Impact of Ethical Leadership and Digital Work Environment toward Employee Performance: The Role of Work Discipline as Mediation

¹ Postgraduate Program, Universitas Muhammadiyah Yogyakarta, Indonesia
² Department of Management, Faculty of Economic and Business, Universitas Muhammadiyah Yogyakarta, Indonesia
³ School of Commerce and Management Studies, Dayananda Sagar University, Bengaluru, India

^* Corresponding author: ika_nr@umy.ac.id

Abstract

Performance is an organizational achievement that can be a benchmark for whether work is carried out as planned or even exceeds what has been determined. This research aims to provide empirical evidence about how Work Discipline mediates between Ethical Leadership and the Digital Work Environment on Employee Performance. The respondents of this research were employees at state-owned companies in Cilacap, Indonesia using a sampling technique, namely purposive sampling. Using a quantitative approach, primary data was obtained from the results of a closed questionnaire distribution with seven Likert scales. Hypothesis testing uses the SEM-AMOS software analysis tool. This research provides different results from previous studies in that Ethical Leadership does not affect Employee Performance. One of the seven hypotheses was found to be false. Hence, employee performance is positively impacted by the Digital Work Environment, as demonstrated empirically by this study. This study additionally presents evidence that Work Discipline can act as a mediator for the impact of Ethical Leadership and Digital Work Environment on Employee Performance. This study presents empirical results that enhance the understanding of the relationship between the variables under consideration.