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.
