Assessing inclusive leadership influence on inclusive climate and digital creativity in the public electricity generation industry

Abstract

The decline of legacy industries necessitates the adoption of modern operational systems for business continuity. This research study investigates this imperative within the South African electricity generation industry, using Eskom as a case study to assess digital transformation technology adoption. The purpose of this study was to assess the impact of inclusive leadership on employee creativity within a digitally transforming environment, with a specific focus on the moderating role of an inclusive climate. This study employed a quantitative, cross-sectional research design to empirically test the hypothesised model. The unit of analysis was individual employees within Eskom who utilise key digital platforms such as ERP SAP, SharePoint, and MS Teams. The study empirically demonstrates that within a legacy organisation, Inclusive Leadership is a critical catalyst for digital transformation, but its influence on Employee Creativity is not direct. Instead, it functions primarily by fostering an Inclusive Climate, which acts as the essential mediating mechanism. A critical finding was the dual nature of the organisational climate itself. The study identified Systemic Organisational Fairness and Support as the foundational element that generates positive effects. Conversely, it reveals the pivotal risk of initiatives eroding Employee Advocacy and Foundational Beliefs. This creates a core tension for leadership: programs designed to foster innovation can, without nuanced management, inadvertently undermine the very trust and empowerment they require to succeed. For legacy institutions, this duality represents the central cultural challenge. The study's paramount practical implication is that a healthy organisational culture is not a mere outcome of digital transformation, but its essential prerequisite. The findings confirm that technology does not fix a broken culture; it amplifies it. Therefore, successful transformation is contingent upon first cultivating a climate that is perceived as both fair enough to trust and safe enough to dare.