DIGITAL LEADERSHIP AND EMPLOYEE CREATIVITY: THE MEDIATING ROLE OF EMPLOYEE JOB CRAFTING IN SELECTED BANKS OF BATTICALOA DISTRICT

Abstract

In the rapidly evolving landscape of the banking sector, digital leadership has emerged as a critical driver of organizational success and innovation. This study investigates the relationship between digital leadership and employee creativity, with a specific focus on the mediating role of employee job crafting in selected banks of Batticaloa District. In addition to this, the researcher identified the level of these variables, their impact, and relationship between them. While there has been lack of research conducted in this area. Utilizing a sample of 287 banking employees, data were collected through structured questionnaires and analyzed using (SPSS 25.0 Version). The findings reveal that a significant and strong positive relationship between digital leadership and employee creativity, indicating that effective digital leadership fosters an environment conducive to creative outcomes. Moreover, the study that employee job crafting partially mediates this relationship between digital leadership and employee creativity, employees' proactive modification of their job roles as a key mechanism through which digital leadership enhances creativity. The results from the regression analysis, employing the PROCESS 4.0 version, demonstrate that employee job crafting partially mediates the relationship between digital leadership and employee creativity, explaining 37Yo of the effect. These findings underscore the importance of empowering employees to tailor their job roles, thereby unlocking their creative potential and driving organizational innovation. The study provides valuable insights for banking sector leaders, and HR practitioners aiming to cultivate a more innovative and adaptive workforce through strategic leadership and employee engagement initiatives and emphasizing the need to foster digital leadership capabilities and support job crafting initiatives to enhance employee creativity and, ultimately, organizational performance, This research contributes to the understanding of how digital leadership and job crafting collectively influence employee creativity within the banking sector. It underscores the strategic significance of integrating digital leadership practices with initiatives that encourage job crafting, thereby promoting a culture of continuous innovation and adaptability in the dynamic banking environment.