Investigating the mediating role of self-efficacy between digital leadership capability, intercultural competence, and employability among working undergraduates

Abstract

Purpose

Utilizing the Social Cognitive Theory framework, this research aims to illuminate how self-efficacy acts as a mediating factor, enhancing employability among working university students by fostering essential capabilities in digital leadership and intercultural competence.

Design/methodology/approach

Quantitative study with 206 working undergraduates from an Indonesian university. Questionnaires and structural equation modeling (SEM) with SPSS and SmartPLS were used.

Findings

Findings showed that working undergraduate students possess a high level of digital leadership capability and intercultural competence and tend to display increased confidence in their ability to perform challenging tasks and attain anticipated outcomes, thereby enhancing their employability. The integration of these skills, coupled with a solid self-efficacy belief, emerges as a powerful combination in the modern employment landscape in the digital transformation and Artificial Intelligence age.

Research limitations/implications

This research is conducted in one university in Indonesia, potentially limiting its generalizability. Future studies could expand its regions to multiple universities across different countries for a more comprehensive implication.

Practical implications

This research answered the call for strategies from the university level on enhancing the development of essential competencies for working undergraduate students’ employability. It further highlights the necessity for shaping the curriculum to prioritize digital leadership capability, intercultural competence, and the cultivation of self-efficacy among working students.

Social implications

This insight of the research has profound social implications, indicating that educational institutions must adapt their curricula to prioritize these competencies. By doing so, universities can better prepare students to navigate the complexities of the modern workplace, thereby contributing to a workforce that is not only technologically proficient but also culturally adept and resilient in the face of challenges. This adaptation is essential for fostering a generation of graduates who are well-equipped to contribute positively to a diverse and rapidly evolving labor market, ultimately benefiting both the individuals and the wider society by promoting economic development and cultural understanding.

Originality/value

Adopting a quantitative approach, this research offers a data-driven lens of employability determinants, deepening the understanding of how intertwined competencies shape employment outcomes in the AI age.

Citation

Zhan, H., Cheng, K.M., Wijaya, L. and Zhang, S. (2024), "Investigating the mediating role of self-efficacy between digital leadership capability, intercultural competence, and employability among working undergraduates", Higher Education, Skills and Work-Based Learning, Vol. 14 No. 4, pp. 796-820. https://doi.org/10.1108/HESWBL-02-2024-0032

Introduction

Employability, the amalgamation of individual abilities, personality traits, and productivity, is increasingly crucial in navigating today's dynamic job market (De Vos et al., 2021; Zhang and Liu, 2022). This importance is further magnified in the era of Artificial Intelligence (AI), where the landscape of employment is undergoing significant transformation (Donald et al., 2024a, b). Dr Joseph E. Aoun, President of Northeastern University, highlighted at the 2023 World Economic Forum the anticipated upheaval, predicting that over one billion jobs would undergo changes within the next decade due to advancements in AI technology. Concurrently, the prevalence of working students during their undergraduate studies has seen a notable increase in recent decades, with approximately 70% of students engaging in employment (Peltz et al., 2021). This rise in student employment brings attention to the potential impact on their well-being, particularly regarding sleep and mental health (Donald and Jackson, 2022). Consequently, the imperative to assist working undergraduates in enhancing their employability amidst the AI transformation age becomes increasingly urgent. The proliferation of AI has prompted significant shifts in labor markets, resulting in global skill mismatches and widespread unemployment (Singh and Ehlers, 2020). In response, policymakers have advocated for investments in personal skills to foster resilience and facilitate recovery from economic downturns (Dinh et al., 2022). In addition to the challenges posed by AI and digital transformation, Benavides et al. (2020) conducted a systematic literature review focusing on digital transformation (DT) within higher education institutions (HEIs). Their study analyzed nineteen relevant papers spanning from 1980 to 2019, shedding light on the evolving landscape of DT in HEIs and the imperative for further research to address the demands of the fourth industrial revolution. The findings underscored the need for a holistic approach to DT in HEIs, emphasizing the importance of risk management to mitigate the potential disruptions caused by technological innovations. This research offers valuable insights into the challenges and opportunities of digital transformation within higher education, particularly in equipping students with the requisite skills to navigate the shifting demands of AI technology and digital transformation in the workforce (Li et al., 2022). This critique underscores the need for universities to revamp curriculums to align with the demands of the AI age, providing students with practical learning experiences amidst advancing technology. Furthermore, fostering a lifelong learning mindset among students becomes imperative in navigating the ever-changing employment landscape (Aoun, 2023).

In the era of digitalization, possessing digital leadership proficiency is crucial for undergraduate students who are employed. Trenerry et al. (2021) emphasized the importance of effective digital transformation among employees, focusing on factors such as technology adoption, perceptions of technological change, skills and training, workplace resilience, adaptability, work-related well-being, team communication, collaboration, workplace relationships, team adaptability, resilience, leadership, human resources, and organizational culture. Additionally, the review identified key skills for effective leadership in the digital era, including communicating through digital media, high-speed decision-making, managing disruptive change, managing connectivity, and the renaissance of technical skills. These skills are vital for navigating the complexities of the modern workplace and enhancing employability in a technology-driven world. More studies are called for strategies from the university level to enhance the development of digital competence and communication competency for undergraduates’ employability (Abelha et al., 2020). Studies from Web of Science (WoS) and Scopus databases between 2009 and 2019 showed that university students’ employability was mainly conducted within engineering and business majors in Europe (Abelha et al., 2020). Besides this, the main employability issues were related to the mismatch between college students’ competencies and employers’ needs (Abelha et al., 2020).

Digital technology has become increasingly vital, necessitating that students develop strong digital leadership skills to navigate and thrive in a technology-driven world (Baird and Parayitam, 2019). These skills enable students to utilize digital tools and platforms effectively, empowering them to become innovative thinkers, problem solvers, and effective communicators in the digital landscape. Additionally, digital leadership capability enhances self-efficacy among students, fostering greater confidence in their ability to perform challenging tasks and achieve desired outcomes. DeBell and Chapman (2006) emphasize the presence of a digital divide among students, influenced by demographic and socioeconomic factors (He et al., 2021). It fosters confidence in their ability to adapt to new technology, take charge of their digital learning journey, and make meaningful contributions to the digital age (Rini et al., 2022). By developing digital leadership capability, students in Indonesia can nurture their self-efficacy and gain confidence in their abilities to utilize digital technology effectively. Expanding the research model, able to shed light on the potential strategies and interventions that can be implemented to further enhance digital leadership capabilities and ultimately strengthen self-efficacy in this population. Additionally, examining the impact of digital leadership capability on self-efficacy can also contribute to a broader understanding of how these skills can support personal and professional growth in the digital era, specifically in Indonesia.

