Integrative Model of Employee Productivity Based on Digital Capability, Leadership, and Operational Excellence

Abstract

This study develops an integrative model of employee productivity by examining the roles of digital capability, leadership, and operational excellence in the context of digital transformation within Indonesia’s food and beverage manufacturing industry. Although previous studies have investigated these constructs separately, limited research has integrated them into a comprehensive structural framework. A quantitative explanatory design was employed using survey data collected from 200 employees of PT Ultrajaya Milk Industry & Trading Company Tbk. The proposed relationships were analyzed using Structural Equation Modeling (SEM). The findings reveal that digital capability is the strongest determinant of employee productivity, followed by leadership, while operational excellence significantly enhances productivity and partially mediates the effects of both digital capability and leadership. The results indicate that organizations can achieve sustainable productivity by simultaneously strengthening employees’ digital competencies, developing transformational leadership, and fostering operational excellence. The study contributes to the Resource-Based View and Human Capital Theory by demonstrating that technological capability, leadership quality, and organizational processes function as complementary strategic resources for improving workforce productivity. Practically, the findings provide managerial guidance for designing integrated digital transformation and human capital development strategies to enhance organizational competitiveness.