Jurnal Manajemen Industri dan Logistik (JMIL) Vol. 8 No.

2 November, 2024, 167-184

Available online at : http://jurnal.poltekapp.ac.id/

Jurnal Manajemen Industri dan Logistik

| ISSN (Print) 2622-528X | ISSN (Online) 2598-5795 |

article category : Logistic Management

The Role of Digital Leadership and Employee Empowerment

on Employees Performance in the Manufacturing Industry in
the Era of Society and Industry Revolution 5.0
Bestadrian Prawiro Theng 1), Calen 2), Nagian Toni 3)
1)
Institut Bisnis IT&B, Medan, Indonesia
2)
Prodi Manajemen, Universitas Murni Teguh PSDKU Pematangsiantar, Indonesia
3)
Fakultas Ekonomi, Universitas Prima Indonesia, Medan, Indonesia

ARTICLE INFORMATION ABSTRACT

Article history: This research aims to analyze the relationship

between digital leadership on employees'
Received: July 29, 2024
performance, digital leadership on organizational
Revised: August 06, 2024
Accepted: November 28, 2024 commitment, organizational commitment and
employees' performance. Research respondents are
456 employees who work in the manufacturing
Keywords: industry The criteria for respondents are permanent
employees, at least have worked for at least 5 years.
Digital Leadership
Manufacturing Industry
This study is quantitative research using the Structural
Society 5.0 Equation Model (SEM) partial Least Square method,
Industry Revolution 5.0 with data processing and analysis using SPSS 26 and
SmartPLS 3.0 software. The majority of hypotheses
developed in this research have been successfully
proven, where digital leadership and employee
empowerment have a direct influence on employee
performance which is mediated by organizational
commitment. between digital leadership and
employee empowerment, organizational
commitment and employee performance in the era of
society 5.0.
This is an open access article under the CC–BY license.

Corresponding Author:
Bestadrian Prawiro Theng
Institut Bisnis IT&B, Medan, Indonesia
Email: [email protected]
© 2024 Some rights reserved

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INTRODUCTION making. About 80% of digital leaders make

data-driven decisions, and two-thirds of them
The era of society 5.0 was introduced by the make decisions in real-time. They tend to be
Japanese government in 2019. After entering more transparent and distribute the decision-
the era of industrial revolution 4.0, we will making process. Prioritize diversity and
enter the era of society 5.0. This concept inclusion. Companies with digital leadership
allows us to use modern-based science for tend to have diversity in their workforce with
human needs with the aim of ensuring that a higher proportion of female employees
humans can live comfortably. Society 5.0 is a than other companies [4]. They also
human-centered and technology-based recognize the positive impact of an inclusive
society concept. In this era, society is culture on company performance. Digital
expected to be able to solve various social leadership is a leader's knowledge so that he
challenges and problems by utilizing various can direct the organization or company he
innovations born in the industrial revolution leads to transform towards digital. Success in
4.0 era to improve the quality of human life increasing employee commitment can grow if
[1]. One of the main challenges faced in the relationship between employees and the
adopting Industry 5.0 is the integration of organization is a building that supports each
new technologies into existing production other in a high community. A similar thing
processes. The use of robotics, the Internet of was also stated by Nimran (2024) who stated
Things (IoT), and more advanced automation that organizational commitment has a
systems requires major changes in work significant effect on performance [5]. The
culture and company infrastructure. There is higher the organizational commitment of
a strong link between organizational employees, the more individual employee
commitment and employee empowerment performance will increase. The relationship
due to the strong will of employees to move between employees and the organization or
forward to face the challenges of company is known as organizational
empowerment. Employees are one of the commitment. One thing that can influence
agency's needs in order to realize company employee performance is organizational
goals. Employee empowerment can also be commitment. What an organization demands
said to be an effort to involve employees to of its members is employee commitment to
be responsible in their work processes [2], the organization at work. Then Nadeem
[3]. (2024) defines organizational commitment as
the attitude of employees to remain in the
Organizations that adopt digital leadership organization and be involved in efforts to
demonstrate better business results. achieve the mission, values and goals of the
Stronger financial performance. organization. Organizational commitment is
Approximately 76% of executives who an important behavioral dimension that can
exercise digital leadership experience greater be used to assess an employee's tendency to
profit acceptance and growth. Employees remain as a member of the organization [5].
feel satisfied and engaged. More than 87% of
employees in organizations that implement The success of digital transformation requires
digital leadership feel happier with their jobs. support from leaders who have the
Loyalty and strong leadership. Digital commitment and awareness to make
leadership has employees who are 21% more changes, prepare the necessary policy
likely to stay in their jobs even though they schemes, understand and map the
have the opportunity to quit. Better decision organization's service business processes,

