Transformational Leadership and Employee Performance in Malaysia’s F&B Sector: The Mediation Effect of Digital Age Learning Culture

As organisations increasingly operate in digitally driven environments, understanding how leadership translates into performance through learning-oriented cultures has become critical. Despite extensive research on transformational leadership and employee outcomes, limited empirical attention has been given to the mechanisms, particularly digital learning cultures that explain this relationship, highlighting a significant research gap. This study examines the mediating role of Digital Age Learning Culture (DALC) in the relationship between transformational leadership (TL) and employee performance (EP) within the food and beverage (F&B) industry in Malaysia. Adopting a quantitative research design, this study collected survey data from 151 employees in Malaysia’s F&B sector. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS, both measurement and structural models were assessed for reliability, validity, and predictive relevance. Mediation analysis was conducted using bootstrapping techniques to evaluate indirect effects. The findings reveal that TL strongly predicts DALC, which in turn positively influences EP, confirming a significant mediating effect. The model demonstrates substantial explanatory power (R² = 0.629) and strong predictive capability, reinforcing the robustness of the proposed framework. In practice, the findings suggest that organisations and managers, particularly in digitally evolving industries, should cultivate a strong digital learning culture alongside transformational leadership practices to maximise employee performance. Policymakers and HR practitioners can also leverage these insights to design leadership development and digital upskilling initiatives. This study contributes to the literature by integrating leadership theory with digital learning culture, offering a novel explanatory mechanism that enriches the understanding of performance outcomes in modern organisational contexts.

Transformational Leadership, Digital Age Learning Culture, Employee Performance

1. AlAjmi, M., K., (2022). The impact of digital leadership on teachers’ technology integration during the COVID-19 pandemic in Kuwait. International Journal of Educational Research, 112, 1-10. https://doi.org/10.1016/j.ijer.2022.101928 [Google Scholar] [Crossref]

2. Alasqah, W., & Noureldin, A. (2025). The role of digital leadership in fostering innovation: A study on digital organizational culture as a mediator in Saudi higher education. The Financial & Commercial Researches Journal, 26(3), 69-96. https://doi.org/10.21608/jsst.2025.369979.1983 [Google Scholar] [Crossref]

3. Alghazo, A. M. & Al-Anazi, M. (2016). The impact of leadership style on employee’s motivation. International Journal of Economics and Business Administration, 2(5), 37-44. http://files.aiscience.org/journal/article/pdf/70220038.pdf [Google Scholar] [Crossref]

4. Aminah, A., Ambad, S. N. A., Syed Mohd, S. J. A. N. & Lajuni, N. The effect of transformational leadership on employees’ performance in Malaysia’s public sector. Academic Research in Business & Social Sciences, 10(11), 1396-1407. http://dx.doi.org/10.6007/IJARBSS/v10-i11/8363 [Google Scholar] [Crossref]

5. Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psy¬chological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411 [Google Scholar] [Crossref]

6. Arham, A. F., Norizan, N. S., Muhamad Hanapiyah, Z., Mazalan, M. I. & Yanto, H. (2024). Enhancing academic performance: investigating the nexus between digital leadership and the role of digital culture. The Bottom Line, 37(3), 253-276. https://doi.org/10.1108/BL-05-2023-0138 [Google Scholar] [Crossref]

7. Basit, A., Sebastian, V., & Hassan, Z. (2017). Impact of leadership style on employee performance: A case study on a private organization in Malaysia. International Journal of Accounting & Business Management, 5(2), 112-130. 10.24924/ijabm/2017.11/v5.iss2/112.130 [Google Scholar] [Crossref]

8. Bass, B. M., & Avolio, B. J. (1994). Transformational leadership and organizational culture. International Journal of Public Administration, 17(3 & 4), 541-554. https://doi.org/10.1080/01900699408524907 [Google Scholar] [Crossref]

9. Bass, B. M., & Avolio, B. J. (1995). Multifactor Leadership Questionnaire (MLQ). Mind Garden, Inc. [Google Scholar] [Crossref]

10. Bass, B. M., & Bass, R. (2009). The Bass Handbook of Leadership: Theory, Research, and Managerial Applications (4th ed.). Simon and Schuster. [Google Scholar] [Crossref]

11. Becker, J. M., Cheah, J. H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2023). PLS-SEM’s most wanted guidance. International Journal of Contemporary Hospitality Management, 35(1), 321-346. https://doi.org/10.1108/IJCHM-04-2022-0474 [Google Scholar] [Crossref]

12. Benmira, S., & Agboola, M. (2021). Evolution of leadership theory. BMJ Leader, 5, 3-5. https://doi.org/10.1136/leader-2020-000296 [Google Scholar] [Crossref]

13. Caharian, I. S. & Cabanlit, E. M. (2024). A systematic review on the influence of transformational leadership and teacher commitment to education institutions. International Journal of Research and Innovation in Social Science, 8(9), 65-78. https://dx.doi.org/10.47772/IJRISS.2024.809006 [Google Scholar] [Crossref]

