Building Digital Transformation: The Role of Digital Leadership and Digital Innovation in the Performance of Employees at The Ministry of Religious Affairs of Central Sulawesi

Abstract

Digital transformation is a strategic issue in organizational management, including Indonesia’s public sector. The Ministry of Religious Affairs in Central Sulawesi is adopting digital technologies through programs such as PUSAKA SuperApp and SIMKAH, yet faces barriers such as low digital literacy, limited infrastructure, and employee resistance. This conceptual article examines the role of digital leadership and digital innovation in driving transformation and its impact on employee performance. Using a literature-based conceptual approach that integrates Upper Echelons Theory, organizational transformation, and digital innovation, the study highlights that digital leadership shapes organizational direction and culture, while digital innovation mediates the link between leadership and transformation through practical solutions. Successful digital transformation enhances productivity, efficiency, and service quality. Academically, this study broadens the discourse on bureaucratic digitalization in developing countries, while practically, it offers recommendations for leadership strategies, fostering innovation, and improving civil servants’ digital literacy to achieve effective and responsive governance.