The role of transformational leadership in promoting digital transformation through employee engagement in public administration Free

In recent years, the public sector has undergone an unprecedented technological revolution characterized by artificial intelligence, big data, digitization and automation of administrative tasks. Digital transformation is a key goal for governments around the world, offering benefits such as transparency, accountability, and data accessibility (AlNuaimi et al., 2021; Mustafa et al., 2022). However, implementing digital transformation in public administration poses significant challenges, particularly in terms of leadership and employee engagement.

Transformational leadership has emerged as a key factor in driving digital transformation and fostering innovation within organizations (Bass and Riggio, 2006). This approach focuses on the leader’s ability to inspire and motivate his or her employees, thereby creating an environment conducive to change and adaptation. In the public sector, transformational leaders face unique challenges in balancing stakeholder interests while influencing employees to use new technologies effectively (Ly, 2024).

Employee engagement, defined as the degree of attachment, exchange and relationship between stakeholders in the public sector (Bakker et al., 2023), plays a key role in the success of digital transformation initiatives. Engaged employees are more likely to embrace change, contribute to innovation and actively participate in the digital transformation process (Bakker et al., 2023).

In a world where success organizations recognize the value of their employees in organizational development, employees who feel valued and engaged actively contribute to their institutions (Rahmadani et al., 2025). Therefore, transformational work environments are needed to drive organizational change and improve workplace participation (Bah et al., 2024). Transformational leaders play an important role in inspiring and guiding employees to exceed expectations by promoting a vision of positive change (Akhtar and Riaz, 2024). By setting a vision for change and aligning employees with organizational goals, transformational leaders facilitate smoother digital transitions and increased engagement (Arnold et al., 2024).

Despite the existing literature indicating a positive impact of transformational leadership on employee engagement and digital transformation, there is a lack of comprehensive analysis regarding the complex interactions and processes inherent in this relationship (Irianto and Basbeth, 2021; Mishra et al., 2023). The interaction between these components in the public sector is under-researched, especially in developing nations. Furthermore, empirical studies that contextualize these dynamics in the Tunisian public sectors are scarce, representing a significant gap in the literature (Boukamcha, 2023).

This study aims to fill the gap by examining the influence of transformational leadership on digital transformation via employee engagement in the Tunisian public administration, specifically analyzing the Ministry of Education as a case study.

To better understand the specific dynamics of the Tunisian context, it is essential to recognize the unique challenges faced by the public sector in terms of employee engagement and digital transformation. As a post-revolutionary country, Tunisia operates within a distinct leadership and digital transformation framework, influenced by the political and social political and social changes that have taken place since 2011 (Boukamcha, 2023). However, unlike more developed countries, Tunisia faces specific obstacles that affect both employee engagement and the prospects for successful prospects for successful digital transformation. These challenges include low resistance to transformational leadership and a slow pace of digitization. Employee engagement in the public sector is particularly low, due to cultural factors, such as a hierarchical organizational, culture that inhibits employee initiative and participation (Harb and Sidani, 2019), and political factors, where a legacy of instability and mistrust of government institutions exacerbates disengagement (Fletcher et al., 2020; Chiwawa, 2022). Resistance to transformational leadership is compounded by traditional autocratic management styles that emphasize control, which is at odds with the collaborative nature of transformational methods (Harb and Sidani, 2019). This resistance is further reinforced by skepticism about change, fueled by a history of unsuccessful reforms (Boukamcha, 2023). Finally, a major obstacle to the effective implementation of digital transformation projects is the slow pace of digitization, hampered by inadequate infrastructure and internet access, a lack of digital skills among staff and rigid bureaucratic procedures (Dema et al., 2023; Mulyani, 2024; Ouyang and Jiao, 2021).

The Tunisian public sector faces significant challenges, including administrative inefficiency and a high absenteeism rate, underscoring as the need to embrace transformational leadership to enhance organizational commitment and effectiveness (Boukamcha, 2023).These issues exacerbated by outdated management frameworks and a lack of employee motivation, call for structural reforms to modernize the administration and improve overall performance. In addition, Tunisia’s organizational culture requires a transition to a strategic leadership model that focuses on values and human capital. This transition is essential to attract talent and enable progressive changes in management practices. The study of the Tunisian public sector offers an opportunity to explore an area relatively unexplored area of academic literature, thereby making a significantly to the discourse on transformational leadership and digital transformation.

