The Effect of Digital Transformation on Sustainable Employee Performance with Commitment to Change and Green Work Behavior as Mediation Variables in Employees of the Ministry of Finance in West Sulawesi Province

Abstract

Digital transformation in the public sector requires not only the use of technology but also changes in employee attitudes and behavior to maintain sustainable performance. This study aims to analyze the effect of digital transformation on sustainable employee performance with commitment to change and green work behavior as mediating variables among Ministry of Finance employees in West Sulawesi Province. The study used a quantitative approach with an explanatory design and a cross-sectional survey. The study population consisted of 198 employees spread across six vertical agencies of the Ministry of Finance in West Sulawesi Province and all were targeted by a total sampling technique. Data were collected using a five-point Likert scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares using SmartPLS. The results showed that digital transformation had a positive and significant effect on sustainable employee performance with a path coefficient of 0.24 and a p-value of 0.032. Digital transformation also had an effect on commitment to change of 0.69 and green work behavior of 0.71, each with a p-value <0.001. Furthermore, commitment to change had a 0.28 effect on sustainable employee performance with a p-value of 0.014, while green work behavior had a 0.35 effect with a p-value of 0.002. The mediation effect through commitment to change reached 0.19 with a p-value of 0.021, while mediation through green work behavior was 0.25 with a p-value of 0.005. The model was able to explain 63% of the variation in sustainable employee performance. The study concluded that digital transformation will be more effective in improving sustainable performance if supported by a commitment to change and efficient and environmentally friendly work behavior.