Moreover, the research's concentration on Indonesia provides significant perspectives on the influence of digital leadership on innovation inside the country. Indonesia, in its early stages of the digital era, has the potential to gain substantial advantages from the growth of digital leadership abilities, as seen in the noticeable rise in innovation observed in recent years. Comprehending the relationship between digital leadership and the expansion of innovation in a developing nation such as Indonesia provides useful insights for other countries experiencing comparable digital changes. This viewpoint illuminates the capacity of digital leadership to stimulate innovation and foster economic expansion in developing nations. The systematic review conducted by Breuer et al. (2015) examines the use of the theory of change (ToC) approach in the design and evaluation of public health interventions on a worldwide scale. The review highlights the extensive use of the ToC strategy in the public health literature, while emphasizing the significance of transparent reporting to improve its practical implementation. The study recommends the use of a checklist to report on the implementation of Theory of Change (ToC) in public health interventions. It emphasizes the need of clarity and consistency in using ToC and highlights the value of strong evaluation methodologies in program design and assessment.

Furthermore, there are few kinds of literature discussing employability, especially within groups of undergraduate students with employment (Small et al., 2018). Universities need to work differently to meet challenges and requirements concerning undergraduate students who work part-time or full-time while attending college. These undergraduate students, who work and study simultaneously, usually report financial strain or lack of financial support from their families, mainly first-generation students, undergraduates with a migration background, or ethnic and racial minority groups (Mishra, 2020).

In the framework of the Social Cognitive Theory (Bandura, 2012), cognition plays a pivotal role in deciding the ultimate behavioral output, even though both the external environment and internal cognition jointly dictate behavior. Cognitive skills, which help in developing knowledge and intelligence capabilities, have been emphasized as crucial elements in numerous studies on employability (Predovic et al., 2021). An integral part of the cognition aspect is self-efficacy, which is constructed through the interplay between personal internal elements and environmental incidents, with its development influenced by a range of factors (Myyry et al., 2021). Nevertheless, the mediation role of self-efficacy on the relations between digital leadership capability and employability and between intercultural competence and employability among college working students has hardly been studied.

Hence, this research aims to fill these gaps by theoretically developing and experimentally testing a conceptual framework that explains how working undergraduate students’ digital leadership capability and intercultural competence influence their employability in Indonesian higher education Institutions. Specifically, a model on the mediating role of self-efficacy in the relationships between digital leadership capability, intercultural competence, and employability was developed from the supporting literature. The proposed model is shown in Figure 1.

Literature review

Digital leadership capability in relation to employability

Digital leadership capability in this research is defined as the capabilities that deal with the consequences of digitization on leadership conceptualization and practice in the virtual space, including digital literacy, positive attitude, skills acquisition, knowledge sharing, and participative style. It is a relatively new concept adopted from the framework of digital leadership, which refers to human behavior and practice through the use of digital tools in the natural and virtual world to overcome challenges of social influence processes through AI or other advanced technologies in the areas of communication, trust, and relationships between leaders and followers (Abbu et al., 2022).

The concept of employability in this study has adopted a subjective approach based on students' self-perception from Andrews and Higson (2008), which refers to skills, understandings, and personal attributes that make an individual suitable to potential employers. Undergoing continuous transformation along with the development of science and technology, the effect of perceived employability becomes more influential as it focuses more on student's internal psychological attributes (Baluku et al., 2020).

There are several academic studies documenting the impact of digital leadership capability dimensions on employability. For instance, there is a concept paper stating that digital literacy would be a boost factor in student employability (Vrana, 2016). Later, empirical research among 916 college students in South Korea supported this positive relationship between digital literacy and perceived employability (Kim, 2020). Positive attitude is one important aspect of soft skills confirmed to affect undergraduate employability positively (Majid et al., 2019; Yudiono and Budiman, 2019). Additionally, there is a design in Indonesia that confirmed that knowledge sharing as a framework of Inquiry-Based Expertise Sharing enhanced graduate employability (Noperman et al., 2019). As the participant style dimensions, there are numerous studies on different leadership styles’ positive effects on undergraduates’ employability (Ayoubi et al., 2017; Sarkar et al., 2017).

The study conducted by Ramos-Monge et al. (2023) explores the deficiencies in soft skills among students enrolled in a technology-focused institution. It highlights the importance of social intelligence, stress management, and self-intelligence abilities in achieving success in academic, personal, and professional settings. The study use natural language processing tools to examine student experiences and emphasizes the significance of universities in tackling weaknesses in soft skills to improve students' prospects of securing employment in the digital labor market. This study offers useful insights into the fundamental soft skills that students need for future success, specifically focusing on digital skills and employability in the Indonesian setting.

Indonesia is rapidly acknowledging the significance of digital skills in relation to employability Sari et al. (2022) emphasize that university students who possess advanced digital skills have a greater likelihood of obtaining employment in the fiercely competitive digital industry. Dewanto and Pritasari (2023) discovered that those who have advanced digital abilities had a clear edge in fields including information technology, digital marketing, and e-commerce. This is consistent with the research conducted by Ramos-Monge et al. (2023), which emphasizes the need of resolving skill deficiencies in order to enhance employability.

Furthermore, possessing digital leadership skills is crucial for effectively overseeing digital changes within organizations. According to Aditya and Nugroho (2021), the inclusion of digital leadership training in university curricula greatly improves students' preparedness for leadership positions in digital settings, making them very desirable to employers. This assertion is corroborated by extensive worldwide research, exemplified by the comprehensive analysis conducted by Van Deursen and Van Dijk (2019), which underscores the pivotal significance of digital literacy and leadership abilities in the progression of one's professional trajectory.

Since the abovementioned research only confirmed each dimension of digital leadership capability has a relationship with college students’ employability, it would be vital to consider how dimensions integrated as digital leadership capability could directly affect employability. Scholars appealed to more research focus on quantitative studies to investigate digital leadership capability, integrity, intent, and results with other concepts’ intercorrelations (Abbu et al., 2022).

As portrayed in the above studies, limited empirical research in higher education on how digital leadership capability contributes to the success of the working undergraduate’s employability. Drawing on the insufficient findings in the current literature, researchers of this study proposed that:

H1.

Digital leadership capability has a significant effect on the employability of working undergraduates.

Intercultural competence in relation to employability

In the early 2010s, university graduates’ good communication skills were considered to be one of their key employability attributes. However, many employers were not satisfied with graduates’ expression and communication abilities (Jones, 2013). Crossman and Clarke (2010) found that international mobility and experience were helpful in improving graduates’ communication skills through foreign language acquisition, the forging of networks, and students’ intercultural understanding and ways of thinking. The notion of “global citizenship” has become popular, and the internationalization of higher education has been widely articulated (Crossman and Clarke, 2010; Jones, 2013; Jakubik, 2022). In such a global context, students’ intercultural competence is important for both living in multicultural communities and their future career development.

