This study analyzes the direct effects of competency development and work balance on adaptive employees' performance and digital innovation as a mediating variable among employees. Using an interpretative quantitative approach, primary data was collected through a Likert scale questionnaire Likert scale questionnaire distributed to 130 employees who were selected based on their relevance to the agile and digital environment. sampling based on their relevance to an agile and digital environment. Data analysis was conducted using partial least squares structural equation modeling (PLS-SEM) using SmartPLS software. The results showed that competency development and work balance did not significantly affect adaptive employees' performance. However, digital innovation significantly mediates the relationship between competency development and adaptive employee performance. In contrast, digital innovation does not significantly mediate the relationship between work balance to adaptive employee performance. These findings suggest that improving adaptive employee performance will be more effective if it focuses on improving competency development that is aligned with digital innova tion in the agile era.
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