Drawing on survey data from civil servants at the Health Office of Konawe Kepulauan Regency, Indonesia, this research examines whether digital competence raises employee performance and whether psychological empowerment carries part of that influence. An explanatory quantitative design with cross-sectional data was adopted. Every civil servant in the office took part (census, n = 60) by completing a questionnaire scored on a five-point Likert scale, and the responses were processed with Partial Least Squares Structural Equation Modeling (PLS-SEM). Digital competence was found to strengthen both performance and psychological empowerment, while empowerment, in turn, contributed to higher performance. Part of the influence of digital competence on performance travelled through empowerment, which means that employees’ digital abilities pay off on their own and also by making staff feel that their work matters, that they are capable, that they have discretion, and that their contribution counts. Health agencies that invest in digital training should therefore pair it with managerial practices that give employees genuine empowerment.
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