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prepare digital talent human resources, organization will have a professional attitude
foster a culture of innovation and and uphold the values agreed upon within
collaboration with the digital community and the organization. The existence of good
adequate budget support for governance and organizational commitment from individuals
provision of technology assets [6], [7]. will have a positive impact on good results for
the organization and reduce the intensity of
Employee empowerment means giving members leaving the organization. Employee
employees greater responsibility for making commitment to the organization is very
decisions. In this way, employee initiative can necessary to create a professional work
be much better than that carried out by climate. Commitment can be interpreted as
managers [8]. Empowerment is a sustainable an employee's attitude to remain in the
personal relationship to build trust between organization and be involved in efforts to
employees and management. From the achieve the mission, values and goals of the
description above, it can be concluded that organization [11]. Organizational
empowerment is a process of activities commitment is a reflection of employee
carried out in an effort to encourage and give loyalty and an ongoing process in which
confidence to employees to increase their organizational members express their
potential. Here the role of a leader is really attention to the organization and confidence
needed so that empowerment can run in accepting the organization's values and
effectively. Empowerment is an effort to goals. Organizational commitment is a
encourage or help employees have situation where an employee sides with a
confidence in completing tasks with full particular organization and the goals and
responsibility and make employees desire to maintain membership in that
independent and capable so that employees organization [12]. Employee performance is
feel they have confidence in carrying out an ability that is achieved and desired from
their duties so they can work effectively. employee behavior in carrying out and
Employee empowerment influences work completing work tasks that are their
effectiveness [9]. individual or group responsibility. Employees
who have high performance are a dream for
Organizational commitment is an individual's every organization, because the higher the
desire to remain as a member of the employee's performance, the higher the
organization, accept the goals and values organization's chances of achieving its goals
adopted by the organization and this is quickly [13].
realized through full devotion and loyalty in
accordance with the expected goals and Previous research concluded that digital
values of the organization. Commitment is leadership has a positive and significant
very necessary in ensuring the sustainability relationship on employees' performance, this
and progress of the institution [10]. This is result is in line with which found that digital
because the commitment to increasing the leadership has a positive and significant
competitiveness of an organization really relationship on employees' performance
requires the commitment of its members, in [14]. Leadership in the current digital era is
addition to intellectual and professionalism. strategic leadership that must be able to
Individual commitment to the organization is mobilize organizational resources digitally. A
considered important because employees digital leader is a leader who has digital
who have a high commitment to the awareness in carrying out his leadership