The circumstances in Tunisia illustrate the difficulties faced by other public bureaucracies in similar circumstances, particularly in developing countries that have recently undergone political transitions. The challenges of employee engagement and technology adoption are common in these contexts (Irianto and Basbeth, 2021), providing a relevant framework for exploring the role of transformational in overcoming these obstacles. Transformational is essential in this contexts, as it can overcome cultural and organizational barriers to digital transformation by motivating teams to embrace change (Bakker et al., 2023).

By integrating transformational leadership theory with social exchange theory, it is possible to develop a conceptual model that examines these relationships. Social exchange theory posits that interactions between leaders and employees are based on reciprocal exchanges, where employees' perceived support can influence their engagement (Irianto and Basbeth, 2021; Mishra et al., 2023).This study also draws on Social Exchange Theory (SET) to explain the underlying mechanisms through which transformational leadership influences employee engagement and, subsequently, digital transformation. SET posits that when leaders provide support, recognition, and opportunities for growth (i.e. engage in transformational leadership behaviors), employees feel obligated to reciprocate with increased engagement and commitment to organizational goals. In the context of digital transformation, this means that employees are more likely to adopt new technologies, participate in training and contribute to innovative solutions. By explicitly linking transformational leadership to employee behavior through the lens of SET, we provide a more nuanced understanding of the process by which leadership can drive successful digital transformation in the public sector.

Therefore, this study poses two research questions: (1) How does transformational leadership influence employee engagement in the context of digital transformation in public administration? and (2) To what extent does employee engagement mediate the relationship between transformational leadership and digital transformation ?.

To address these research questions, this study adopts a quantitative research approach, using Structural Equation Modeling (SEM) to empirically test the formulated hypotheses. Our study contributes to the existing literature by providing empirical insights into the interplay between transformational leadership, employee engagement and digital transformation in the public sector of a developing country. In addition, it provides practical recommendations for public sector leaders and policy makers who wish to enhance their digital transformation initiatives and promote employee engagement (Boukamcha, 2023).

The article is structured as follows: We will begin with a review of the literature on transformational leadership, digital transformation and employee engagement. Next, we will describe our research methodology, followed by a presentation of the findings. Finally, we will discuss the implications of our findings and propose practical recommendations for public sector leaders.

This section aims to provide a clear understanding of the fundamental concepts that underpin the analysis and discussion of our paper. It focuses on three key concepts: transformational leadership, digital transformation and employee engagement. Each concept is defined and its characteristics, implications and interrelationships are explored. In this context, we will also examine the specific case of Tunisia, where these concepts are particularly relevant in the context of its recent economic and social development.

Transformational leadership (TL), as conceptualized by Bass and Riggio (2006), represents a leadership approach that motivates employees to exceed their initial expectations and achieve organizational objectives (Prabowo et al., 2018). This leadership style is characterized by four core dimensions: idealized influence, intellectual stimulation, inspiration and individual consideration (Bass and Riggio, 2006).

1. Idealized influence: Leaders serve as role models for their employees, earning the admiration and respect of their followers, who strive to excel and achieve the goals set by the leader. In addition, the leader adopts ethical and moral behavior in pursuit of these goals (Gomes, 2014). Idealized influence involves leading by example and inspiring others to adopt a shared vision.

2. Intellectual stimulation: This involves encouraging creativity and innovation in employees (Gilmore et al., 2013). According to Khan and Khan (2019), transformational leadership enables employees to improve their problem solving skills and refresh their thinking. Through intellectual stimulation, leaders motivate employees to rethink traditional ideas and apply new methods of problem solving. By encouraging creativity and innovation, leaders challenge employees to think critically and generate new ideas (Yusuf et al., 2023; Cahyono, 2024).

3. Inspiration: It refers to a leader’s ability to motivate employees in the workplace. A leader’s inspiration has the power to energize employees and is recognized as a key component of transformational leadership theory (Al Dari et al., 2018). For Salas-Vallina et al. (2020), leaders in public organizations need to understand what employees need to do their jobs effectively.

4. Individual consideration: Transformational leaders demonstrate individual consideration by showing genuine trust and concern for employees' needs and feelings (Bass and Riggio, 2006). This personal interaction with each employee is essential for them to perform at their best and maximize their potential. Transformational leaders invest time in coaching and developing everyone.

The characteristics of transformational leadership, as described by Yukl et al. (2019), emphasize the responsibility of leaders to drive change and transformation in public organizations, ensuring that their teams achieve the objectives set collectively. By mobilizing all aspects of this model, leaders can initiate and reinforce major transformations, such as the digital transition (Sihite et al., 2020). However, although these traits are essential for fostering employee engagement and achieving successful organizational transformations, their effective implementation is often a limited bycontextual challenge. These barriers include organizational constraints, rigid bureaucratic cultures and lack of resources (Irianto and Basbeth, 2021; Boukamcha, 2023). Furthermore, previous research has shown that public sector leaders are often face institutional barriers that limit their ability to fully adopt these transformational behaviors (Mishra et al., 2023). By incorporating this realist perspective, our study aims to provide a nuanced understanding of the dynamics of transformational leadership in the context of digital transformation and to formulate practical recommendations to help leaders overcome these challenges while adopting an effective transformational leadership style.

