NAVIGATING DIGITAL TRANSFORMATION: THE IMPACT OF EMPLOYEE ENGAGEMENT AND CHANGE READINESS

Authors

  • Ehtisham Ul Haq Faculty of Management Sciences, Riphah International University, Islamabad, Pakistan
  • Nabeel Abid Faculty of Management Sciences, Riphah International University, Islamabad, Pakistan.

DOI:

https://doi.org/10.37435/nbr.v6i2.86

Keywords:

Digital Leadership, Digital Transformation, Employee Engagement, Change Readiness, Healthcare Sector

Abstract

Purpose: This research focuses on the role of digital leadership in the digital transformation of the healthcare sector of Punjab in Pakistan, which is a representative of emerging markets with growing digitalization. It also analyses the mediation effects of employee’s engagement and moderation impact of change readiness.

Design/Methodology: This research paper used a deductive research approach and a quantitative research method. Descriptive cross-sectional study was carried out with 352 employees from different large hospitals of Punjab, Pakistan, using convenience-sampling technique. Validity and reliability of the collected data was tested with the help of ‘SPSS’ to check the hypothesized relationship.

Findings: The findings show that digital leadership has a positive impact on both employee’s engagement and digital transformation. Furthermore, it is possible to establish that employee engagement is actually the variable that mediates the connection between digital leadership and digital transformation, and change readiness actually plays the role of a moderator in that relation, which is why it is so important for developing digital transformation.

Originality: The present research aims to fill the existing literature gap by analyzes the public health sector organization in Punjab, Pakistan, and uses the UTAUT model to test the role of engagement as mediator. It adds fresh theoretical and empirical perspectives to the understanding of digital leadership as a catalyst for change in contexts of limited resources.

References

Abbu, H., Mugge, P., Gudergan, G., Hoeborn, G., & Kwiatkowski, A. (2022). Measuring the human dimensions of digital leadership for successful digital transformation. Research Technology Management, 65(3), 39-49. DOI: https://doi.org/10.1080/08956308.2022.2048588

Armenakis, A. A., & Harris, S. G. (2009). Crafting a change message to create transformational readiness. Journal of Organizational Change Management, 22(6), 683-703.

Avolio, B. J., Walumbwa, F. O., & Weber, T. J. (2014). Leadership: Current theories, research, and future directions. Annual Review of Psychology, 60(1), 421-449. DOI: https://doi.org/10.1146/annurev.psych.60.110707.163621

Bakker, A. B., & Demerouti, E. (2008). Towards a model of work engagement. Career Development International, 13(3), 209-223. DOI: https://doi.org/10.1108/13620430810870476

Buyukbese, T., Dikbas, T., Klein, M., & Unlu, S. B. (2022). Development of the Digital Leadership Scale (DLS). Kahramanmaraş Sütçü İmam University Journal of Social Sciences, 19(2), 740-760. DOI: https://doi.org/10.33437/ksusbd.1135540

Cunha, M. P., Vieira, A. P., & Mata, J. (2015). Leadership styles for IT implementation success: A social cognitive perspective. Information Systems Management, 32(2), 147–168.

Dabbish, L. A., & Kitson, D. (2019). Stakeholder management in digital transformation. Journal of Organizational Change Management, 32(5), 522-538. https://doi.org/10.1108/JOCM-10-2018-0287

Edmondson, A. C. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 359-383. DOI: https://doi.org/10.2307/2666999

Gartner. (2021). Know your digital leadership style and when to adapt it. Retrieved from https://www.gartner.com

Gebauer, J., & Hamlin, M. (2019). Transparency in a digital age: How leaders can build trust through open communication. Business Horizons, 62(3), 367-377.

Gupta, M., & Talele, P. (2020). Understanding the role of organizational change readiness for successful digital transformation. International Journal of Information Management, 54, 102227.

Hanelt, A., Bohnsack, R., Marz, D., & Antunes, M. (2020). Digital leadership and employee engagement: Driving performance in the digital era. Journal of Strategic Information Systems, 29(4), 101623. https://doi.org/10.1016/j.jsis.2020.101623 DOI: https://doi.org/10.1016/j.jsis.2020.101623

Hanelt, A., Kollmann, T., & Frank, H. (2020). Digital transformation leadership: An investigation of the impact on digital transformation success. Journal of Business Research, 110, 126–136.

Hensellek, C. (2020). Leadership and digital transformation in healthcare organizations: A systematic review. Journal of Health Organization and Management, 34(2), 349-370.

