In today's rapidly evolving business environment, digital leadership and digital performance are key focus areas for organizations seeking to maintain a competitive edge. The study analyzes the relationship between digital leadership and digital performance in micro, small and medium-sized enterprises (MSMEs) in Arequipa, Peru, highlighting the mediating role of high involvement human resource management (HI-HRMP), and Dynamic Capabilities Theory (DCT). in this regard raises the question does digital leadership drive digital transformation and improve employee performance through the use of digital technologies.
The research was of explanatory level, a non-experimental quantitative cross-sectional design to explain the variable causality effect on digital performance. For the data analysis, its validity will first be determined through exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) to determine the construct validity, then the Partial Least Squares technique of structural equation modeling (PLS-SEM) was carried out to evaluate the causality of the proposed model, a mediation analysis was carried out using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique with Jamovi 2.6.19 software.
Also, the approach to be used is quantitative non-experimental-transversal design, The unit of analysis consisted of 378 MSMEs in the Province of Arequipa, Peru. The results indicate that there is no significant direct relationship between digital leadership and digital performance. However, digital leadership positively influences human resource management and the development of dynamic capabilities, both factors with a direct impact on digital performance. In addition, job satisfaction is identified as a key factor connecting digital leadership with better performance outcomes.