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behavior through a process of collaboration, better understand the company's vision and
innovation and communication with all lines mission and be able to adapt to company goals.
of the organization [15]. The presence of Employee empowerment can improve company
performance because employees are able to
digital leaders can encourage accelerated
decide for themselves what to do. Of course, this
transformation within the organization.
comes with responsibility so that employees
Previous research concluded that employee
don't run away when the work they do isn't up to
empowerment has a positive and significant
standard [24]. Previous research concluded that
relationship on employees' performance, this
organizational commitment has a positive and
result is in line with Hosseini et. al, (2023) [16]
significant relationship on employees'
which found that employee empowerment has a
performance [25]. Several studies have been
positive and significant relationship on
conducted and it was found that there is a
employees' performance. There is a leader who
positive relationship between organizational
always encourages employees to take part in the
commitment and employee performance.
program [17]. Providing attention and
Research conducted by Alagaraja (2015) [26],
opportunities to employees in empowerment
regarding organizational commitment to
activities can lead to employee satisfaction at
employee performance, the results of this
work. This will have a good impact, namely
research state that organizational commitment is
increasing employee performance in the
able to significantly influence the quality of
company. Empowerment has a positive effect on
relationships and employee performance [27].
employee performance [18]. Previous research
concluded that digital leadership has a positive
and significant relationship on organizational RESEARCH METHOD
commitment. Digital leadership provides a
number of benefits [19]. It facilitates better Data collection in this research used a
decision making by leveraging data-driven quantitative survey method by distributing
insights. Leaders can make choices based on real- questionnaires online through distributing
time analysis, enabling rapid response to market questionnaires on social media. The
shifts. Digital leadership is always looking for new questionnaire was designed using a Likert
innovations and is not afraid to try new things. scale of 1 to 7. The Likert scale used in this
They encourage a culture that promotes study was (1) strongly disagree, (2) disagree,
experimentation and creative ideas that support (3) quite disagree, (4) neutral, (5) quite agree,
growth [20]. Digital leadership not only adopts (6) ) agree, (7) Strongly agree. Research
technology, but also drives transformation within
respondents are 456 employees who work in
the organization. They lead the change towards
more innovative and efficient business models. the manufacturing industry The sample for
These traits reflect not only technical expertise, this research was selected using a purposive
but also the ability to adapt, innovate, sampling method among industrial
communicate and lead change in an ever- employees who implement Digital
evolving digital era [21]. Previous research Leadership in the company, namely working
concluded that employee empowerment has a employees. The criteria for respondents are
positive and significant relationship on permanent employees, at least a bachelor's
organizational commitment. This result is in line degree, and have worked for at least 5 years.
with Cahyadi et al.,(2013) [22] which found that The data collection technique was carried out
employee empowerment has a positive and by distributing an initial questionnaire to 30
significant relationship on organizational respondents. This study is quantitative
commitment. Empowerment has a positive effect
research using the Structural Equation Model
on employee performance. Empowerment will
make employees have strong competence and
(SEM) partial Least Square method, with data
attachment to the company [23]. Employees will processing and analysis using SPSS 26 and

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SmartPLS 3.0 software. The reliability test has a positive and significant relationship on
uses Cronbach's Alpha measurement. A organizational commitment
Cronbach's Alpha value that is close to 1 H5: organizational commitment has a
indicates that the reliability of the test is positive and significant relationship on
getting better employees' performance

The hypothesis of this research is In this research, all variables to be studied can
H1: digital leadership has a positive and be described in their dynamics through the
significant relationship on employees' following figure 1.
performance
H2: employee empowerment has a positive
and significant relationship on employees'
performance
H3: digital leadership has a positive and
significant relationship on organizational
commitmentH4: employee empowerment

Figure 1. Research Model.

RESULT AND DISCUSSION graduates. Based on age, the majority of

respondents were aged 21-25 years, namely
Respondents Descriptive 15% of respondents aged 26-30 years, 13%
Research respondents are 456 employees aged 31-35 years, 12% aged 36-40, 20% aged
who work in the manufacturing industry, 68% 41-45, 30% and aged 46-50 years as much as
were female respondents and 32% were 20%. Most of the respondents have worked
male. Almost all respondents were S1 for 5-10 years, namely 62%, while those who
graduates, namely 95% of respondents were have worked for 11-15 years are 18% and
2% Masters graduates and 1% were S3 respondents who have worked for 20%.

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Figure 2. Validity Testing

The outer model test in figure 2 is used to determine whether the data obtained is
determine the validity of each indicator and appropriate and meets the requirements for
test the reliability of the construct. The further testing, namely hypothesis testing.
criteria used to assess the outer model are
convergent validity, discriminant validity and
reliability. Validity and reliability tests aim to

Table 1. Validity testing

Variables Cronbach’s Rho_A Composite AVE

Alpha Reliability
Digital Leadership (DL) 0,8321 0,8024 0,9084 0,908
Employee Empowerment (EE) 0,9081 0,9072 0,9087 0,823
Organizational Commitment (OC) 0,8654 0,9874 0,8094 0,843
Employees` Performance (EP) 0,9081 0,9872 0,8764 0,854

In the validity testing stage in table 1, the Extracted (AVE) calculations in this research
loading factor value required in SmartPLS 3.0 can be said to meet the overall requirements.
is ≥ 0.70 and all indicators have a loading
factor value ≥ 0.70, so that all indicators are
declared valid. The results of the Composite
Reliability (CR) and Average Variance

Table 2. Discriminant Validity

Variables DL EE OC EP
DL 0,965
EE 0,832 0,981
OC 0,876 0,845 0,832
EP 0,732 0,809 0,712 0,912

