Digital Governance as a Mediator and Transformational Leadership as a Moderator of Digital Innovation Performance in UAE Public Sector Organizations: An Empirical Investigation Using PLS-SEM

Raja Shaheen Alhammadi

doi:10.36948/ijfmr.2026.v08i02.71875

Digital Governance as a Mediator and Transformational Leadership as a Moderator of Digital Innovation Performance in UAE Public Sector Organizations: An Empirical Investigation Using PLS-SEM

Author(s)	Dr. Raja Shaheen Alhammadi
Country	United Arab Emirates
Abstract	Background: Public sector organizations in the United Arab Emirates (UAE) are undergoing rapid digital transformation, yet empirical evidence on the factors driving digital innovation performance in this context remains scarce. A conceptual framework integrating data ethics, digital transformation, technology adaptation, digital governance (mediator), and transformational leadership (moderator) has been proposed (Alhammadi, manuscript under review) but requires empirical validation. Methods: A cross-sectional survey was administered to 404 employees across 26 public sector organizations in the UAE, spanning utilities, municipalities, health, and education sectors. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS, assessing a reflective measurement model and a structural model encompassing nine hypotheses involving direct effects, mediation, and moderation. Results: The measurement model demonstrated satisfactory reliability (Cronbach’s α > 0.84; composite reliability > 0.89) and validity (AVE > 0.50) for all constructs. The structural model explained 71.2% of the variance in digital innovation performance (R² = 0.712) and 57.1% in digital governance (R² = 0.571). Digital transformation exhibited the strongest direct effect on digital innovation performance (β = 3.705, p < 0.001). Digital governance significantly mediated the relationships between both digital ethics (p = 0.029) and digital transformation (p = 0.002) and innovation performance. Transformational leadership significantly moderated the digital ethics–innovation relationship (p = 0.047) and the technology adaptation–innovation relationship (p = 0.003). Conclusions: The findings confirm that digital governance and transformational leadership are critical intervening mechanisms in driving digital innovation performance in UAE public sectors. Practical implications for policymakers and organizational leaders are discussed.
Keywords	PLS-SEM; digital innovation performance; digital governance; data ethics; digital transformation; technology adaptation; transformational leadership; UAE public sector
Field	Computer
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-29
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.71875

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Digital Governance as a Mediator and Transformational Leadership as a Moderator of Digital Innovation Performance in UAE Public Sector Organizations: An Empirical Investigation Using PLS-SEM

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