TECH-DRIVEN LEADERSHIP AND DIGITAL CULTURE AS CATALYSTS FOR ORGANIZATIONAL TRANSFORMATION IN CHINA’S NEV INDUSTRY: IMPLICATIONS FOR EMPLOYEE ENGAGEMENT

Abstract

The rapid digital transformation in China’s New Energy Vehicle (NEV) industry presents challenges in sustaining employee engagement while adapting to technological change. This study examines the impact of digital leadership on employee engagement, considering the mediating role of dynamic managerial capabilities – sensing, seizing, and reconfiguring and the moderating effect of AI-augmented HRM. A quantitative, cross-sectional survey was conducted with 318 employees from NEV firms. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to assess measurement validity, structural relationships, and indirect and moderating effects. Results show that digital leadership significantly enhances employee engagement directly and indirectly through reconfiguring, seizing, and sensing, with reconfiguring and seizing having the strongest mediating effects. The moderating role of AI-augmented HRM was not supported. The findings contribute to the dynamic capabilities and leadership literature by highlighting how digital leadership drives engagement through capability development. Practically, the study suggests investing in leadership development to strengthen reconfiguring and seizing skills and integrating AI-based HR practices strategically. Limitations include the cross-sectional design, industry-specific focus, and reliance on self-reported data. Future research should employ longitudinal approaches, expand to other sectors, and include additional organizational factors such as digital culture and trust in technology.