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The calculation results for the CR and AVE in root of each latent variable is higher than the
table 2 values for the digital leadership correlation with other latent variables
variable are greater than 0.80. Based on these (Fornell-Larcker Criterion) and the indicators
results, it can be said that all constructs have also have a higher correlation with each
been proven to be reliable and can be used latent variable compared with other latent
for testing at the next stage. The Discriminant variables in table 3.
Validity test is declared valid because the AVE

Table 3. Collinearity (VIF)

Variables DL EE OC EP
DL 3,432
EE 3,412
OC 4,241
EP 3,654

R-Square other variables not included in this study. The

Structural test analysis is carried out to find next analysis is that employee performance
out the R2 value in each equation. The R2 variables are jointly influenced by digital
value shows how much the independent leadership, employee empowerment, and
variable can explain the dependent variable. organizational commitment with an R2 value
The results of the analysis show that the of 0.676. Thus, it can be interpreted that
organizational commitment variable is jointly 67.6% of the variance in employee
influenced by the digital leadership and performance can be explained by digital
employee empowerment variables with an leadership, employee empowerment, and
R2 value of 0.560. Thus, it can be interpreted organizational commitment, while the
that 56% of the variance in organizational remaining 32.4% can be explained by other
commitment can be explained by digital variables not included in this study.
leadership and employee empowerment,
while the remaining 44% can be explained by

Table 4. R Square

Variables R Square R Square Adjusted

EP 0,725 0,712
OC 0.689 0.674

Based on the results of the R Square analysis remaining 27.5% was contributed by other
in table 4, it was found that the coefficient of variables. Based on the results R Square
determination for employee performance analysis shows that the coefficient of
was 0.725 or 72.5%, meaning that the determination for organizational
variables digital leadership, employee commitment is 0.689 or 68.9%, meaning that
empowerment and organizational the digital leadership and employee
commitment contributed to the employee empowerment variables contribute to the
performance variable by 72.5% and the organizational commitment variable by

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68.9% and the remaining 31.1% is the following figure 3.

contribution from other variables.
The next analysis is hypothesis testing, the
results of hypothesis testing are shown in the

Figure 3. Hypothesis Testing

Based on the hypothesis testing figure 3, it is the data supports the research hypothesis
known that of the 5 hypotheses formulated, that was developed.
all of them have a T-value above 1.96 so that

Table 5. Hypotheses Testing for Direct Effect

Hypotheses Relationship P Values Decision

H1 DL -> EP 0,000 Supported
H2 EE -> EP 0,000 Supported

H3 DL -> OC 0,000 Supported

H4 EE -> OP 0,000 Supported

H5 OC -> OP 0,000 Supported

Based on the hypothesis testing table 5 1.96 so that the data supports the research
above, it is known that of the 5 hypotheses hypothesis that was developed. This research
formulated, all of them have a T-value above explores and empirically tests the influence of

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digital leadership and employee Direct relationship between employee

empowerment on employee performance empowerment and employee performance
mediated by organizational commitment in Based on the results of structural equation
the Manufacturing Industry. modeling partial least squares (SEM-PLS)
analysis, the p value was 0.000 < 0.050 and
Direct Relationship of digital leadership and the T value was > 1.96, so it was concluded
employee performance that the relationship was significant. This
Based on the results of structural equation research also found a positive influence
modeling partial least squares (SEM-PLS) between employee empowerment on
analysis, the p value was 0.000 < 0.050 and employee performance. These results are in
the T value was > 1.96, so it was concluded line with research Hosseini et. al (2023) [16]
that the relationship was significant. he which shows that employee empowerment
relationship between digital leadership that has a significant positive effect on employee
positively influences employee performance performance. Employee Empowerment is the
is examined in more depth through this study. process of giving power, autonomy and
These results are in line with findings Jiang et. responsibility to employees in making
al (2023) [11] which state that digital decisions and acting to achieve organizational
leadership has a positive influence on goals [19]. The existence of a leader who
organizational performance. Digital always encourages employees to follow the
leadership can be interpreted as a leader's program. Providing attention and
ability to direct and evaluate the company's opportunities to employees in empowerment
digital transformation process in utilizing all activities can lead to employee satisfaction at
the resources and added value the company work [18]. This will have a good impact,
has. In the midst of developments in the era namely increasing employee performance in
where the digital era is starting to be widely the company. Empowerment has a positive
used in various fields, digital leadership can effect on employee performance.
make it easier for companies to take Empowerment will make employees have
advantage of digitalization to gain and strong competence and attachment to the
maintain competitive advantages [1]. Digital company. Employees will better understand
Leadership is not only about the ability to use the company's vision and mission and be able
technology, but also about directing digital to adapt to company goals.
transformation and implementing innovative
strategies to utilize digital technology. This Empowerment provides an important
involves a deep understanding of digital foundation for employees in carrying out
trends, digital transformation, and the use of certain tasks so that these tasks provide
digital technologies to transform and improve useful experience for them and can be used
business operations and interactions with as a guide and reference for subsequent
customers and other stakeholders [5]. tasks. According to Jiang et al.(2023) [11] the
Companies need digital leadership that is importance of employee empowerment,
oriented towards innovation and creativity to because of its benefits for various other
remain competitive. Digital leadership is sources and synergizing every organizational
strategic leadership that utilizes the activity process. According to Faliza et al.
company's digital assets to achieve (2024) [21] human resource empowerment is
organizational goals. This leadership drives a process of business activities to further
transformation within the company [21]. empower people themselves through change
and development. ability, trust, authority and