Intercultural competence, the ability to effectively communicate and interact with individuals from diverse cultural backgrounds (Ripmeester and Deardorff, 2020), is a crucial skillset increasingly integrated into educational curricula. Studies such as Solchanyk et al. (2021) have demonstrated the positive impact of incorporating intercultural competence into digital curriculum design, leading to enhanced collaboration and respect among students. Indeed, attributes such as respect, open-mindedness, and lifelong learning, integral to intercultural competence, are recognized as essential components of employability skills (Ripmeester and Deardorff, 2020). In a globally competitive job market, employers value graduates with firsthand experience in multicultural environments, highlighting the significance of intercultural competency in today's workforce (Diamond et al., 2011). Furthermore, Donald et al. (2019) emphasize the self-perception of employability among undergraduates, shedding light on the importance of human capital development and career ownership in shaping students' employability perceptions, hence, conducted a systematic literature review to offer the Employability Capital Growth Model (Donald et al., 2024a, b; Akkermans et al., 2024).

Countries like Malaysia and Indonesia, with their multicultural landscapes (Harris and Han, 2021), provide fertile ground for intercultural learning and skill development within educational institutions. However, along with these opportunities come challenges stemming from differing perspectives and cultural backgrounds (Velarde et al., 2020). Educational environments serve as platforms for individuals to engage with diverse cultures, fostering mutual understanding and cognitive cultural intelligence (Earley and Ang, 2003; Gooden and O'Doherty, 2015). In such multicultural societies, effective leadership becomes paramount in navigating complex intercultural dynamics and resolving conflicts (Adams and Velarde, 2021; Velarde et al., 2020). Leaders in academic institutions play a crucial role in mitigating conflicts and addressing the evolving challenges posed by cultural diversity, emphasizing the importance of strong leadership capabilities in culturally diverse settings.

Employability in intercultural competence for undergraduate students refers to the ability to effectively navigate and communicate in diverse cultural settings. This includes understanding and respecting different cultural norms, values, and communication styles. Students who possess intercultural competence are better equipped to work in multicultural environments, collaborate with individuals from various backgrounds, and adapt to different cultural contexts. Developing intercultural competence can enhance students' employability by making them more attractive to employers who value diversity and global perspectives. It involves a continuous learning process that requires self-awareness, empathy, and open-mindedness to effectively engage with people from different cultural backgrounds (Donald et al., 2018). These studies have generally focused on full-time university students and school leaders. Very few studies focused on working adult students’ intercultural competence and employability in Asian backgrounds. Given the fact that Malaysia and Indonesia have a large population of working adult learners at local universities, it is significant and imperative to investigate the working adult’s experience and perceptions of intercultural competence and employability.

H2.

Intercultural competence has a significant effect on employability among the selected participants in this study.

Mediation effect of self-efficacy

Self-efficacy, defined as individuals’ confidence to accomplish tasks or achieve objectives, is recognized as a critical psychological factor influencing favorable results in teaching and learning (Bandura, 2000). This confidence can be enhanced through a variety of strategies, including mastery experiences, observing others' experiences, persuasive attempts, and modifications in emotional and physical states. It is the core of the Social Cognitive Theory (SCT).

There have been contradictory research findings on the relationship between self-efficacy and employability. Some studies (Berntson et al., 2008; Signore et al., 2019) argued that employability influences self-efficacy, but self-efficacy does not necessarily lead to enhanced employability. Self-efficacy reflects a general sense of individuals' ability to perform tasks, whereas employability is influenced by a broader range of specific factors, including formal education, work experience, understanding of the labor market, and the environment in which an individual operates (Berntson et al., 2008). However, other studies have indicated that self-efficacy has a significant positive direct impact on undergraduate employability (Predovic et al., 2021; Weldon and Ngo, 2019). For instance, it has been found to mediate the connection between the transformational leadership of educators and students' employability (Liu et al., 2020), as well as the association between dedication and perceived employability abilities (Chukwuedo and Ementa, 2022).

He et al. (2021) explored the mediating effect of self-efficacy in the relationship between inclusive leadership and employees' pro-social rule-breaking behavior, finding that inclusive leadership positively influences self-efficacy. Similarly, Ashfaq et al. (2021) highlighted the significant impact of self-efficacy in mediating the relationship between ethical leadership and employee engagement. Moreover, He et al. (2023) demonstrated that self-efficacy and social support act as mediators between employment stress and mental health, suggesting that self-efficacy could mitigate the adverse impact of stress on psychological well-being.

Further research shows that a higher level of self-efficacy plays a significant role in converting education into employability (Quiring et al., 2017) and increasing the chances of finding a job (Potgieter, 2012). In Indonesia, students adept in technology can enhance their employability by demonstrating their confidence in their technical skills during job interviews and emphasizing their successful completion of technology-related projects. Additionally, cultivating a strong sense of self-efficacy can result in greater job satisfaction and performance, as individuals confident in their abilities are more inclined to take on complex tasks, set ambitious objectives, and persevere in their endeavors to achieve them. Drawing on the inconsistent findings in the current literature, the researchers of this study propose:

H3.

Self-efficacy has a significant effect on employability among the selected participants.

As for the digital leadership capability, including dimensions of digital literacy, positive attitude, skills acquisition, knowledge sharing, and participative style, the previous research concluded that the topic of digital leadership has not entered its maturity stage and will continue to attract more research (Tigre et al., 2023). Based on the definition of digital leadership capability, specific dimensions of digital leadership, like skills acquisition and development, are significant antecedents of self-efficacy.

Developing digital literacy serves the successful use of modern technology and is significant for maximizing the benefits of learning in the era of new information and communication technologies (Goh et al., 2019). Goh et al. (2019) investigated if a person's technological experience and interactions could predict the amount of stress and workload following a virtual technology training program and found that those who used computers more frequently encountered greater temporal pressure and higher virtual world usage anticipated a decline in temporal demand. Moreover, allowing individuals to explore and practice using virtual technology that has been incorporated into the curriculum may lead to the development of self-efficacy. The implications of this study include constructing new courses or instruments to help individuals obtain digital literacy. Future research is suggested to inquire into digital leadership for promoting metacognition and self-efficacy. To fill this research gap, Hypothesis 4 was proposed:

H4.

Digital leadership capability has a significant effect on self-efficacy among the selected participants.

