Digital transformation requires public employees to combine technical capability with the motivation to apply it, yet evidence on whether digital training improves performance remains inconsistent. This study examines the direct effects of digital literacy, digital training, and work motivation on employee performance and tests work motivation as a mediator in a local government revenue agency. Positioned within the ability-motivation-opportunity framework, the study used an explanatory cross-sectional design and a census of 40 employees at the Regional Revenue Agency of Hulu Sungai Utara Regency, Indonesia. Employees self-reported digital literacy, digital training, and work motivation, whereas the agency head rated employee performance. Reflective measures were assessed using partial least squares structural equation modeling in SmartPLS 4. Digital literacy predicted performance (beta = .494, p < .001) and motivation (beta = .649, p < .001); motivation predicted performance (beta = .401, p = .006); and digital training predicted motivation (beta = .301, p = .003) but not performance (beta = -.016, p = .889). Motivation partially mediated the digital literacy-performance relationship (beta = .260, p = .004) but not the training-performance relationship. The findings identify digital literacy as the more immediate performance capability and suggest that training requires stronger job alignment and transfer opportunities to influence performance.
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