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responsibility and the framework for the qualifications for job vacancies [1].
implementing organizational activities to However, this understanding is very
improve performance as expected. important in order to create conducive
Empowering employees is something working conditions so that the company can
important, because in facing the era of run efficiently and effectively. Organizational
competition and service, every organization commitment is one of the concepts of work
needs employees who are responsive and attitude because attitude towards work is
independent so that the organization has a related to the presence or absence of a
competitive advantage through its human person's attachment and involvement to the
resources. Empowerment by companies is organization. In this view, individuals who
used as a means to strengthen the have high commitment will prioritize the
capabilities and commitment of employees interests of their organization rather than
[18]. their personal or group interests [9].

Direct relationship between organizational Organizational commitment shows a person's

commitment and employee performance desire to remain in an organization or
Based on the results of structural equation company because they feel they belong to
modeling partial least squares (SEM-PLS) the organization. Someone wants to stay in
analysis, the p value was 0.000 < 0.050 and an organization because someone works in a
the T value was > 1.96, so it was concluded company because they really want to do that
that the relationship was job. Apart from that, it is also due to
significant..Furthermore, organizational considerations of profit and loss, meaning
commitment also has a positive influence on considering what must be sacrificed if he
employee performance. These results are in stays with the organization and other reasons
line with research Gilbert et al, (2021) [18] because he feels he has to stay because of
that organizational commitment is positively loyalty. For individuals with high
related to employee performance which has organizational commitment, achieving
been proven to be significant. Employee organizational goals is important. On the
performance is the main capital for a other hand, individuals or employees with
company to be able to maintain its existence low organizational commitment will have low
in the industrial world. To have good quality attention to achieving organizational goals
and performance, one of the employees must and tend to try to fulfill personal interests.
have a good commitment to the company. Strong organizational commitment within an
With a great sense of belonging to the individual will cause the individual to try hard
organization, an employee is able to work to achieve organizational goals in accordance
more optimally. The next thing found in this with the goals and interests of the
study is that digital leadership has a positive organization and will have a positive outlook
influence on organizational commitment [5]. and strive to do the best in the interests of the
Having organizational commitment in a organization. High commitment makes the
person will create motivation to work as well individual care about the fate of the
as possible in an organization as an effort to organization and try to make the organization
realize common goals. A person's better. Organizational commitment is a
commitment to an organization or company situation where an employee supports a
in the world of work is often a very important particular organization and its goals and
issue. Some organizations include an element desires to maintain membership in that
of commitment as one of the requirements organization. So high job involvement means
for holding a certain position or position in favoring an individual's particular job.