Students who obtain knowledge and information from teachers’ transformational leadership are more likely to solve difficulties through social contact and share this knowledge, which enhances their self-efficacy (Liu et al., 2020). After their self-efficacy is improved, they become more confident about obtaining more resources (Zhong et al., 2020). Because people who are more confident in their abilities to complete the educational requirements for specific professional responsibilities are more likely to consider and express interest in a broader range of career options, self-efficacy may play a crucial role in graduate employability (Hamzah et al., 2021). Based on Bandura’s Social Cognitive Theory, students with high self-efficacy tend to take a positive attitude and make efforts to overcome various difficulties. They would choose to set high goals, undertake challenging tasks, and remain on the task for a long time. These personal attributes are in accordance with the dimensions of digital leadership: positive attitude, skills acquisition, knowledge sharing, and participative style.

Leadership qualities and self-efficacy together have a significant role in predicting a person's employability. Efficacious people have a strong sense of self-belief and commitment to realize their goals. They are seen as having greater employability because this improves their leadership abilities, and they enjoy taking initiative on the job (Ngo et al., 2017). Along these lines, hypothesis 5 was developed:

H5.

Self-efficacy significantly mediates the relationship between digital leadership capability and employability.

It is concluded that students benefit a lot from their experiences attending multicultural programs, such as studying abroad, in the aspects of intercultural competence, personal awareness, and academic progress (Nguyen et al., 2018; Stone and Petrick, 2013). Multicultural programs can help students develop their sense of agency and self-efficacy in cross-cultural relationships (Covert, 2014). For example, higher self-efficacy has been reported as an outcome of intercultural competence in a college’s multicultural activities among 190 students (Edmonds, 2010).

Meanwhile, students’ self-efficacy and cultural intelligence are critical personal characteristics predictive of better intercultural adjustment for them (Nguyen et al., 2018), because social and institutional elements influence human behavior like intercultural adjustment by way of psychological mechanisms related to self-esteem and self-efficacy (Bandura, 1997). Mastery experience and vicarious experience increase people’s self-efficacy (Bandura, 1997). It is also argued that individuals who believe outcomes are under personal control tend to engage in activities to improve self-efficacy (Wenzel, 1993). Accordingly, better intercultural adjustment and competence might be antecedents to the development of self-efficacy. Along these lines, hypothesis 6 was proposed:

H6.

Intercultural competence has a significant effect on self-efficacy among the selected participants.

Covert (2014) explored U.S. university students’ perceptions of developing intercultural competence during a semester studying abroad and found that the development of intercultural competence was significantly influenced by personal agency. Agency is associated with students’ high self-esteem, confidence, independence, and self-efficacy (Bandura, 1997), and self-efficacy is “the key factor of human agency” (Bandura, 1997, p. 3). Based on social cognitive theory, intentional behaviors, environmental influences, and personal attributes form a triangular relationship of interaction. When participants made intentional changes in their communication and behavior to fit local culture and norms, intercultural competence occurred (Covert, 2014).

As mentioned previously, intercultural competence is crucial for graduates’ employment and career development, and some essential skills in intercultural competence, such as respect, open-mindedness, and lifelong learning, are part of employability skills (Ripmeester and Deardorff, 2020). Accordingly, the researchers of this study proposed:

H7.

Self-efficacy significantly mediates the relationship between intercultural competence and employability.

To fill the above-mentioned gaps, this study plans to adopt the SCT, firstly examining correlations between digital leadership, intercultural competence, and self-efficacy with the employability of graduates through the cognitive and psychological lens. Additionally, this research will also scrutinize the mediating role of self-efficacy between digital leadership, intercultural competence, and employability. By investigating interactions between these constructs, this research would like to offer practical implications for universities and students on how to foster positive interference in enhancing undergraduates’ employability for the future.

Methodology

The study employed a Simple Random Sampling approach to choose a sample of 206 working students. Initially, a comprehensive enumeration of all employed undergraduate students at the designated Indonesian university was conducted, resulting in a total count of 400 students. Subsequently, every student was allocated an exclusive numerical identifier ranging from 1 to 400. In order to guarantee randomness, a random number generator was utilized to generate 206 distinct numbers inside this specified range. The students associated with these randomly generated numbers were chosen to comprise the sample. This methodical approach guarantees that each student has an equitable opportunity to be selected, hence improving the representativeness and dependability of the sample. Subsequently, survey questionnaires were disseminated to the 206 students, who were chosen at random, to gather data for analysis. Table 1 shows the characteristics of the respondents.

The research instrument used in this study was adapted from previous studies as shown in Table 2. The instrument consisted of items rated on a Likert scale ranging from one to five, with a value of one indicating “Strongly Disagree” and a value of five representing “Strongly Agree”. The methodological procedures, rules, and activities were shared with the dean of the Faculty of Creative Industries, Universiti Tunku Abdul Rahman (UTAR) and the research participants before the research commenced. This was done to ensure that all methods were carried out in accordance with relevant guidelines and regulations. Ethical approval for this study was secured from the Chairman of the UTAR Scientific and Ethical Review Committee, with ethical approval (EA) number, U/SERC/56(A)-258/2024.

Structural equation modeling (SEM) represents a second-generation data analysis technique that offers a thorough and systematic method for addressing complex research problems (Hair et al., 2021). SEM is regarded as the most effective method for assessing the direct and indirect pathways due to its ability to analyze intricate and imperceptible latent constructs. SEM comprises internal and external model analyses (measurement and structural model), which scrutinize the connections between independent and dependent variables as well as the relationships between latent constructs and their observable indicators.

Analysis

The current research employed Smart PLS (3.2.9), a statistical instrument, to assess the data using Partial Least Squares Structural Equation Modeling (PLS-SEM). The decision to utilize this analytical method was made after considering the characteristics of the data/sample and the analysis of the mediation construct. The initial stage of assessing PLS-SEM is the measurement model evaluation. Once the measurement model satisfies all essential criteria, the researcher is then obligated to evaluate the structural model.

In the measurement model, it is recommended to have a loading factor of each indicator above 0.70, as it suggests that the construction explains more than 50% of the variance of the indicator, thereby providing an item of reliability that is deemed acceptable. The next step is to evaluate the internal consistency reliability, typically using composite reliability. A higher value generally indicates a higher level of reliability. For instance, a reliability value ranging from 0.60 to 0.70 is considered acceptable when exploring the topic. Convergent validity refers to the degree to which the construct effectively explains the variability of the items. The average extracted variance (AVE) of all items within each construct is the measurement utilized to assess the constructs of convergent validity. According to Hair et al. (2021), the AVE is determined by squaring the loading of each indicator on a construct and calculating the mean value. An acceptable AVE is 0.50 or higher, indicating that the construct accounts for at least 50% of the item variance. To evaluate discriminant validity, one must examine how the construction differs empirically from other constructs in the structural model. Fornell and Larcker introduced conventional metrics and recommended comparing each AVE construct with the correlation between the quadratic constructs of the same construct and all other reflectively measured constructs in the structural model. The total variance of all model constructs cannot exceed their AVE (Henseler et al., 2015). Lastly, the variance inflation factor (VIF) is commonly employed to assess the presence of collinearity among indicators. A VIF value of 5 or higher indicates a significant collinearity issue among the constructs that are measured in a formative manner (Hair et al., 2021).

