Muh. Afdal Abdullah
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The Role of Digital Leadership and Digital Capabilities on Dynamic Capabilities and Digital Performance of MSME Employees Muh. Afdal Abdullah; Rahmad Sholing Hamid; Duriani
Al-Kharaj: Journal of Islamic Economic and Business Vol. 7 No. 1 (2025): All articles in this issue include authors from 3 countries of origin (Indonesi
Publisher : LP2M IAIN Palopo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24256/kharaj.v7i1.6570

Abstract

This study explores the role of digital leadership and digital capabilities in improving employee dynamic capabilities and employee digital performance in the micro, small, and medium enterprise (MSME) sector in Indonesia. With an integrative approach, this study tests the relationship between these variables using a theoretical model based on quantitative methods. The results of the study show that digital leadership has a significant influence in creating an adaptive and collaborative work culture, while employee digital capabilities increase innovation and productivity. Employee dynamic capabilities were found to be a key mediator that strengthens the relationship between digital capabilities and employee digital performance. This study provides theoretical contributions by integrating these variables in the context of MSMEs and offers practical implications for MSME leaders in optimizing digital technology for business sustainability in the era of digital transformation. This study also underlines the need for strategic policies and training that support digitalization to improve the competitiveness of MSMEs.
The Role of Digital Leadership and Digital Capabilities on Dynamic Capabilities and Digital Performance of MSME Employees Muh. Afdal Abdullah; Rahmad Sholing Hamid; Duriani
Al-Kharaj: Journal of Islamic Economic and Business Vol. 7 No. 1 (2025): All articles in this issue include authors from 3 countries of origin (Indonesi
Publisher : LP2M IAIN Palopo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24256/kharaj.v7i1.6570

Abstract

This study explores the role of digital leadership and digital capabilities in improving employee dynamic capabilities and employee digital performance in the micro, small, and medium enterprise (MSME) sector in Indonesia. With an integrative approach, this study tests the relationship between these variables using a theoretical model based on quantitative methods. The results of the study show that digital leadership has a significant influence in creating an adaptive and collaborative work culture, while employee digital capabilities increase innovation and productivity. Employee dynamic capabilities were found to be a key mediator that strengthens the relationship between digital capabilities and employee digital performance. This study provides theoretical contributions by integrating these variables in the context of MSMEs and offers practical implications for MSME leaders in optimizing digital technology for business sustainability in the era of digital transformation. This study also underlines the need for strategic policies and training that support digitalization to improve the competitiveness of MSMEs.