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Organizational commitment in the form of recognizing the importance of combining

confidence, trust and strong acceptance of technology with a broader strategic vision.
the organization's goals and high values will The impact of these initiatives goes beyond
have a good impact on the company in the operational efficiency, it revolutionized the
form of better performance because industry, setting new standards for success.
employees are aware of the company's goals. Digital leadership has a key role and takes a
Several studies have been conducted and it leading position in terms of leadership in the
was found that there is a positive relationship digital era. The advantage of digital
between organizational commitment and leadership in the digital era is that digital
employee performance. leaders can use technology to increase
operational efficiency and speed up response
The Direct Connection of digital leadership times to customers. They can also collect and
and organizational commitment analyze data to make better business
Based on the results of structural equation decisions. In the current era of technological
modeling partial least squares (SEM-PLS) progress, digital leadership is very necessary
analysis, the p value was 0.000 < 0.050 and and strategic because every individual must
the T value was > 1.96, so it was concluded be able to utilize the company's digital assets
that the relationship was significant. This to achieve organizational goals. Digital
shows that leadership is able to increase leadership is strategic leadership that utilizes
organizational commitment. In order to a company's digital assets to achieve
optimize employee performance in a organizational goals. This leadership drives
company, digital leadership and transformation within the company. Digital
organizational commitment will be leadership is not just introducing the use of e-
interconnected. Digital leadership provides a mail, websites and social media as part of
number of benefits. It facilitates better daily work, but what is more important is
decision making by leveraging data-driven utilizing data as an important asset [12]
insights. Leaders can make choices based on
real-time analysis, enabling rapid response to Direct relationship between employee
market shifts [4]. Digital leadership is always empowerment and organizational
looking for new innovations and is not afraid commitment
to try new things. They encourage a culture Based on the results of structural equation
that promotes experimentation and creative modeling partial least squares (SEM-PLS)
ideas that support growth. Digital leadership analysis, the p value was 0.000 < 0.050 and
not only adopts technology, but also drives the T value was > 1.96, so it was concluded
transformation within the organization. They that the relationship was significant. With
lead the change towards more innovative and good employee empowerment, each
efficient business models [15]. These traits employee can make their own decisions
reflect not only technical expertise, but also without violating company regulations. Apart
the ability to adapt, innovate, communicate from that, employees are able to organize
and lead change in an ever-evolving digital work well to improve employee performance
era. Implementing Digital Leadership requires [23]. Empowerment and Effectiveness are
a strong commitment from the leader and his each related and greatly influence each other
team, as well as a readiness to adapt to rapid in decision making. The strategic decision
changes in the world of technology. This making process for the HRM function requires
involves building a strategy that fits the decision making to be sensitive to the
organization's unique needs, as well as effectiveness of the current HRM function

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[13]. This information becomes the basis for improving performance, can also cause
decisions regarding which processes, systems employees to have the desire to end their
and skills need to be improved in employees. duties or leave the organization. Individuals
From several opinions above, it can be who feel satisfied with their jobs tend to stay
concluded that empowerment is related to in the organization, while individuals who feel
effectiveness. Empowerment is an effort to less satisfied with their jobs will choose to
encourage or help employees have leave the organization. Employee
confidence in completing tasks with full empowerment is giving authority to
responsibility and make employees employees to plan, control and make
independent and capable so that employees decisions about the work they are responsible
feel they have confidence in carrying out their for, without having to obtain explicit
duties so they can work effectively. The authority from managers above them.
higher the employee empowerment, the
more their work effectiveness is also high.
Empowerment apart from having an effect on

Table 6. Hypotheses Testing for Indirect Effect

Hypotheses Relationship P Values Decision

H6 DL -> OC->EP 0,000 Supported

H7 EE -> OC->EP 0,000 Supported

The mediating role of organizational achieve the mission, values and goals of the
commitment on the relationship between organization. Individual commitment to the
digital leadership and employee organization is considered important because
performance employees who have a high commitment to
Based on the results of structural equation the organization will have a professional
modeling partial least squares (SEM-PLS) attitude and uphold the values agreed upon
analysis, the p value was 0.000 < 0.050 and within the organization. Success in increasing
the T value was > 1.96, so it was concluded employee commitment can grow if the
that the relationship was significant, relationship between employees and the
organizational commitment is able to organization is a building that supports each
mediate the positive influence of digital other in a high community. The higher the
leadership on employee performance. Rapid organizational commitment of employees,
technological developments require leaders the greater the employee's individual
and employees to adapt to changing times. In performance will increase. This commitment
order to achieve organizational goals, digital encourages someone to stay in the
leaders must be formed with a mindset and organization because of an analysis of the
ability to solve problems and be able to profits or losses they get. Economic value that
maintain relationships between members is felt to be profitable will encourage
and between teams. Employee commitment employees to remain in the organization
to the organization is very necessary to create rather than leave it. In general, the longer a
a professional work climate [25]. person works in an organization, the greater
Commitment can be interpreted as an the fear of losing what has been invested so
employee's attitude to remain in the far. This commitment makes someone think
organization and be involved in efforts to again if they want to leave the organization.

