THE INFLUENCE OF DIGITAL LEADERSHIP ON INNOVATIVE WORK BEHAVIOR WITH THE ROLE OF WORK ENGAGEMENT AND SELF-EFFICACY AS MEDIATORS AMONG EMPLOYES OF STATE-OWNED BANKS IN WEST JAVA

Abstract

The rapid digital transformation in the banking sector demands employees who are capable of generating and implementing innovative ideas, yet the mechanism through which digital leadership drives innovative work behavior remains inconsistent in existing literature. This study aims to examine the influence of digital leadership on innovative work behavior with work engagement and self-efficacy as mediating variables among state-owned bank employees in the West Javaregion. A quantitative approach was employed with data collected through questionnaires distributed to 96 respondents selected via purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results are expected to demonstrate that digital leadership positively influences innovative work behavior, work engagement, and self-efficacy, while both work engagement and self-efficacy positively influence innovative work behavior and simultaneously mediate the relationship between digital leadership and innovative work behavior. These findings contribute theoretically by enriching the understanding of psychological mechanisms linking digital leadership to employee innovation within the digital transformation context of Indonesian state-owned banking. Practically, the findings provide strategic insights for banking management to develop digital leadership approaches that actively foster employee work engagement and self-efficacy as foundational drivers of sustainable innovative behavior.