Employee engagement mediate: the impact of digital leadership and leadership diversity in shaping operational performance

The hospitality business world's increased emphasis on diversity and employee engagement matches the growing importance of digital leadership in today's technological era. Nevertheless, further investigation is required to comprehend the moderating role of employee involvement in the hotel business regarding the significance of digital leadership and diversity on operational performance. The primary objective of this study is to identify and analyze the factors that influence operational performance, with a particular focus on the effects of digital leadership and leadership diversity. This study explores the influence of the mediating role that employee engagement plays between digital leadership, leadership diversity, and operational performance. Data collection involved a questionnaire distributed to managers and employees randomly at 38 five-star hotels in Sharm el-Sheikh. The findings indicate that digital leadership and employee engagement have significant effects on operational performance. Yet, the presence of leadership diversity did not demonstrate any effect on operational performance. The study identified that employee engagement acts as a mediator in the connection between digital leadership and operational performance. This contribution enhances the dynamic capabilities theory by highlighting the critical role of digital leadership and employee engagement in elevating operational performance within five-star hotels. The results indicate that diversity by itself may not lead to an immediate enhancement in performance; however, it should be strategically utilized to align various perspectives with shared operational objectives. The study indicates that hotels ought to allocate resources towards developing digital leadership skills, implementing training programs and fostering engagement activities to improve achieving operational goals.