Author(s): Doa' a Ahmad Odeh Al-Husban, Mohammad Nassar Dieb Almarshad, MujahedHani Ali Altahrawi
The spread of the Corona pandemic has significantly affected the global economy, as some industrial sectors incurred heavy losses as a result of the decline in demand for their products. This situation forced organizations to search for solutions that enable them to survive and rethink the implementation of sustainable solutions based on digital development to reduce the volatility in the factors of the dynamic business environment. Therefore, the current research seeks to examine the relationship between digital leadership and an organization's performance through the mediating role of innovation capability. The study population was represented by senior managers in 130 industrial companies in Jordan. The research data was collected through a purposive sample of 248 valid questionnaires for statistical analysis, which constitutes a response rate of 63.59%. Structural Equation Modeling (SEM) was used to analyze the research data and test its hypotheses. The research found a positive impact of digital leadership on the organization's performance and innovation capability, as well as it indicated that innovation capability had a positive impact on the organization's performance. Furthermore, it has been shown that innovation capability plays a mediating role in the relationship between digital leadership and an organization's performance. Therefore, the research contributes to providing a conceptual framework supported by empirical evidence for the development of transformational leadership theory supported by innovation-based models in order to improve the performance of the organization. The research recommends that decision-makers increase investment in R&D activities and integrate an innovation culture at all managerial level of the organization.