Purpose – This study aims to determine the effect of digitalization on employee performance with deviant behavior as a mediating variable among PLN UP3 Malang employees. Design/Methodology/Approach – This study employs a quantitative research approach using a saturated sampling technique. The respondents consisted of 101 permanent employees of PLN UP3 Malang. Data were collected through printed questionnaires distributed directly to respondents and analyzed using the Structural Equation Model (SEM) method with SmartPLS version 4. Findings – The results indicate that digitalization has a significant positive effect on employee performance, while digitalization has a negative effect on deviant behavior. Furthermore, deviant behavior does not significantly affect employee performance and does not mediate the relationship between digitalization and employee performance. These findings suggest that digitalization should be continuously optimized while implementing strategies to minimize potential negative workplace behaviors. Originality/Value This research provides value by empirically examining the role of deviant behavior as a mediating variable in the relationship between digitalization and employee performance, offering insights that help organizations optimize digital initiatives while maintaining a healthy work environment.
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