<![CDATA[Purpose: This study examines the direct and indirect effects of Digital Competence and Employee Agility on Employee Performance, with Psychological Safety serving as a mediating variable among employees of PT PIP.Research Methodology: This study employed a quantitative explanatory research design. Data were collected from 373 permanent employees of PT PIP using proportionate stratified random sampling, ensuring that each employee stratum was represented proportionally to its size in the population. A structured questionnaire with a five-point Likert scale was used as the research instrument. The data were analyzed using Structural Equation Modeling–Partial Least Squares with SmartPLS version 3.2.9.Results: The findings indicate that Digital Competence and Employee Agility have positive and significant effects on Employee Performance. Both variables also positively influence Psychological Safety, which significantly enhances Employee Performance.Conclusions: The study concludes that improving employee performance in the power generation industry requires not only strong digital competencies and employee agility but also the development of a psychologically safe work environment that enables employees to adapt, collaborate, and perform effectively during digital transformation.Limitations: This study was limited to permanent employees of PT PLN Indonesia Power and employed a cross-sectional research design, which restricts the generalizability of the findings to other industries and organizational contexts.Contributions: This study contributes to the literature on digital transformation and human resource management by integrating Human Capital Theory, Resource-Based View, Social Exchange Theory, and Theory of Performance to explain mediating role of Psychological Safety in the relationships between Digital Competence, Employee Agility, and Employee Performance.]]>
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