Hensellek, S. (2020). Digital leadership: A framework for successful leadership in the digital age. Journal of Media Management and Entrepreneurship, 2(1), 55-69. DOI: https://doi.org/10.4018/JMME.2020010104

Hensellek, S. (2020). Leadership in digital transformation: Skills for today’s leaders. Technology Innovation Management Review, 10(12), 5-12. https://doi.org/10.2139/ssrn.3532047

Ittefaq, F., & Iqbal, S. J. (2018). Digital health in Pakistan: Challenges and opportunities. International Journal of Medical Informatics, 118, 144-150.

Jo, Y., & Hong, A. J. (2023). Development and validation of a readiness for organizational change scale. SAGE Open, 13(4), 21582440231207705. DOI: https://doi.org/10.1177/21582440231207705

Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of management journal, 33(4), 692-724. DOI: https://doi.org/10.5465/256287

Khan, M. A., Rizwan, M., & Ahmed, S. (2021). Perceived organizational support and work engagement among health professionals in Pakistan: The mediating role of well-being and moderating role of resilience. BMJ Open, 13(6), e065678.

Khan, M. A., Sultana, F., & Raza, S. A. (2016). Factors affecting job satisfaction and engagement of healthcare professionals in Pakistan. Cureus, 8(10), e882.

Khoumbati, K., Abbasi, M., Shah, S. G. S., & Stergioulas, L. K. (2018). Integration of public sector healthcare information systems with private sector healthcare providers in Pakistan: Challenges, opportunities, and solutions. DOI: https://doi.org/10.1007/978-3-319-75013-2_18

Khoumbati, K., Patel, S., & Houghton, L. (2018). Digital health strategies in Pakistan: Bridging the healthcare gap through technology. Journal of Global Health, 6(3), 99-108.

Kotter, J. P. (1996). Leadership change. Harvard Business School Press: Boston, MA, USA.

Kotter, J. P., & Cohen, D. S. (2012). The heart of change: Real-life stories of how people change their organizations. Harvard Business Press.

Kremer, A., Henningsson, S., & Steger, M. (2019). Fostering innovation and learning in digital organizations: A managerial framework. Journal of Business Research, 98, 1-9.

Kremer, S., Ueberbach, S., & Gassmann, O. (2019). Digital leadership for corporate venturing: A framework for incumbent firms. Technological Forecasting and Social Change, 146, 101-114.

Li, C. W., Chen, W., & Du, J. (2020). How digital transformation redefines leadership roles. Journal of Organizational Change Management, 33(7), 1289-1301.

Li, Z., Yang, C., Yang, Z., & Zhao, Y. (2024). The impact of middle managers’ digital leadership on employee work engagement. Frontiers in Psychology, 15, 1368442. DOI: https://doi.org/10.3389/fpsyg.2024.1368442

Magesa, M., & Jonathan, J. (2020). Digital leadership for digital transformation.

Noorani, Z., & Lashari, A. A. (2023). Narratives on the digital leadership practices in Pakistan: Issues, challenges, opportunities, needs and constraints in the changing paradigm through the lens of marginalized community members. Global Sociological Review, 8, 63-69. DOI: https://doi.org/10.31703/gsr.2023(VIII-II).08

Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, & Computers, 36(4), 717-731. DOI: https://doi.org/10.3758/BF03206553

Rasheed, M. A., Hookmani, A. A., Waleed, S., Fatima, H. S., Siddiqui, S., Khurram, M., & Hasan, B. S. (2021). Implementation and evaluation of a social media-based communication strategy to enhance experiences from a children's hospital, Pakistan. Frontiers in Public Health, 9, 584179. DOI: https://doi.org/10.3389/fpubh.2021.584179

Sagbas, M., Oktaysoy, O., Topcuoglu, E., Kaygin, E., & Erdogan, F. A. (2023). The mediating role of innovative behavior on the effect of digital leadership on intrapreneurship intention and job performance. Behavioral Sciences, 13(10), 874. DOI: https://doi.org/10.3390/bs13100874

Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600–619. DOI: https://doi.org/10.1108/02683940610690169

Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi-sample study. Journal of Organizational Behavior, 25(3), 293-315. DOI: https://doi.org/10.1002/job.248

Schaufeli, W. B., & Bakker, A. B. (2004). Utrecht work engagement scale: Preliminary manual. Retrieved from https://www.scirp.org/reference/referencespapers?referenceid=1957564

Schneider, C., & Kokshagina, A. (2021). Digital leadership: A literature review and call for research on boundaries and paradoxes. Academy of Management Annals, 15(2), 723-762.

