Digital Leadership and its Link to Digital Performance in MSME Employees in Arequipa, Peru: The Mediating Effect of Human Resource Management and Dynamic Capabilities

This study delves into the intricate relationship between digital leadership, human resource management, and dynamic capabilities, and their collective impact on digital performance within Peruvian micro, small, and medium-sized enterprises (MSMEs). The research underscores the pivotal role of digital leadership in fostering dynamic capabilities and high-involvement human resource management practices (HI-HRMP), which in turn significantly influence digital performance. Through a comprehensive analysis, the study reveals that digital leadership does not directly impact digital performance but rather exerts its influence indirectly through the development of employees' dynamic capabilities and the implementation of effective HRM practices. The research also highlights the importance of strategic and adaptable digital leadership, the design of HR management practices that foster innovation and digital skills development, and the creation of a positive work environment that motivates employees in the digital transformation process. The study provides valuable insights for MSME leaders, policymakers, and researchers seeking to better understand the role of digital transformation in the success of SMEs in the digital era. By studying the interaction between digital leadership, HI-HRMP, and digital performance, this research refines the understanding of the factors influencing MSME digital transformation and offers empirical evidence on the key drivers of digital performance in MSMEs, facilitating the creation of effective programs and policies.