Effect of Digital Literacy on Employee Performance and Employee Engagement with a Moderating Influence of Digital Leadership in a Contemporary Work Environment

Abstract

In today's digitalized workplace of the telecom sector of Pakistan, employee performance relies on a critical set of technological skills. One of the most essential competencies for employees in the twenty-first century is digital literacy. This stud aims to explore the influence of digital literacy on employee performance, which is mediated by employee engagement and moderated by digital leadership. The data from 370 respondents in the telecom sector of twin cities (Islamabad & Rawalpindi), Pakistan is analyzed using a monomethod quantitative approach. Structural Equation Modelling was conducted and the findings revealed a significant influence of digital literacy on employee performance. The results found digital leadership negatively moderates digital literacy and employee engagement. This paper advocates that digital literacy is essential to enhance employee performance, by applying the right digital technology to engage employees which leads to improved employee performance in the workplace. The research findings provide empirical evidence contributing to the theoretical understanding.