AEPH
Home > Economic Society and Humanities > Vol. 2 No. 9 (ESH 2025) >
Digital Leadership in the Digital Economy: Its Impact on Organizational Effectiveness and Employee Motivation
DOI: https://doi.org/10.62381/E254907
Author(s)
Luke Sun*
Affiliation(s)
Baise University, Baise, Guangxi, China *Corresponding Author
Abstract
With the rapid development of the digital economy, businesses are facing unprecedented challenges and opportunities. Digital leadership, as a crucial management tool to cope with these changes, has garnered increasing attention from both academia and industry. This study aims to explore the impact of digital leadership on organizational effectiveness and employee motivation in the digital economy environment. Through a literature review and theoretical analysis, the research constructs a theoretical framework for digital leadership and analyzes its specific mechanisms on organizational effectiveness and employee motivation. The study finds that digital leadership significantly improves organizational effectiveness by optimizing decision-making efficiency, enhancing resource allocation, and promoting innovative collaboration. Meanwhile, digital leadership strengthens employee job satisfaction and innovation motivation by empowering employees, enhancing autonomy, and providing real-time feedback. However, the implementation of digital leadership still faces challenges such as insufficient digital literacy among leaders and differences in employee adaptability. The research concludes that digital leadership is a key factor in driving business transformation and enhancing competitiveness, playing a vital role in employee motivation and organizational effectiveness.
Keywords
Digital Leadership; Digital Economy; Organizational Effectiveness; Employee Motivation; Technology-Driven
References
[1] Liu, F., & Khong-Khai, S. (2024). A comparative study of transactional and transformational leadership in the context of the digital economy. Journal of Southwest Jiaotong University, 59(2), 428–439. [2] Hanandeh, A., Altaher, A. M., Halim, M., Rezk, W., Mahfoudh, N., Hammouri, Q., & Darawsheh, S. R. (2023). The effects of digital transformation, digital leadership, and entrepreneurial motivation on business decision making and business process performance: Evidence from Greater Amman municipality. International Journal of Data & Network Science, 7(2), 713–724. [3] Attah, R. U., Ogunsola, O. Y., & Garba, B. M. P. (2023). Leadership in the digital age: Emerging trends in business strategy, innovation, and technology integration. Iconic Research and Engineering Journals, 6(9), 389-411. [4] Wang, Y., Park, J., & Gao, Q. (2025). Digital leadership and employee innovative performance: The role of job crafting and person–job fit. Frontiers in Psychology, 16, 1492264. [5] Tinmaz, H., Lee, Y. T., Fanea-Ivanovici, M., & Baber, H. (2022). A systematic review on digital literacy. Smart Learning Environments, 9(1), 21. [6] Al-Husban, D. A. A. O., Almarshad, M. N. D., & Altahrawi, M. A. (2021). Digital leadership and organization’s performance: The mediating role of innovation capability. International Journal of Entrepreneurship, 25(5), 1-16. [7] Veithzal, A. P., & Rony, Z. T. (2024). Analysis of implementing digital leadership within organizations. Dinasti International Journal of Digital Business Management, 5(2), 303-316. [8] Luan, H. M., & Van Ninh, N. (2025). Innovation and agility in emerging market e-commerce: The case of Vietnam. WSEAS Transactions on Business and Economics, 22, 644-663. [9] Osman, B. M., & Muse, A. M. S. (2024). Enhancing helpdesk efficiency through management information system–a resource allocation study in technology firms. Quality Innovation Prosperity, 28(3), 63-81. [10] Sharma, S., & Singh, E. N. (2025). Cross-functional collaboration in AI infrastructure launches: Best practices and lessons learned. International Journal of Research in Modern Engineering and Emerging Technology, 13(3), 2320–6586. https://doi.org/10.63345/ijrmeet.org.v13.i3.24 [11] Asfahani, A. M. (2025). Navigating digital leadership: Unraveling the dynamics of remote work environments. TEM Journal, 14(1), 823–835. [12] Lu, C. (2023). A study on the influence of digital leadership on employees’ deviant innovations. Academic Journal of Business & Management, 5(26), 1-8. [13]Musid, N. A., Matore, M. E. E. M., & Hamid, A. H. A. (2023). Communication significance in digital leadership: Does it matter? International Journal of Academic Research in Business and Social Sciences, 13(5), 143-158. [14]Phakamach, P., Panjarattanakorn, D., & Onsampant, S. (2023). Conceptualization and development of digital leadership to drive corporate digital transformation for sustainable success. International Journal of Educational Communications and Technology, 3(2), 30-42.
Copyright @ 2020-2035 Academic Education Publishing House All Rights Reserved