Assessing Digital Leadership Styles and Employee Performance in Technology-Driven Private Sector Banks

Abstract

This study investigates the impact of digital leadership styles on employee performance within technology-driven private sector banks in India. Employing a quantitative cross-sectional survey design, data were collected from 90 bank employees using a structured questionnaire measuring digital, transformational, and transactional leadership styles alongside employee performance. Statistical analyses, including correlation and regression, reveal a strong, significant positive effect of digital leadership on employee performance, with transformational digital leadership displaying a stronger association than transactional leadership. These findings underscore the critical role of leadership that inspires innovation, continuous learning, and collaboration through digital tools in enhancing employee efficiency, adaptability, and customer service excellence. The study recommends adopting transformational digital leadership to drive effective digital transformation and achieve a competitive advantage in banking.