The next step is the structural model, which represents the connection between constructs obtained by estimating a sequence of regression equations. First, to assess the R-Square value of the endogenous construct, the variance, which is explained in each endogenous construct and serves as an indicator of the model's explanatory capability. R Square values of 0.75, 0.50, and 0.25 can be considered substantial, moderate, and weak (Hair et al., 2021). Researchers also can evaluate the impact of removing certain predictor variables on the squared effect value of endogenous variables. This measure, known as the F-square effect size, which values greater than 0.02, 0.15, and 0.35 indicate small, medium, and large effect sizes, respectively. Another test in the structural model is Q-Square predictive relevance, which is used to confirm the accuracy of the model. For the hypothesis testing, the hypothesis was accepted if the t-statistic >1.96 and the p-value <0.050.

Results

This study considers digital leadership capability as a hierarchical, multidimensional, second-order construct, formed by its first-order dimensions measured through several surveyed items, namely digital literacy (DL), positive attitude (PA), skill acquisition (SA), knowledge sharing (KS), and participative style (PS). While the employability construct as dependent is also considered as second-order construct with several survey items namely general ability (GA), professional ability (PA), attitude (ATT), and career planning (CP).

There are two steps in SmartPLS analysis, namely measurement model and structural model evaluation. The measurement model is analyzed by convergent validity and discriminant validity in Table 3 and Figure 2 shows an overview of measurement model output generated by smartPLS 3.

The reliability measures of Digital Leadership Capability (DLC) demonstrate robust internal consistency and reliability. The robustness of DLC is demonstrated by the range of Cronbach's Alpha values, which span from 0.680 to 0.890, as well as the Composite Reliability values, which range from 0.817 to 0.932. Additionally, the Average Variance Extracted (AVE) falls between 0.600 and 0.820, further supporting the robustness of DLC. The factor loadings had significant magnitudes across the dimensions, suggesting a strong association between the observed indicators and the latent construct.

The construct of self-efficacy (SE) demonstrates favorable dependability, indicating strong internal consistency. The Cronbach's Alpha coefficient of 0.890, the Composite Reliability value of 0.916, and the Average Variance Extracted (AVE) of 0.645 provide evidence that the factor loadings of SE above the permissible criteria. This indicates a robust association between the observed indicators and the underlying concept.

The construct of Intercultural Competence (IC) demonstrates remarkable internal consistency, albeit with a slightly lower average variance retrieved. The Cronbach's Alpha coefficient of 0.951, the Composite Reliability value of 0.955, and the Average Variance Extracted (AVE) of 0.519 demonstrate that the factor loadings of the indicators in the IC model exhibit a satisfactory association with the underlying construct.

The concept of employability is indicative of dependability across various facets. The Employability construct demonstrates adequate factor loadings and reliability measures, as evidenced by Cronbach's Alpha values ranging from 0.796 to 0.872, Composite Reliability spanning from 0.881 to 0.905, and AVEs ranging from 0.530 to 0.761. These findings highlight a robust link between the measured items and the construct.

In the context of structural equation modeling, it is generally accepted that factor loadings exceeding a threshold of 0.5 indicate a satisfactory level of association between reported indicators and underlying latent constructs. It is worth mentioning that certain aspects of Digital Leadership Capability and Employability exhibit values beyond the widely accepted threshold of 0.7, so confirming their strong and dependable nature.

The values obtained for Average Variance Extracted (AVE) as stated in Table 4 indicate the discriminant validity among the constructs. With most constructs exhibiting AVEs surpassing 0.7 or even 0.8, it suggests a substantial differentiation between these variables, affirming their distinctness. Notably, Attitude (ATT), Career Planning (CP), Knowledge Sharing (KS), Participative Style (PS), Positive Attitude (PA), Professional Ability (PR), and Self-Efficacy (SE) showcase particularly high AVEs, exceeding 0.8, signifying strong discriminant validity among these constructs. Digital Leadership (DL) stands out with an AVE surpassing 0.9, indicating exceptional differentiation from other variables. Constructs such as Intercultural Competence (IC) or Skill Acquisition (SA) with AVEs below 0.8 but above 0.7 might display slightly higher correlations with DL. Yet, they maintain adequate distinctness as per accepted discriminant validity criteria. Overall, the AVE values emphasize a robust discriminant validity among most constructs, establishing their individuality within the study.

The Standardized Root Mean Residual (SRMR) value serves as a fit index within structural equation modeling for the purpose of evaluating the typical extent of differences between the observed indicators of constructs and their anticipated correlation values. This metric measures the degree to which the collected data aligns with the model that has been estimated, which SRMR values of 0.06 and higher is considered a good fit (Henseler et al., 2016). This study shows a good fit with the SRMR value 0.079.

Recent studies have emphasized the importance of R² in assessing the explanatory power of the model and the individual predictors (Muzafar et al., 2023) and highlighted the significance of the R² value as a critical metric in PLS-SEM for evaluating the strength of the structural model. Additionally, Dzin and Lay (2021) emphasized the relevance of R² in assessing the validity and reliability of adapted self-efficacy scales using the PLS-SEM approach, further underlining the importance of R² in structural model assessment. The R-square values indicate the extent to which the predictors, specifically the constructs, account for the variability observed in the outcome variables, namely Employability and Self-Efficacy. As shown in Table 5, the factors, in combination, explain roughly 74.6% of the variance seen in employability scores. When evaluating the need for modifications to the number of predictors in the model, it is observed that the modified R-square value stays at a high level of 74.2%. This indicates a strong and reliable fit of the predictors in explaining employability. In a similar vein, the predictors account for approximately 51.8% of the variability found in self-efficacy scores. After making modifications, the corrected R-square value remains constant at 51.3%. The findings suggest that the combination of the included constructs provides a robust explanation for the observed variances in Employability and Self-Efficacy scores. Notably, the predictors demonstrate a greater level of explanatory power for Employability compared to Self-Efficacy within this particular model.