14. Cain, M. K., Zhang, Z., & Yuan, K. H. (2016). Univariate and multivariate skewness and kurtosis for measuring nonnormality: Prevalence, influence and estimation. Behavior Research Methods, 49(5), 1716-1735. https://doi.org/10.3758/s13428-016-0814-1 [Google Scholar] [Crossref]

15. Chin, W. W., Marcolin, B. L., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: results from a monte carlo simulation study and an electronic-mail emotion adoption study. Information Systems Research, 14(2), 189-217. http://www.jstor.org/stable/23011467 [Google Scholar] [Crossref]

16. Faul, F., Erdfelder, E., Buchner, A. & Lang, A. G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behaviour Research Methods, 41(4), 1149-1160. doi:10.3758/BRM.41.4.1149 [Google Scholar] [Crossref]

17. Franke, G., & Sarstedt, M. (2019). Heuristics versus statistics in discriminant validity testing: a comparison of four procedures. Internet Research, 29(3), 430-447. https://doi.org/10.1108/IntR-12-2017-0515 [Google Scholar] [Crossref]

18. Fung, C. Y., Lim, A. S. S., Lim, W. M. & Cheong, H. F. (2025). Future of Work in Asia: Transforming Work Models, Workforce Dynamics and Workplace Technology. Springer Cham. https://doi.org/10.1007/978-3-031-95804-5 [Google Scholar] [Crossref]

19. Gao, P., & Gao, Y. (2024). How does digital leadership foster employee innovative behavior: A cognitive-affective processing system perspective. Behavioral Sciences, 14(5), 1-29. https://doi.org/10.3390/bs14050362 [Google Scholar] [Crossref]

20. Gil, A. J., Rodrigo-Moya, B., & Cegarra-Navarro, J. G. (2021). The mediating role of transformational leadership between learning culture and knowledge application. Kybernetes, 50(7), 2093-2105. https://doi.org/10.1108/K-05-2020-0270 [Google Scholar] [Crossref]

21. Hahn, E. D., & Ang, S. H. (2017). From the editors: New directions in the reporting of statistical results in the Journal of World Business. Journal of World Business, 52(2), 125-126. https://doi.org/10.1016/j.jwb.2016.12.003 [Google Scholar] [Crossref]

22. Hair, J. F., Thomas, G., Hult, M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (3rd ed.). Thousand Oakes, CA: Sage. [Google Scholar] [Crossref]

23. Hashim, N., Hussin, H., Abas, N., Ibrahim, S. & Rosalin, S. (2025). Transformational leadership and employee innovation: A literature on motivation and creativity. International Journal of Research and Innovation in Social Science, 9(9), 9539-9555. https://dx.doi.org/10.47772/IJRISS.2025.909000786 [Google Scholar] [Crossref]

24. Henseler, J., Ringle, C., & Sarstedt, M. (2015). A New Criterion for Assessing Discriminant Validity in Variance-based Structural Equation Modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8 [Google Scholar] [Crossref]

25. Hensellek, S. (2020). Digital leadership: A framework for successful leadership in the digital age. Journal of Media Management and Entrepreneurship, 2(1), 55-69. https://doi.org/10.4018/JMME.2020010104 [Google Scholar] [Crossref]

26. Hofstede, G. (1983). The cultural relativity of organizational practices and theories. Journal of International Business Studies, 14(2), 75-89. https://www.jstor.org/stable/222593 [Google Scholar] [Crossref]

27. Hogan, R., & Kaiser, R. (2005). What we know about Leadership. Review of General Psychology, 9 (2), 169-180. https://doi.org/10.1037/1089-2680.9.2.1 [Google Scholar] [Crossref]

28. House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16(3), 321-339. http://www.jstor.org/stable/2391905 [Google Scholar] [Crossref]

29. Huang, M., Zhao, R. & Chen, X. (2026). Digital leadership and employee innovation: A sequential mediation model of job crafting and innovation efficacy. Sage Open, 16(1), 1-12. https://doi.org/10.1177/21582440251411403 [Google Scholar] [Crossref]

30. International Society for Technology in Education (ISTE). (2009). ISTE Standards For Administrators. https://iste.org/standards [Google Scholar] [Crossref]

31. Klingborg, D., Moore, D., & Varea-Hammond, S. (2006). What is leadership? Journal of Veterinary Medical Education, 33(2), 280-283. https://doi.org/10.3138/jvme.33.2.280 [Google Scholar] [Crossref]

32. Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1-10. https://doi.org/10.1007/978-3-319-64069-3_11 [Google Scholar] [Crossref]

33. Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 546-580. https://doi.org/10.17705/1jais.00302 [Google Scholar] [Crossref]

34. Koopmans, L., Bernaards, C., Hildebrandt, V., van Buuren, S., van der Beek, A. J. & de Vet, H., C. W. (2013). Development of an individual work performance questionnaire. International Journal of Productivity and Performance Management, 62(1), 6-28. http://dx.doi.org/10.1108/17410401311285273 [Google Scholar] [Crossref]

