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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
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    References listed on IDEAS

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    Cited by:

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    2. Wu, Min & Tsai, Nien En & Koh, Le Yi & Yuen, Kum Fai, 2025. "Maritime AI socialisation: Exploring the impact of digital enablers on human-AI collaboration and service and process innovation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 197(C).
    3. 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.
    4. Porkodi S & Sanyo Moosa & Sonal Pundhir, 2026. "AI-Responsive Agile Leadership and Sustainable Organizational Outcomes in AI-Integrated Environments," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 27(1), pages 207-239, March.
    5. Li, Xue & Seah, Rachel Yan Ting & Yuen, Kum Fai, 2025. "Mental wellbeing in digital workplaces: The role of digital resources, technostress, and burnout," Technology in Society, Elsevier, vol. 81(C).
    6. Dumitra Edi-Cristian & Puiu Alexandra-Paula & Neguţoiu Milian, 2025. "Using Digital Technologies for Motivating and Enhancing Team Performance," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 19(1), pages 3377-3387.

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