As shown in Tables 6 and 7, in examining the structural model through SmartPLS analysis, several direct and indirect hypotheses were tested to ascertain the relationships between constructs. Results revealed varying levels of support for the hypotheses. The analysis suggested that Intercultural Competence (IC) demonstrates a significant influence on Employability (EMP) (β = 0.245, t = 2.955, p = 0.003), alongside Self-Efficacy (SE) significantly affecting Employability (β = 0.597, t = 7.347, p = 0.000). Moreover, Digital Leadership Capability (DLC) displays a notable impact on Self-Efficacy (β = 0.202, t = 1.901, p = 0.057) and a sequential influence on Self-Efficacy leading to Employability (β = 0.121, t = 1.963, p = 0.050). The strongest relationship observed was between IC and SE (β = 0.558, t = 5.568, p = 0.000), followed by IC influencing SE and subsequently Employability (β = 0.333, t = 4.586, p = 0.000). However, the hypothesis suggesting DLC's direct impact on Employability did not garner significant support in this analysis (β = 0.102, t = 1.070, p = 0.285). These results provide insights into the interrelations among constructs, highlighting the significance of Intercultural Competence, Self-Efficacy, and their subsequent influence on Employability within the examined model.

Discussion

Having strong digital leadership capability is crucial for working undergraduate students in Indonesia, as it allows them to navigate and excel in the ever-evolving digital landscape of the business world. Without this capability, these students may find themselves at a disadvantage when competing for employment opportunities, as employers increasingly seek individuals with digital skills and knowledge. By obtaining expertise in digital leadership, undergraduate students in Indonesia have the potential to establish themselves as valuable resources to employers and enhance their prospects of achieving success in their careers. Furthermore, the attainment of digital leadership proficiency during their undergraduate years will not only offer advantages to these students in the context of employment but also equip them for the forthcoming professional environment, where proficiency in digital skills is progressively crucial across diverse industries. This investigation highlights the significance of integrating digital leadership proficiency into the syllabus and educational initiatives for employed undergraduate students in Indonesia. It proposes that universities and educational establishments ought to prioritize the cultivation of digital leadership aptitudes to equip students for the requirements of the labor market. Moreover, this investigation accentuates the necessity for ongoing research and enhancement in digital leadership education. Through broadening the research model, samples, and statistical tool analysis, forthcoming investigations can further delve into the repercussions and efficacy of digital leadership capability development in the successful execution of digital transformation. Students who possess a strong belief in their own abilities are better prepared to handle the challenges of the workplace and are more likely to approach obstacles with resilience and determination. This confidence in their ability to overcome difficulties can result in a more positive work attitude and a greater sense of fulfillment in their professional pursuits. Hence, promoting self-efficacy among tech-savvy undergraduate students in Indonesia not only benefits their initial employability but also enhances their long-term career prospects and overall well-being. These references emphasize the significance of cultivating self-efficacy among engineering students, as it has a positive correlation with academic accomplishments and success in the field.

The results of this analysis are consistent with prior studies (Avolio et al., 2000; Bandura, 2000; Hamzah et al., 2021; Kim, 2020; Miller et al., 2020; Predovic et al., 2021; Starr et al., 2022; Quiring et al., 2017; Velarde et al., 2020; Vrana, 2016; Weldon and Ngo, 2019) that have emphasized the significance of intercultural competence, self-efficacy, and digital leadership skill in relation to employability and the achievement of career objectives.

The study conducted by Black et al. (1999) placed significant emphasis on the importance of intercultural competence in the efficacy of global leadership. This research highlighted the value of intercultural competence in various professional environments characterized by diversity. Furthermore, the research conducted by Bandura (2000) has provided evidence of the significant influence of self-efficacy on individuals' decision-making regarding their careers, their ability to perform tasks effectively, and their determination to persevere in the face of obstacles. Furthermore, the importance of possessing digital leadership skills in shaping individuals' self-confidence and future job prospects has been emphasized in research conducted by Avolio et al. (2000) as well as Avolio and Kahai (2003). Both theoretical and empirical backing for the links established in the SmartPLS analysis, hence enhancing the credibility and significance of the findings. The incorporation of these discoveries into the current body of literature enhances comprehension of the intricate relationship between intercultural competence, self-efficacy, digital leadership capability, and employability. The research indicates that it would be advantageous for organizations to allocate resources towards fostering the growth of digital leadership proficiency among their leaders in order to maneuver the obstacles presented by the digital age adeptly.

Additionally, the research emphasizes the significance of a leader's ability to envision and implement digital leadership within organizational contexts. By embracing the principles of digital leadership, organizations can retain their competitive edge and flexibly adapt to the intricate and ever-changing environment characterized by factors such as volatility, uncertainty, complexity, and ambiguity (VUCA). This provides significant implications for both research and practical applications within the realm of organizational behavior and human resource management.

Implication

The impact of digital leadership capabilities on employability in the contemporary digital era is considerable, as indicated by Muniroh et al. (2022). Organizations that are equipped with leaders who demonstrate robust digital leadership skills are more likely to not only survive but also flourish amidst the dynamic technological environment. These leaders are equipped with the essential expertise and competencies to successfully navigate digital transformation, make informed decisions, and engage in productive communication with stakeholders across all organizational levels.

Furthermore, digital leaders play a crucial role in initiating innovation and fostering a culture of continuous learning and development within their teams. This ultimately enhances the employability of individuals within the organization, as they acquire the essential digital skills and competencies needed to excel in a technology-driven work environment. The possession of digital leadership capability is not solely advantageous for organizations but also critical for personal employability in the ever-changing job market. Given that technology is continuously reshaping industries and redefining work dynamics, the capacity to lead in a digital setting emerges as a crucial distinguishing factor for professionals. Having digital leadership competencies empowers individuals not only to navigate the digital transformation within their organizations but also to instigate and advocate for change.

The findings of this study have important consequences for research, practice, and society, specifically in relation to digital leadership, intercultural competence, and employability among undergraduate students who are now employed. Developing digital leadership skills not only improves an individual's chances of finding employment but also makes them highly valued in a technology-driven economy. Digital leadership drives organizational success by facilitating the process of digital transformation, encouraging innovation, and promoting ongoing learning. This study expands upon existing leadership theories, such as transformational and adaptive leadership, by highlighting the importance of possessing digital fluency and the capability to lead in technology-intensive settings.

Moreover, the research highlights the significance of intercultural competency, which is essential in a globalized work setting. The study showcases the achievement of good navigation and collaboration within multiple cultural contexts in a digital world by drawing on intercultural communication theories. Individuals possessing a high level of intercultural competence have the ability to communicate proficiently, comprehend and appreciate cultural disparities, and adjust their conduct accordingly, rendering them more adaptable and efficient in international environments.

Self-efficacy, which is based on Bandura's social cognitive theory, is emphasized as essential in today's digital era. Self-efficacy empowers individuals to effectively and creatively utilize digital tools to improve personal and professional productivity and performance. Developing self-efficacy abilities enables anyone, including students and professionals, to effectively adjust to rapid technological progress and proficiently utilize digital tools and platforms in their professional endeavors. This study enhances the existing knowledge by establishing a connection between self-efficacy and digital proficiency, and showcasing how it influences employment.