35. Lai, F. Y., Lee, J. W., & Wang, D. H. (2022). The effects of transformational leadership dimensions on employee performance in the hospitality industry in Malaysia. Frontiers in Psychology, 13, 1–15. https://doi.org/10.3389/fpsyg.2022.913773 [Google Scholar] [Crossref]

36. Lasrin, H., Rubini, B. & Novita, L. (2025). The effect of transformational leadership and teacher motivation on teacher innovation in secondary school. International Journal of Research and Innovation in Social Science, 9(6), 5997-6007. https://dx.doi.org/10.47772/IJRISS.2025.906000459 [Google Scholar] [Crossref]

37. Lim, C. H. & Teoh, A. P. (2022). Predicting the influence of digital leadership on performance of private higher education institutions: Evidence from Malaysia. Journal of Entrepreneuship, Business and Economics, 10(1), 1-38. [Google Scholar] [Crossref]

38. Macatuno-Nocom, N. (2019). Digital leadership practices of select deans in Philippine State Universities and Colleges: Implications on the 21st century education. International Journal of Global Community, 2(1), 1-22. https://doi.org/10.33473/ijgc-ri.v2i1%20-%20March.8 [Google Scholar] [Crossref]

39. Ramayah, T., Cheah, J., Chuah, F., Ting, H., & Memon, M. A. (2018). Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0: An Updated Guide and Practical Guide to Statistical Analysis (2nd ed.). Kuala Lumpur, Malaysia: Pearson. [Google Scholar] [Crossref]

40. Ramos-Villagrasa, P., Barrada, J. R., Fernandez-del-Rio, E. & Koopmans, L. (2019). Assessing job performance using brief self-report scales: The case of the individual work performance questionnaire. Journal of Work and Organizational Psychology, 35(3), 195-205. https://doi.org/10.5093/jwop2019a21 [Google Scholar] [Crossref]

41. Ringle, C. M., Wende, S., & Becker, J-M. (2022). SmartPLS 4. Oststeinbek: SmartPLS. Retrieved from https://www.smartpls.com [Google Scholar] [Crossref]

42. Senadjki, A., Au Yong, H. N., Ganapathy, T. & Ogbeibu, S. (2024). Unlocking the potential: The impact of digital leadership on firms’ performance through digital transformation. Journal of Business and Socio-economic Development, 4(2), 161-177. https://doi.org/10.1108/JBSED-06-2023-0050 [Google Scholar] [Crossref]

43. Shmueli, G., Ray, S., Velasquez Estrada, J. M., & Chatla, S. B. (2016). The Elephant in the Room: Predictive Performance of PLS Models. Journal of Business Research, 69(10), 4552–4564. http://dx.doi.org/10.1016/j.jbusres.2016.03.049 [Google Scholar] [Crossref]

44. Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive Model Assessment in PLS-SEM: Guidelines for Using PLSpredict. European Journal of Marketing, 53(11), 2322-2347. https://doi.org/10.1108/EJM-02-2019-0189 [Google Scholar] [Crossref]

45. Stone, G., Conley, C. & Luo, Y., (2014). Alternative perspectives on leadership: Integrating transformational leadership with confucian philosophy. Open Journal of Leadership, 3, 30-38. https://doi.org/10.4236/ojl.2014.32004 [Google Scholar] [Crossref]

46. Tan, B. W., Ong, C. H., Tan, O., K., Ho, T. C. F., Chuin, T. P. & Wu, C. H. (2023). An empirical study of leadership styles and employee job performance in the Malaysian private industry. International Journal of Academic Research in Business & Social Sciences, 13(3), 187-193. https://doi.org/10.6007/IJARBSS/v13-i3/16453 [Google Scholar] [Crossref]

47. Tharuni, B. L. S. N., Rebecca, E. & Jawad, M. M. (2025). Impact of transformational leadership on employee reaction to organizational change: The mediation role of Innovative work behaviour and effective communication on IT sector employees. International Journal of Research and Innovation in Social Science, (9)8, 2801-2812. https://dx.doi.org/10.47772/IJRISS.2025.908000229 [Google Scholar] [Crossref]

48. Udin, U. (2023). Linking transformational leadership to organizational learning culture and employee performance: The mediation-moderation model. International Journal of Professional Business Review, 8, 1-17. https://doi.org/10.26668/businessreview/2023.v8i3.1229 [Google Scholar] [Crossref]

• Is Strike Relevant in the Modern Era? Evidence from Indian Manufacturing, IT/Ites, FMCG, Electronics and Emerging Sectors
• A Qualitative Exploration of Work-Life Balance Among Private Universities Lecturers in Klang Valley
• Leadership Styles and Employee Motivation: Examining the Impact on Job Satisfaction and Turnover
• Human Resource Management, Organizational Culture, and Good Governance Practices: A Structural Equation Model on Service Orientation among Government-Owned and Controlled Corporation in Davao Region
• Cost of Silence: Exploring the Impact of Organisational Silence on Employee Engagement