Digitalization Training Development Trust and Sustainable Performance: How Ethical Leaders Can Change the Game

Abstract

The main objective of this study is to conceptualize and empirically validate a theoretical framework that explains how digital job resources influence the sustainable performance of IT entrepreneurs (social, economic, environmental, and innovative performance). It draws on the Job Demands-Resources (JD-R) and complexity leadership theories. This study attempts explicitly to investigate how employee trust in leaders is affected by digital job resources, mainly digital training and digital communication. Additionally, it looks into how ethical leadership affects creative work practices and how trust in leadership affects long-term performance. Finally, the study looks at whether trust in leadership, digital job resources, and sustainable performance are all influenced by ethical leadership. Information was gathered from IT enterprises located in Lahore and Islamabad using convenient sampling procedures. 250 samples were used for the final data analysis. The study assumptions were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM) with Smart PLS 3.0. The results show that digital training and digital communication significantly influence trust in leadership. However, trust in leadership significantly impacts sustainable performance (social, economic, environmental, and innovative performance). Furthermore, trust in leadership mediates digital training, digital communication, and sustainable performance (social, economic, environmental, and innovative performance). Lastly, ethical leadership indirectly moderates digital training, digital communication, and sustainable performance (social, economic, environmental, and innovative).