Innovative culture and rewards-recognition matter in linking transformational leadership to workplace digitalisation?

ABSTRACT

Purpose>This paper aims to examine the mediating effect of innovative culture in the relationship between transformational leadership and workplace digitalisation;and the moderating effect of rewards and recognition on the transformational leadership–innovative culture relationship.Design/methodology/approach>A total of 256 valid samples were used in the structural equation modeling tests. The respondents were management-level executives from companies in Selangor/Kuala Lumpur, Malaysia.Findings>The findings reveal that the transformational leadership–workplace digitalisation relationship is mediated by innovative culture. Besides, rewards and recognition moderate the transformational leadership–innovative culture relationship.Practical implications>This study unpacks the black box to the practitioners how the prominent organisational factors interplay in shaping employees' perception and acceptance of workplace digitalisation.Originality/value>The findings also enrich the interdisciplinary literature on how transformational leadership, rewards-recognition, and innovative culture intersect with employees' perception and acceptance of workplace digitalisation.