply related to organizational performance. In this study, we focus on organizational performance and sustainability management and clarify the role of digital culture and employees’ digital capabilities in perspectives on digital leadership. We collected data from 149 employees who work in South Korean organizations using a survey based on digital leadership, digital culture, employees’ digital capabilities, and organizational performance, and we tested our hypotheses using structural equation modeling. The results show that digital leadership has a positive direct and indirect effect on organizational performance. Moreover, digital culture and employees’ digital capabilities partially mediate the relationship between digital leadership and sustainable organizational performance in South Korea. This study contributes to leadership and resource-based view (RBV) research by providing evidence for the role of digital leadership in sustainable organizational performance. As leadership continues to extend alongside verification of the RBV theory, the crucial role of digital leadership is changing, and the role of employees’ digital capabilities in organizational performance in South Korea needs to be considered.

Suggested Citation

  • Jinkyo Shin & Md Alamgir Mollah & Jaehyeok Choi, 2023. "Sustainability and Organizational Performance in South Korea: The Effect of Digital Leadership on Digital Culture and Employees’ Digital Capabilities," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2027-:d:1042918
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2027/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/3/2027/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    2. Al Ariss, Akram & Guo, Grace Chun, 2016. "Job allocations as cultural sorting in a culturally diverse organizational context," International Business Review, Elsevier, vol. 25(2), pages 579-588.
    3. Ritter, Thomas & Gemunden, Hans Georg, 2004. "The impact of a company's business strategy on its technological competence, network competence and innovation success," Journal of Business Research, Elsevier, vol. 57(5), pages 548-556, May.
    4. BarNir, Anat & Gallaugher, John M. & Auger, Pat, 2003. "Business process digitization, strategy, and the impact of firm age and size: the case of the magazine publishing industry," Journal of Business Venturing, Elsevier, vol. 18(6), pages 789-814, November.
    5. Frank, Alejandro G. & Mendes, Glauco H.S. & Ayala, Néstor F. & Ghezzi, Antonio, 2019. "Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 341-351.
    6. Fischer, Eileen & Rebecca Reuber, A., 2014. "Online entrepreneurial communication: Mitigating uncertainty and increasing differentiation via Twitter," Journal of Business Venturing, Elsevier, vol. 29(4), pages 565-583.
    7. Naqshbandi, M. Muzamil & Tabche, Ibrahim, 2018. "The interplay of leadership, absorptive capacity, and organizational learning culture in open innovation: Testing a moderated mediation model," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 156-167.
    8. Sabrina Zeike & Katherine Bradbury & Lara Lindert & Holger Pfaff, 2019. "Digital Leadership Skills and Associations with Psychological Well-Being," IJERPH, MDPI, vol. 16(14), pages 1-12, July.
    9. Patrick Holzmann & Erich J. Schwarz & David B. Audretsch, 2020. "Understanding the determinants of novel technology adoption among teachers: the case of 3D printing," The Journal of Technology Transfer, Springer, vol. 45(1), pages 259-275, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lacramioara Mansour & Elena Cerasela Spatariu & Gabriela Gheorghiu, 2023. "Organizational Culture - Promoter of Technological Innovation and Sustainable Development," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 678-687, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Malodia, Suresh & Mishra, Mahima & Fait, Monica & Papa, Armando & Dezi, Luca, 2023. "To digit or to head? Designing digital transformation journey of SMEs among digital self-efficacy and professional leadership," Journal of Business Research, Elsevier, vol. 157(C).
    2. Weidner, Nadia & Som, Oliver & Horvat, Djerdj, 2023. "An integrated conceptual framework for analysing heterogeneous configurations of absorptive capacity in manufacturing firms with the DUI innovation mode," Technovation, Elsevier, vol. 121(C).
    3. Zahoor, Nadia & Adomako, Samuel, 2023. "Be open to failure: Open innovation failure in dynamic environments," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    4. Culasso, Francesca & Gavurova, Beata & Crocco, Edoardo & Giacosa, Elisa, 2023. "Empirical identification of the chief digital officer role: A latent Dirichlet allocation approach," Journal of Business Research, Elsevier, vol. 154(C).
    5. Chwiłkowska-Kubala, Anna & Cyfert, Szymon & Malewska, Kamila & Mierzejewska, Katarzyna & Szumowski, Witold, 2023. "The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation," Technology in Society, Elsevier, vol. 74(C).
    6. Alkaraan, Fadi & Elmarzouky, Mahmoud & Hussainey, Khaled & Venkatesh, V.G., 2023. "Sustainable strategic investment decision-making practices in UK companies: The influence of governance mechanisms on synergy between industry 4.0 and circular economy," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    7. Paolo E. Giordani & Francesco Rullani, 2020. "The Digital Revolution and COVID-19," Working Papers 06, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    8. Alex Coad, 2018. "Firm age: a survey," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 13-43, January.
    9. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    10. Hua Zhang & Qiwang Zhang, 2023. "How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    11. Wang Dongling & Kelvin C.K. Lam, 2018. "Whether the Innovation Policy Will Really Improve Enterprise’s Innovation Performance— Mediating Role of Ambidextrous Learning," International Business Research, Canadian Center of Science and Education, vol. 11(9), pages 96-107, September.
    12. Elena Dinu & Elena-Mădălina Vătămănescu & Roxana-Maria Stăneiu & Mihaela Rusu, 2023. "An Exploratory Study Linking Intellectual Capital and Technology Management towards Innovative Performance in KIBS," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    13. Yaffa Moskovich, 2018. "Belief systems and business strategy in a privatized kibbutz factory," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(1), pages 5-36, March.
    14. Tortorella, Guilherme Luz & Narayanamurthy, Gopalakrishnan & Thurer, Matthias, 2021. "Identifying pathways to a high-performing lean automation implementation: An empirical study in the manufacturing industry," International Journal of Production Economics, Elsevier, vol. 231(C).
    15. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2016. "Innovation and firm growth: Does firm age play a role?," Research Policy, Elsevier, vol. 45(2), pages 387-400.
    16. Bouncken, Ricarda B. & Ratzmann, Martin & Kraus, Sascha, 2021. "Anti-aging: How innovation is shaped by firm age and mutual knowledge creation in an alliance," Journal of Business Research, Elsevier, vol. 137(C), pages 422-429.
    17. Lingyan Meng & Md Qamruzzaman & Anass Hamad Elneel Adow, 2021. "Technological Adaption and Open Innovation in SMEs: An Strategic Assessment for Women-Owned SMEs Sustainability in Bangladesh," Sustainability, MDPI, vol. 13(5), pages 1-22, March.
    18. Morteza Ghobakhloo & Mohammad Iranmanesh & Andrius Grybauskas & Mantas Vilkas & Monika Petraitė, 2021. "Industry 4.0, innovation, and sustainable development: A systematic review and a roadmap to sustainable innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4237-4257, December.
    19. Marija Jović & Edvard Tijan & Doroteja Vidmar & Andreja Pucihar, 2022. "Factors of Digital Transformation in the Maritime Transport Sector," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    20. Smith, Claudia & Smith, J. Brock & Shaw, Eleanor, 2017. "Embracing digital networks: Entrepreneurs' social capital online," Journal of Business Venturing, Elsevier, vol. 32(1), pages 18-34.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2027-:d:1042918. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.