Digital Transformation of Human Resources in Islamic Banking: The Role of Digital Leadership and People Analytics in Building a Digital Culture for Performance Improvement (A Study of Islamic Banks in South Sulawesi)

M Yusuf Alfian Rendra Anggoro KR

doi:10.55927/ijbae.v5i1.584

Authors

M Yusuf Alfian Rendra Anggoro KR Universitas Muhammadiyah Makassar

DOI:

https://doi.org/10.55927/ijbae.v5i1.584

Keywords:

Digital Leadership, People Analytics, Digital Culture, Employee Performance, Islamic Banking, Digital Transformation

Abstract

This study aims to analyze the influence of digital leadership and people analytics on employee performance, with digital culture as a mediating variable in Islamic banking in South Sulawesi. A quantitative approach was used, using a survey method with 178 Islamic bank employees selected through stratified random sampling. Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS 4.0. The results showed that: (1) Digital leadership and people analytics have a significant positive effect on digital culture (β=0.42 and β=0.38); (2) Digital culture has the strongest influence on employee performance (β=0.47); (3) Digital culture successfully partially mediates the relationship between digital leadership and people analytics on employee performance. These findings provide practical recommendations for Islamic banks to: (a) develop digital leadership training programs that integrate Sharia values, (b) adopt Islamic-based people analytics, and (c) build a digital culture through an approach aligned with local values in South Sulawesi. Theoretically, this research enriches the literature on digital HR management in Islamic financial institutions by integrating technological perspectives with Islamic values.

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