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Leaving the organization will make life's personal freedom at work and finally
burden even heavier due to cost employees will feel satisfied if they have
considerations. The organization becomes a contributed to achieving organizational goals
place that is longed for and develops quickly [9]. Employee empowerment in an
because the people in it are happy and organization includes motivational efforts to
responsible [1]. encourage employees to develop themselves.
Employees are expected to provide
The mediating role of Organizational dedication to the development of the
commitment on the relationship between organization [21]. Employee empowerment is
Empowerment and employee performance important to do because the impact of
Based on the results of structural equation employee empowerment can make
modeling partial least squares (SEM-PLS) employees feel satisfied because employees
analysis, the p value was 0.000 < 0.050 and contribute a lot to achieving organizational
the T value was > 1.96, so it was concluded goals which leads to employee loyalty to the
that the relationship was significant. company. Employee empowerment is
Organizational commitment has also been important in an organization in increasing
proven to be able to mediate the relationship employee loyalty [18]. Employee
between employee empowerment and empowerment is an incentive for employees
employee performance [5]. Employee to carry out work more optimally and
empowerment is considered important confidently. Employee job satisfaction needs
because it can help companies complete to be improved properly so that employee
work. For this reason, it is important for loyalty can arise optimally.
companies to provide training and learning to
improve the skills of each individual in the Practical and managerial implications
company. By providing opportunities to Technological development is an absolute
improve these skills, organizational thing that cannot be avoided. Therefore,
commitment will emerge in employees. In companies must be prepared for this and
this way, employee performance will also think about various strategic steps to be able
increase. Enablement can help organizations to adapt and deal with it. In order to maintain
map out key candidates who will play business existence amidst increasingly fierce
important roles in the future. This activity competition with competitors, companies
supplies potential leaders for strategic must be astute in implementing the right
positions that will be vacated by senior technology for company development.
employees or company executives in the Choosing the right technology will increase
future. These efforts will help organizations the company's efficiency, effectiveness and
overcome the shortage of competent productivity so that the company will
candidates. High or low job satisfaction felt by continue to survive in the industry [13]. Apart
employees is largely determined by from considering the application of
empowering a person in a job. Every technology, companies are also required to
individual at work will feel satisfaction if the pay attention to the quality of human
brand is empowered by the organization [12]. resources within the company.
Employees will feel satisfied if they have an
understanding of their work, employees will The application of new technology should
feel satisfied if they have competencies that also be balanced with increasing HR
are appropriate to their work. Furthermore, competency within the company, so that
employees will feel satisfied if they have each employee is able to adapt and follow

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 Jurnal Manajemen Industri dan Logistik Vol. 8 No. 2 November, 2024, 167-184

