Performance management systems and digital transformation in the manufacturing sector of Eswatini: The moderating role of leadership behaviours

Abstract

The digitalisation of performance management systems has significantly changed how organisations make decisions as they now have access to real-time performance data. This enables data-driven decision making which aligns operations with strategic objectives. However, there is limited understanding of how leadership behaviours influence the successful implementation of digital performance management systems. The study examines how leadership behaviours influence the connection between performance management systems and digital transformation, in Eswatini's manufacturing industry. A cross-sectional quantitative research method was used to collect survey data form 126 managers in manufacturing firms in Eswatini. Pearson correlation and hierarchical regression analyses were used to evaluate four hypotheses. The findings indicate that leadership behaviours positively correlate with both performance management systems effectiveness and digital transformation. However, the results do not support the idea that leadership behaviours moderate the relationship between performance management systems and digital transformation. The findings offer practical insights for business leaders in Eswatini, highlighting the necessity for focused leadership development programs to support digital transformation in the manufacturing sector. However, concentrating on a single industry and geographic location limits the generalisability of the findings. Future research should consider longitudinal designs and comparative studies across various sectors to gain a deeper understanding of the role of leadership in digital transformation.