This study aimed to empirically examine the impact of local government heads' digital leadership on policy outcomes in an administrative environment rapidly undergoing digital transformation. In doing so, it comprehensively examined the mediating effe...
This study aimed to empirically examine the impact of local government heads' digital leadership on policy outcomes in an administrative environment rapidly undergoing digital transformation. In doing so, it comprehensively examined the mediating effects of organizational justice and the moderated mediating effects of digital capabilities. Recent advances in digital technology and the proliferation of data-driven administration in the public sector have fundamentally transformed organizational operations and policy implementation processes. To enhance the performance of public organizations within this changing environment, a new form of leadership, embodying strategic thinking and innovative capabilities, is needed, transcending traditional administrative management. Local governments, in particular, face the dual challenge of simultaneously delivering customized public services to their communities and implementing digital administrative innovation. In this context, digital leadership is emerging as a key factor influencing the competitiveness and policy outcomes of public organizations.
Based on this understanding, this study developed a research model to analyze the structural relationships among digital leadership, organizational justice, policy outcomes, and digital capabilities. Specifically, digital leadership was set as the independent variable, policy performance as the dependent variable, organizational justice as the mediating variable, and digital capabilities as the moderator variable, comprehensively verifying the causal relationships among the variables. Digital leadership was comprised of four subfactors: digital vision and strategy, data and technology utilization, transformation execution and change management, and ethical governance. Organizational justice was categorized into distributive fairness, procedural fairness, interpersonal fairness, and information fairness. Policy performance was further categorized into four dimensions: effectiveness, efficiency, responsiveness, and accountability, providing a multidimensional measure of public organization performance.
For empirical analysis, a survey was conducted with public officials working in local governments in the Daegu area, securing responses from a total of 417 individuals. Analysis was conducted on a valid sample, utilizing SPSS and AMOS. Furthermore, the PROCESS macro and bootstrapping techniques were applied to verify mediating and moderated mediating effects, ensuring the reliability and statistical validity of the analysis.
The results of the study are summarized as follows: First, digital leadership was found to have a significant positive effect on policy performance. This suggests that a higher level of digital leadership among local government heads can lead to improved effectiveness, efficiency, responsiveness, and accountability in policy implementation. In particular, digital vision presentation and transition execution and change management were identified as key factors significantly influencing improved policy performance.
Second, digital leadership was found to have a significant positive effect on organizational justice. This suggests that the more positively organizational members perceive their leaders' digital strategic direction and change management capabilities, the more likely they are to perceive fairness in resource allocation, decision-making processes, interactions, and information provision within the organization.
Third, organizational justice was found to have a significant positive effect on policy performance. These results suggest that fairness perceived by organizational members can act as an important linking factor in the process where the leadership of local government heads leads to policy outcomes in a digital transformation environment.
Fourth, organizational justice partially mediated the relationship between digital leadership and policy performance. Specifically, all four dimensions—distributive, procedural, interpersonal, and informational justice—showed partial mediating effects. This indicates that digital leadership influences policy performance through both direct and indirect pathways: it directly affects policy performance while also enhancing it indirectly through organizational justice.
Fifth, in the process of digital leadership influencing policy performance, the mediating effect of organizational equity will be moderated by the level of digital capability. Specifically, the higher the level of an organization's digital infrastructure, human resource capabilities, and digital literacy, the stronger the effect of digital leadership on policy performance through organizational justice. This suggests that the effectiveness of leadership in a digital transformation environment may vary depending on the level of an organization's digital capabilities.
These results demonstrate that digital leadership is a crucial antecedent to improving policy performance, and this effect operates through organizational justice and varies depending on the level of the organization's digital capabilities. This suggests that improving policy performance in public organizations in a digital transformation environment requires not only strengthening technical capabilities, but also establishing organizational operational structures and leadership systems that organizational members perceive as fair. Therefore, this study aims to theoretically expand the field of digital administration research by empirically elucidating the structural relationships among leadership, organizational justice, digital capabilities, and policy performance in public organizations in the era of digital transformation. At the same time, it holds academic and policy significance in that it provides practical implications for improving the policy performance of public organizations.