technological developments implemented ever-increasing work demands as a

within the organization. So, companies must consequence of the digital transformation
also support each human resource to be able carried out by the company. Managerial
to improve their skills according to the implications show that digital leaders if they
organization's needs at that time through job cannot create a vision of the future that is
training or other employee development unclear and unattractive and do not focus
programs. In this way, both employees and their energy on the vision, long-term goals, do
companies are equally capable and prepared not align and change systems and develop
to face the transition from the 4.0 to 5.0 era. and train others.
The application of the latest technology in
industry will also increase the company's CONCLUSION
competitiveness amidst increasingly fierce
business competition. This also opens up The results of this research digital leadership
opportunities for companies to reach a wider has a positive and significant relationship on
market share. Apart from that, every employees' performance, employee
employee is also required to continue to empowerment has a positive and significant
explore their individual potential in order to relationship on employees' performance,
support individual work performance in the digital leadership has a positive and
company. In the Era of Society 5.0, digital significant relationship on organizational
literacy is no longer just the ability to use commitment, employee empowerment has a
hardware or software, but also involves a positive and significant relationship on
deep understanding of the implications of organizational commitment, organizational
ethics, cybersecurity and artificial intelligence commitment has a positive and significant
[25]. relationship on employees' performance. The
majority of hypotheses developed in this
It is important for individuals and research have been successfully proven,
organizations to increase their digital literacy where digital leadership and employee
and develop relevant technology skills to empowerment have a direct influence on
optimize the benefits of ongoing digital employee performance which is mediated by
transformation. Confident, able to organizational commitment. The higher the
communicate with the team. Visionary, a empowerment of employees in the garment
visionary is a person who has a view or insight industry in digital leadership, the more
into the future. A visionary person has the organizational commitment will increase
right strategy for future steps. Apart from which will encourage performance.
that, they can read existing potential and Employees will do maximum work and show
synergize. a high work ethic if the leader succeeds in
directing the work well and providing
The influence of digital leadership and employee empowerment in accordance with
organizational support on job satisfaction and their respective fields which is able to
engagement, digital leadership from improve employee performance in the
supervisors or managers has a positive and industrial sector. Based on the results of the
significant effect on employee satisfaction analysis, it can be concluded that digital
and engagement. A positive superior attitude leadership can influence company
towards digital technology combined with performance, then Information and
leadership abilities becomes a job resource Communication Technology (ICT) innovation
for employees. This strengthens the is able to strengthen the relationship
resources that employees have to face the between leader digitalization and company

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 Jurnal Manajemen Industri dan Logistik Vol. 8 No. 2 November, 2024, 167-184

performance. This research contributes to employees autonomy in making decisions

leaders continuing to update market needs, related to their work will increase their sense
especially related to rapid technological of ownership and responsibility. This not only
developments following the pattern of increases employees' self-confidence, but
consumer needs to compete in the global also allows them to better overcome
market. In addition, this research has not challenges and create innovative solutions.
considered aspects of the company's internal Building an organizational culture that
resources such as employee readiness and encourages empowerment is an important
employee knowledge regarding technology. step. This involves creating an environment
Training and skills development are where idea sharing, collaboration, and
important assets in empowering employees. responsibility are emphasized. Management
Companies must invest in training programs must set an example in behaving openly
that suit individual needs and job demands. towards feedback, ideas and initiatives from
By developing their skills, employees will feel employees.
more competent in carrying out their duties
and feel more valued by the company. Giving

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BIOGRAPHIES OF AUTHORS

Author 1
Bestadrian Prawiro Theng holds a Doctorate degree in Management
concentrating in Contemporary Human Resource Management in June, 2020 from
Universitas Pasundan, Bandung. He received his MBA from the University of Ballarat
in May, 2012. Dr. Best lectures modules related to Leadership, Entrepreneurship,
Management, and Marketing studies to graduates and undergraduate students in
Institut Bisnis IT&B, Medan, North Sumatera. As a professional in palm oil industry to
date, Dr. Best has been the President Director of RGE’s multinational enterprises. He
is also a BNSP (Badan Nasional Sertifikasi Profesi / National Professional Certification
Agency) and IACT-USA certified Hypnotherapist, certified Neuro Leader, Trainer and
Instructor. Dr. Best is accessible at [email protected].
Author 2
Calen holds a Doctorate degree in Management concentrating in
Contemporary Human Resource Management from Universitas Pasundan, Bandung.
He accomplished his both Magister Manajemen and undergraduate degrees in
Accounting at Universitas HKBP Nommensen, Medan.Dr. Calen has been a lecturer
and Head of PSDKU Universitas Murni Teguh Pematangsiantar, and Vice Rector II in
Universitas Murni Teguh, Medan, North Sumatera, Indonesia.
Dr. Calen is accessible at [email protected] .

Author 3
Nagian Toni graduated with a Doctorate degree in Management
concentrating in Finance from Universitas Pasundan, Bandung. He holds a Magister
Manajemen degree from Universitas Riau, Pekanbaru. He is an alumnus of Faculty of
Mathematics and Natural Sciences (FMIPA), Universitas Sumatera Utara. A state-
certified lecturer, Dr. Nagian Toni gives lectures to Post-Graduate and Graduate
students in the Faculty of Economics, Universitas Prima Indonesia, Medan, North
Sumatera. As a professional, Dr. Nagian Toni is the Director in PT Mahkota Group,
Tbk.
Dr. Nagian Toni is accessible at [email protected] .

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