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Digital leadership capabilities and dynamic workplaces enhance IT firm performance through digital innovation using a PLS SEM and ANN approach
Khan, Rizwan Ullah Almazrouei, Faisal Saif Salem Saif Sharair, Mohammad Haroun Harmal, Majed Ageel A.
Khan, Rizwan Ullah
Almazrouei, Faisal Saif Salem Saif
Sharair, Mohammad Haroun
Harmal, Majed Ageel A.
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Date
2025-10-23
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Abstract
This study investigates the influence of digital leadership skills and
dynamic, innovative work environments on firm performance in China's IT
sector, with digital innovation acting as a mediating factor. Drawing on the
Dynamic Capabilities View (DCV) and the Resource-Based View (RBV), we
develop and test a framework that combines leadership, workplace, and
innovation perspectives. Using data from 338 managers in IT
manufacturing companies in Guangdong and Zhejiang, the model was
evaluated with PLS-SEM for causal links and Artificial Neural Networks
(ANNs) for predictive validation. Results show that digital leadership
significantly boosts performance both directly and indirectly through
digital innovation, while workplace dynamism improves performance
directly but not via innovation. This non-significant mediation suggests
that in China’s IT sector, cultural and institutional factors may allow
workplaces to influence outcomes independently of technological
innovation. By combining SEM and ANN, the study offers a methodological
contribution and clarifies how leadership and workplace dynamics jointly
shape digital transformation outcomes in an emerging economy context.
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Self