The double-edged effects of digital leadership on employee innovation performance: the role of technology self-efficacy and technostress

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Abstract

Rapid advances in digital technology have profoundly reshaped organisational leadership and management, intensifying the complexity and uncertainty of digital transformation. As a pivotal competency in the technological era, digital leadership is instrumental in promoting employee innovation, a cornerstone of sustained competitiveness. Grounded in the Cognitive–Affective Personality System (CAPS) framework, this study examines the paradoxical influence of digital leadership on employees’ innovation performance by tracing both cognitive and affective pathways. Empirical findings reveal a distinctive double‑edged sword effect: digital leadership enhances employees’ confidence in using technology, thereby stimulating innovation through cognitive mechanisms of technology self‑efficacy. Yet, it simultaneously heightens technostress, an affective strain that can suppress creativity and hinder innovation. Moreover, the analysis demonstrates that organisational technology transformation support (OTTS) moderates these dual processes—strengthening the positive cognitive link between digital leadership and self‑efficacy while alleviating technostress’s negative affective impact. By integrating cognitive and affective mechanisms into a unified model, this research advances theoretical understanding of how digital leadership shapes innovative behaviour in technology‑intensive workplaces. It further expands discourse on organisational support during digital transformation, offering actionable guidance for leaders seeking to balance empowerment and emotional well‑being in the digital era.

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