Transformational leadership is essential to improve the effectiveness of the Tunisian public sector, by inspiring and motivating employees, aligning them with the organizational vision and encouraging innovation (Tanović and Šašić, 2023; Harb and Sidani, 2019). Characterized by inspirational motivation, intellectual stimulation, individualized consideration and idealized influence, This leadership style, promotes commitment (Alamri, 2023; Bhatti et al., 2021), innovation (Yusuf et al., 2023) and performance (Cahyono, 2024; Moynihan, 2013). Transformational leadership is pivotal in overcoming resistance, fostering a shared vision of the future (Harb and Sidani, 2019; Sihite et al., 2020), and enhancing employee motivation (Alamri, 2023; Jensen and Bro, 2018). It also plays a critical role in advancing digital governance initiatives (Mulyani, 2024; Dema et al., 2023). It contributes significantly to employee engagement and digital transformation (Bentaleb, 2024), while fostering innovation in the public sector (Saadah et al., 2024; Saadah and Agustiyara, 2024).

However, its implementation in Tunisia must take into account the specific challenges and limitations. In Tunisia, transformational leadership comes up against resistance to change rooted in a bureaucratic culture (Harb and Sidani, 2019; Sihite et al., 2020), where innovation can be viewed with skepticism. Moreover, limited resources (Nugroho and Muslim, 2024) require transformational leaders to demonstrate creativity and ingenuity to maximize the impact of their actions, a challenge highlighted in the analysis of the Tunisian public sector. Finally, traditional hierarchical structures and bureaucratic norms (Harb and Sidani, 2019; Sihite et al., 2020) require a nuanced approach to promote autonomy, commitment and innovation, transformational leadership, in order to address cultural and contextual specificities. Thus, transformational leadership in Tunisia must not only inspire and motivate, but also navigate with agility through the specific constraints of the public sector with agility.

It is important to distinguish between three concepts that are often confused in the context of digital technologies: digitization, digitalization and digital transformation. Digitization refers to the process of converting analogue information into digital format, such as the transformation of physical documents into electronic files (Gradillas and Thomas, 2023). Digitalization, on the other hand, refers to the use of digital technologies to improve processes, increase efficiency and enable new business models (Gradillas and Thomas, 2023). Finally, digital transformation involves a fundamental reorganization of processes and strategies to take full advantage of digital technologies. This requires the adoption of a digital mindset and the integration of digital capabilities into all aspects of an organization (Onesi-Ozigagun et al., 2024).

The main aim of digital transformation is to improve the effectiveness and efficiency of public services. This includes the development of e-governance platforms and the integration of mega data analytics to improve decision-making (Mergel et al., 2019). It represents a paradigm shift in the way public organizations operate, aiming to improve efficiency, transparency and employee engagement while responding to contemporary challenges. Digital transformation automates administrative tasks, reduces bureaucracy and improves operational efficiency (Wirtz and Daiser, 2018). It also requires a cultural shift towards greater agility and innovation (Mergel et al., 2019).

Nevertheless, implementing digital transformation presents several challenges, including identifying competent leaders, convincing stakeholders, and assessing the organization’s potential to compete (Dahlström et al., 2017). In addition, digital transformation has an impact on the way employees perform their tasks and their inter-organizational relationships (Meske et al., 2020).

Concrete examples illustrate the impact of digital transformation in the public sector. For example, Estonia has become a world leader in digital services, offering 99% of its services online, including voting and tax filing (Kattel and Mergel, 2019). Singapore has developed a digital identity system and smart sensor platform to improve the efficiency of public services (Joo, 2023). These initiatives demonstrate how clear vision, and effective leadership can facilitate digital transformation and optimize the delivery of public services.

