Digital mindset, organizational culture, and sustainable employee performance: The role of employee engagement

Abstract

Objectives: This study examines the effects of digital mindset and organizational culture on sustainable employee performance, with employee engagement tested as a mediating variable among Bank Indonesia employees. Methodology: A quantitative, cross-sectional explanatory survey invited all 200 employees in six Bank Indonesia work units to participate. The questionnaire produced 180 valid responses. The reflective first-order model was analyzed with SEM-PLS using SmartPLS 4 and one-tailed bootstrapping with 5,000 subsamples. The initial 36 indicators were reduced to 28 after measurement-model evaluation. Finding: Digital mindset positively and significantly affected sustainable employee performance and employee engagement. Organizational culture also positively and significantly affected both outcomes. Employee engagement had a positive but nonsignificant effect on sustainable employee performance and did not mediate either the digital mindset or organizational culture relationship with sustainable employee performance. Conclusion: Strengthening digital mindset and organizational culture provides the clearer direct route to sustainable performance, while engagement initiatives require supportive work design, adequate resources, workload management, and employee well-being to produce a stronger performance contribution.