The Influence Of Digital Literacy And Information Technology Utilization On Employee Performance With Competency As A Mediation At Communication

Abstract

This research examines the relationships between digital literacy, use of technology, competence, and employee performance in the Department of Communication, Informatics, Statistics, and Encription in Lubuklinggau. This department's persistent underperformance against targets prompted the study, which was attributed to lower than expected employee skills in basic digital systems and e-government applications. The Smart City System's full potential has not been realized because of imbalance digital literacy gaps, underused information systems, and poor staff technical skills. This research seeks to analyze the direct and indirect impacts of digital literacy and technology on employee performance, with competence as a possible mediating variable. For this study, a quantitative research design was adopted, and Structural Equation Modeling (SEM) was conducted using Smart PLS with a purposive sample of 47 employees. It was shown that having proper digital literacy and using information technology both positively influence the work performance of employees. Moreover, both digital literacy and information technology use have a positive indirect impact on performance via the increased level of employee competence, which confirms that competence mediates these relationships. These finding highlight the integrated importance of having proper digital capacity and investing in competence development towards improving employee performance in public organizations.