Strengthening Competitive Performance Through Digital Leadership: A Moderation-Mediation Model

Abstract

Digital transformation has significantly reshaped organizational competitiveness, making digital leadership an essential capability for modern organizations. This study examines the impact of digital leadership on competitive performance while investigating the mediating role of affective commitment and the moderating role of strategic agility in the organizational context of Pakistan. Drawing on the Resource-Based View (RBV) and Dynamic Capabilities Theory, the study proposes that digital leadership enhances organizational competitiveness by strengthening employees’ emotional attachment and improving adaptive organizational capabilities. A quantitative research design was employed, and primary data were collected through a structured questionnaire from employees working in manufacturing, service, and technology-based organizations in Pakistan. A total of 233 valid responses were analyzed using SPSS and AMOS to test the proposed relationships. The findings reveal that digital leadership significantly and positively influences competitive performance. Moreover, affective commitment mediates the relationship between digital leadership and competitive performance, indicating that employees’ emotional attachment helps translate leadership practices into improved organizational outcomes. The results also show that strategic agility strengthens the relationship between digital leadership and competitive performance. This study contributes to the literature by integrating leadership behavior, employee commitment, and organizational agility within a single framework and provides practical insights for organizations aiming to enhance competitiveness in the digital era.