Digital Leadership and Organizational Innovation: The Mediating Effect of Knowledge Sharing Among Public Sector Bankers in Khyber Pakhtunkhwa, Pakistan

Abstract

Digital revolution in technology and its rapid evolution has led to changes in the operational framework of banks and other financial organizations. Leaders in such environments require digital capabilities in order to make organizations innovative and adaptive. This paper looks into the relation between digital leadership and organizational innovation where knowledge sharing acts as the mediator variable among bankers working in public sector banks in Khyber Pakhtunkhwa (KP), Pakistan. Quantitative cross-sectional design was used with the help of a structured questionnaire distributed among 445 bankers in KP. Data were analyzed using descriptive statistics, correlation and regression analysis. It was found that digital leadership positively affects organizational innovation. Also, knowledge sharing mediates the relationship between digital leadership and organizational innovation partially. This is due to the fact that the digitally skilled leaders facilitate knowledge sharing among the employees of the organization leading to higher levels of innovation.