Schneider, C., & Kokshagina, A. (2021). Digital leadership: A systematic review and a future research agenda. European Journal of Work and Organizational Psychology, 30(1), 1-40.

Schneider, S., & Kokshagina, O. (2021). Digital leadership and organizational success: Impact on employee engagement and innovation. Journal of Business Research, 124, 177-184. https://doi.org/10.1016/j.jbusres.2020.09.016 DOI: https://doi.org/10.1016/j.jbusres.2020.09.016

Schneider, S., & Kokshagina, O. (2021). Digital transformation in healthcare: Trends, opportunities, and challenges. Journal of Health Management, 23(1), 11-22. https://doi.org/10.1177/0972063420980562

Shah, N., Zehri, D., Saraih, U. N., Abdelwahed, N., & Soomro, B. (2024). The role of digital technology and digital innovation towards firm performance in a digital economy. Kybernetes, 53, 620-644. DOI: https://doi.org/10.1108/K-01-2023-0124

Toptal. (2024). Three healthcare technology innovations: Driving better outcomes and lower costs. Retrieved from https://www.toptal.com/insights/innovation/three-healthcare-technology-innovations-driving-better-outcomes-and-lower-costs

Ugwu, F. O. (2013). Work engagement in Nigeria: Adaptation of the Utrecht work engagement scale for Nigerian samples. International Journal of Multidisciplinary Academic Research, 1(3), 16-26.

Ukko, J., Nasiri, M., Saunila, M., & Rantala, T. (2019). Sustainability strategy as a moderator in the relationship between digital business strategy and financial performance. Journal of Cleaner Production, 236, 117626. DOI: https://doi.org/10.1016/j.jclepro.2019.117626

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425-478. DOI: https://doi.org/10.2307/30036540

Wang, Q., Zhao, R., & Luo, Y. (2018). The effects of digital leadership on employee engagement: A moderated-mediation model with trust in leadership as a mediator and psychological capital as a moderator. Information & Management, 55(2), 238–251.

Weick, K. E., & Quinn, R. E. (1999). Organizational change and development. In Handbook of organizational behavior (pp. 543-576). Sage Publications. DOI: https://doi.org/10.1146/annurev.psych.50.1.361

World Health Organization (WHO). (2020). Pakistan: A healthcare system facing multiple challenges.

Wright, D. J., Wright, P. M., & McMahan, G. M. (2017). The relationship between CEO digital leadership and employee digital innovation: Examining the role of cultural context. Journal of Business Ethics, 144(4), 759–777.

Wright, L. R., Irwin, J. R., & DeNisi, A. S. (2020). Digital leadership: Understanding the intersection of technology and leadership in modern organizations. Journal of Business and Technology, 12(4), 238-255. https://doi.org/10.1002/j.2311-4093.2020.tb00641.x

Wright, P. M., Irwin, J. A., & DeNisi, A. S. (2020). Digital leadership: A review and integration of theoretical frameworks. Journal of Management, 46(2), 377-413.

Yusif, S., Salifu, M., & Hafeez-Baig, A. B. M. (2020). e-Health readiness assessment factors and measuring tools: A systematic review. International Journal of Medical Informatics. [DOI: 10.1016/j.ijmedinf.2017.08.008] DOI: https://doi.org/10.1016/j.ijmedinf.2017.08.008

Zheng, M., Xu, Z., & Qu, Y. (2022). The effect of mindful leadership on employee innovative behavior: Evidence from the healthcare sectors in China. International Journal of Environmental Research and Public Health, 19(19), 12263. DOI: https://doi.org/10.3390/ijerph191912263

Zheng, Z., Wang, T., & Zhai, L. (2022). The role of digital leadership in fostering creativity and engagement in healthcare: A study of Chinese healthcare organizations. Health Care Management Review, 47(3), 229-238. https://doi.org/10.1097/HMR.0000000000000294 DOI: https://doi.org/10.1097/HMR.0000000000000294

Downloads

Published

2025-01-20

How to Cite

Ul Haq, E., & Abid, N. A. (2025). NAVIGATING DIGITAL TRANSFORMATION: THE IMPACT OF EMPLOYEE ENGAGEMENT AND CHANGE READINESS. NUST Business Review, 6(2). https://doi.org/10.37435/nbr.v6i2.86