This research highlights the significance of human-centric abilities that are difficult for artificial intelligence (AI) to imitate, in response to worries regarding AI's ability to take and replace occupations. Human abilities presently exceed AI capabilities in the areas of digital leadership, intercultural competence, and self-efficacy. Digital leaders have the ability to provide guidance on the ethical use of AI and oversee the incorporation of AI into work processes, ensuring that the technology enhances rather than substitutes human employees. Intercultural competence remains crucial since artificial intelligence (AI) does not possess the nuanced comprehension necessary for successful cross-cultural communication and collaboration. Moreover, possessing a strong sense of self-efficacy in utilizing digital technologies enables individuals to collaborate with AI, effectively utilizing its advantages while also keeping a crucial human supervisory role.

This research has numerous practical applications. It is crucial for universities and educational institutions to give priority to developing digital leadership, intercultural competence, and self-efficacy in order to effectively prepare students for the job market. This technique is in line with the study's findings and offers a comprehensive plan for improving employability. Integrating digital leadership training into curricula helps provide students with the necessary skills and knowledge to assume leadership positions in organizations undergoing digital transformation. Intercultural training programmes can improve students' capacity to collaborate efficiently in heterogeneous teams, a highly sought-after skill in the global job market.

Future study should prioritize doing longitudinal studies and cross-cultural comparisons in order to enhance the comprehension of the evolution of digital leadership over time and in many circumstances. Qualitative research approaches, such as interviews, can offer useful insights into individuals' subjective experiences and perceptions of digital leadership, thereby narrowing the divide between theory and practice. The implications align with the paper's results and conclusions, providing a clear plan for utilizing the research to impact public policy, improve teaching methods, and add to the wider knowledge base.

The societal impact of this includes shaping public opinions, enhancing quality of life, and equipping individuals to excel in a digitally interconnected global economy. For working students to effectively negotiate cross-cultural communication and utilize digital technology to improve their personal and professional performance, it is crucial for them to possess both intercultural competence and self-efficacy. This can result in heightened collaboration, ingenuity, and efficiency, empowering individuals to flourish in a multifaceted and swiftly evolving global work milieu. Furthermore, this research provides a well-rounded viewpoint on incorporating AI into the workforce, guaranteeing that technology progress improves human employability by highlighting abilities that AI cannot replace.

Limitations and future research

This study has several limitations that should be acknowledged. First, the respondents were working-students, which may limit the generalizability of the findings to other populations. Second, the study utilized online questionnaires, which can introduce biases such as self-selection and response bias.

Additionally, the cross-sectional nature of this study means that the mediation findings need further exploration and should not necessarily be relied on without caution (Schreurs et al., 2022). The relationships observed in this study provide a snapshot in time, and longitudinal studies are necessary to confirm the directionality and stability of these relationships over time.

Future research should consider conducting longitudinal studies to track changes and developments over time. Cross-cultural research is also suggested to understand how digital leadership is perceived and practiced in different cultural contexts. Furthermore, qualitative research methods, such as interviews, could provide a deeper understanding of individuals' subjective experiences and perceptions regarding digital leadership, offering richer insights that quantitative methods alone may not capture.

Conclusion

The findings highlight the crucial significance of digital leadership skills among employed undergraduate students in Indonesia. Developing this set of abilities is crucial for successfully navigating the ever-changing business environment. It gives students a distinct advantage in job prospects and equips them to meet the challenges of many industries. It is crucial to incorporate digital leadership into education, emphasizing the need for colleges to give priority to the development of this capacity.

Additionally, cultivating self-efficacy among technologically proficient undergraduate students not only improves their chances of finding employment initially but also ensures their long-term job success and overall well-being. These findings are consistent with other studies that highlight the importance of intercultural competence, self-efficacy, and digital leadership in attaining professional goals.

The research not only strengthens these connections but also emphasizes the need for firms to allocate resources toward cultivating digital leadership expertise among their executives. Adopting digital leadership concepts is essential for organizations to be adaptable in the ever-changing and uncertain digital era.

Eventually, this study addresses a significant void by highlighting the central significance of digital leadership and self-efficacy in improving the job prospects of undergraduate students who are already employed. It underscores the pressing need for educational institutions and companies to prioritize the development of these skills.

Figures

Figure 1

Developed model of this research

Figure 2

Smart-PLS 3 measurement model output

Table 1

Characteristics of respondents

Characteristics of respondents		Frequency (N = 206)	Percentage (%)
Gender	Male	98	47.6
	Female	108	52.4
Age	≤20 years old	14	6.8
	21–25 years old	70	34
	26–30 years old	35	17
	31–35 years old	35	17
	36–40 years old	20	9.7
	≥41 years old	32	15.5
Last education	Undergraduate	204	99
	Master/Doctorate	2	1
Working experience	Less than 1 year	28	13.6
	1–3 years	44	21.3
	4–6 years	51	24.8
	7–9 years	22	10.7
	10 years and above	61	29.6
Level of digital literacy	Beginner	56	27.2
	Moderate	130	63.1
	Expert	20	9.7

Source(s): Table by authors

Table 2

Measurement items

Construct/Dimension	Items code	Measurement items
Digital leadership capability (Majid et al., 2019; Yudiono and Budiman, 2019; Tigre et al., 2023)
Digital literacy	DL1	I ensure that each member of the team I directly manage possesses the essential technological expertise required to execute our digital strategy
	DL2	I consistently look for external resources such as advice from thought leaders, collaborative research projects, partnerships, and executive education to support the organization's digital skills
	DL3	I ensure that the whole leadership team possesses a deep understanding of the advantages that our digital technologies bring, both strategically and operationally
Positive attitude	PA1	I consistently advocate for the best interests of our organization
	PA2	I take it upon myself to be accountable
	PA3	I am committed to the success of our organization
Skill acquisition	SA1	I am personally engaged in our endeavors to attract individuals with digital skills to the company
	SA2	I am involved in guiding initiatives aimed at training and realigning the organization's digital competencies
	SA3	I have commenced active initiatives with nearby colleges and universities in order to attract individuals with digital expertise
Knowledge sharing	KS1	I insist we share our knowledge, particularly with other departments/organizations struggling with digital transformation
	KS2	I give every team member the opportunity to present “what they are learning/have learned” to the rest of the organization
	KS3	I have implemented “safety nets” that encourage experimentation and exploration of new knowledge
Participative style	PS1	I require that we celebrate “small wins”, as well as major accomplishments, to motivate team members
	PS2	I prefer “rolling up my sleeves” and working directly with the development teams
	PS3	I make time for people who have questions
Self-efficacy (Hamzah et al., 2021)
Self-efficacy	SE1	I can remain calm when facing difficulties in my job because I can rely on my abilities
	SE2	When I am confronted with a problem in my job, I find several solutions
	SE3	Whatever comes my way in my job, I can handle it
	SE4	My past experiences in my job have prepared me well for my occupational future
	SE5	I meet the goals that I set for myself in my job
	SE6	I am prepared for most of the demands in my job
Intercultural competence (Nguyen et al., 2018; Stone and Petrick, 2013)
Intercultural competence	IC1	I am conscious of the cultural knowledge I use when interacting with people with different cultural backgrounds
	IC2	I know the legal and economic systems of other cultures
	IC3	I enjoy interacting with people from different cultures
	IC4	I change my nonverbal behavior (gestures, actions) when a cross-cultural situation requires it
	IC5	I adjust my cultural knowledge as I interact with people from a culture that is unfamiliar to me
	IC6	I know the rules (e.g. vocabulary, grammar) of other languages
	IC7	I am confident that I can socialize with locals in a culture that is unfamiliar to me
	IC8	I use pause and salience differently to suit different cross-cultural situations
	IC9	I am conscious of the cultural knowledge I apply to cross-cultural interactions
	IC10	I know the arts and crafts of other cultures
	IC11	I am confident that I can get accustomed to the shopping conditions in a different culture
	IC12	I vary the rate of my speaking when a cross-cultural situation requires it
	IC13	I check the accuracy of my cultural knowledge as I interact with people from different cultures
	IC14	I know the cultural values and religious beliefs of other cultures
	IC15	I am sure I can deal with the stresses of adjusting to a culture that is new to me
	IC16	I change my verbal behavior (e.g. accent, tone) when a cross-cultural interaction requires it
	IC17	I think about possible cultural differences before meeting people from other cultures
	IC18	I know the rules for expressing nonverbal behaviors in other cultures
	IC19	I enjoy living in cultures that are unfamiliar to me
	IC20	I alter my facial expressions when a cross-cultural interaction requires it
Employability (Ripmeester and Deardorff, 2020)
General ability	GA1	I have gained the ability to express and communicate
	GA2	I have gained the ability to manage my time
	GA3	I have gained the ability of leadership
	GA4	I have gained the ability to innovate
	GA5	I have gained the ability to do teamwork
	GA6	I have gained the ability to native language
	GA7	I have gained the ability to learn a foreign language
	GA8	I have gained the ability to maintain stability and pressure resistance
Professional ability	PR1	I have gained the ability for professional knowledge and skill
	PR2	I have gained the ability for computer literacy
	PR3	I have gained the ability to apply theories to work
	PR4	I have gained the ability for problem-finding and solving
Attitude at work	ATT1	I have the attitude of learning desire
	ATT2	I have an attitude of plasticity
	ATT3	I have the attitude of understanding professional ethics
Career planning and confidence	CP1	I know how to plan my career development
	CP2	I know the environment and development of the industry I am in
	CP3	I know how to do job searches and self-promotions

Source(s): Table by authors

Table 3

Measurement model evaluation

Construct	Range loading factor	VIF	Cronbach alpha	Composite reliability	Average variance extracted
Digital leadership capability (DLC)
DL1 – DL3	0.884–0.923	2.211–3.067	0.890	0.932	0.820
PA1 – PA3	0.720–0.868	1.334–1.752	0.752	0.857	0.669
SA1 – SA3	0.664–0.829	1.266–1.602	0.680	0.817	0.600
KS1 – KS3	0.813–0.892	1.584–2.160	0.822	0.894	0.738
PS1 – PS3	0.878–0.907	2.188–2.542	0.871	0.921	0.795
Self-efficacy (SE)
SE1 – SE6	0.763–0.836	1.822–2.349	0.890	0.916	0.645
Intercultural competence (IC)
IC1 – IC20	0.576–0.811	1.804–3.517	0.951	0.955	0.519
Employability (EMP)
GA1 – GA8	0.595–0.791	1.407–2.426	0.872	0.900	0.530
PR1 – PR4	0.781–0.877	1.720–2.422	0.848	0.898	0.688
ATT1 – ATT3	0.794–0.867	1.511–3.211	0.796	0.881	0.711
CP1 – CP3	0.856–0.891	1.863–2.886	0.842	0.905	0.761

Source(s): Table by authors

Table 4

Discriminant validity – Fornell Larcker criterion

Constructs	ATT	CP	DL	GA	IC	KS	PS	PA	PR	SE	SA
Attitude	0.843
Career planning	0.795	0.872
Digital leadership	0.435	0.410	0.906
General ability	0.772	0.699	0.438	0.778
Intercultural competence	0.651	0.618	0.546	0.717	0.720
Knowledge sharing	0.461	0.447	0.623	0.552	0.661	0.859
Participative style	0.500	0.485	0.622	0.546	0.648	0.762	0.892
Positive attitude	0.559	0.545	0.661	0.588	0.672	0.641	0.688	0.818
Professional ability	0.769	0.710	0.457	0.811	0.673	0.521	0.559	0.553	0.830
Self-efficacy	0.708	0.709	0.470	0.792	0.706	0.514	0.562	0.607	0.778	0.803
Skill acquisition	0.420	0.420	0.581	0.469	0.577	0.621	0.578	0.604	0.442	0.410	0.774

Note(s): ATT: Attitude; CP: Career Planning; DL: Digital Leadership; GA: General Ability; IC: Intercultural Competence; KS: Knowledge Sharing; PS: Participative Style; PA: Positive Attitude; PR: Professional Ability; SE: Self-Efficacy; SA: Skill Acquisition

Source(s): Table by authors

Table 5

R-Square evaluation

Construct	R square	R square adjusted
Employability	0.746	0.742
Self-efficacy	0.518	0.513

Source(s): Table by authors

Table 6

Structural model evaluation – direct effect

Hypotheses	β	Std. Error	t-value	p-value	Supported	f2	Q2	SRMR
H1: DLC > EMP	0.102	0.095	1.070	0.285	No	0.018	0.384	0.081
H2: IC > EMP	0.245	0.083	2.955	0.003	Yes	0.084
H3: SE > EMP	0.597	0.081	7.347	0.000	Yes	0.679
H4: DLC >SE	0.202	0.106	1.901	0.057	Yes	0.039	0.327
H6: IC > SE	0.558	0.100	5.568	0.000	Yes	0.296

Source(s): Table by authors

Table 7

Structural model evaluation – indirect effect

Hypotheses	β	Std. Error	t-value	p-value	Supported	f2	Q2	SRMR
H5: DLC >SE > EMP	0.121	0.061	1.963	0.050	Yes	0.121
H7: IC > SE > EMP	0.333	0.073	4.586	0.000	Yes	0.333

Source(s): Table by authors