Digital transformation in the Tunisian public sector represents a multidimensional paradigm shift, characterized by the integration of digital technologies to increase public value, streamline operational efficiency, and cultivate innovation (Bouaziz, 2020; Mkrtchyan and Melkumyan, 2023; Nurfadilah and Haliah, 2024). This transition goes beyond simple technological adoption, requiring a holistic reconfiguration of public management practices. The deployment of information and communication technologies (ICTs) is fundamental to this evolution, facilitating the transition from traditional e-government models to more comprehensive digital governance frameworks (Bouaziz, 2020). However, the realization of these benefits still faces persistent constraints and challenges. In Tunisia, obstacles remain despite national initiatives such as “Tunisie Digitale 2020” and “Tunisie Digitale 2025” which aim to reduce the digital divide, ensure the transition to e-government, and promote entrepreneurship and innovation (Nabi, 2019). Gaps in implementation and the need to ensure the inclusion of marginalized groups, such as people with disabilities, are major concerns (Arman, 2023; Ikwuanusi et al., 2024; Nurfadilah and Haliah, 2024). The Digital Transformation Centre in Tunisia is working with the government to digitize administrative processes, as evidenced by the creation of a digital vaccination platform used during the COVID-19 pandemic and the development of digital payment solutions (Youssef, 2024). Although projects such as Gov Tech aim to improve equitable access to user-centered public services through digitization, sustained efforts are needed to overcome existing challenges and fully realize the potential of digital transformation. The implementation of scalable software solutions, such as cloud computing, data analytics, and automation technologies, is an important factor in improving productivity and accountability (Ikwuanusi et al., 2024). Ultimately, despite the progress made, achieving Tunisia’s digital transformation goals will depend on overcoming these barriers and ensuring inclusive and effective implementation (Mkrtchyan and Melkumyan, 2023; Nurfadilah and Haliah, 2024).

According to Bakker et al. (2023), employee engagement is defined as the degree of attachment, exchange, and relationship between stakeholders in the public sector. It is a multidimensional construct that encompasses not only an employee’s emotional attachment to their job and organization, but also their willingness to invest discretionary effort and contribute actively to organizational goals (Swarnalatha and Prasanna, 2012). This perspective is in line with Shaik and Makhecha (2019), who consider employee engagement as a key factor for organizational success, and Alagarsamy et al. (2023), who describe it as the connection that organizational members have with their professional roles. Therefore, increasing employee engagement improves quality of work life and performance, thereby improving public service delivery and efficiency (Rahmadani et al., 2025). Alagarsamy et al. (2023) emphasize that fostering this connection requires cooperation between all stakeholders (leaders, managers, employees), highlighting the need for mutual understanding problem solving and resolving communication breakdowns to improve organizational effectiveness.

Employee engagement is an important key concept that according to Nikolova et al. (2019), can be broken down into three main dimensions. The first dimension, Vigor, refers to employees' enthusiasm for their work and their ability to cope with stress and fatigue while giving their best. The second dimension, absorption, refers to employees' overall investment in their professional activities, and their belief in their ability to manage their commitment effectively. Finally, the third dimension, devotion, represents the intensity with which employees engage in their work, creating a sense of challenge, inspiration and pride. By integrating these three dimensions, we can better understand how employee engagement influences not only individual performance, but also organizational dynamics in the context of digital transformation.

Employee engagement is a critical factor in the performance and effectiveness of public sector organizations. Research has shown that employee engagement has a direct impact on organizational performance and job satisfaction in the public sector (Bussin and Nienaber, 2015). Transformational leadership is effective in stimulating this commitment, unlike transactional leadership (Al-Hawari et al., 2016).

To foster commitment, it is essential to provide positive job characteristics such as autonomy and task variety, as well as adequate resources (Trivellas et al., 2017). Employees who are motivated by public service values tend to be more committed (Kim and Vandenabeele, 2010).

In a post-bureaucratic context, the concept “public interest” highlights the specific nature of the commitment of public sector employees compared to those in the private sector (Kouadio, 2023). This concept emphasizes the importance of public values and the public interest in motivating public servants. Unlike private sector employees, whose motivation is often focused on economic gain and personal satisfaction, the commitment of civil servants is influenced by ethical and social considerations aimed at serving the public good. Analyzing these values provides a better understanding of the dynamics that underpin this commitment and the factors that reinforce it, while highlighting the need for public sector leaders to integrate these values into their management practices in order to foster genuine and lasting commitment within their teams.

From a social exchange perspective, employee engagement represents the reciprocal response to the perceived support and investment from leaders (Sabekti and Setiawan, 2023). When transformational leaders demonstrate concern for employees' well-being and provide opportunities for growth, employees are more likely to feel valued and supported, leading to higher levels of engagement. This engagement, in turn, can manifest as increased commitment to organizational goals, a greater willingness to embrace change, and a stronger motivation to contribute to digital transformation initiatives.

Appropriate human resource practices, inspiring leadership and motivation to serve the public interest are important for improving the performance and effectiveness of public organizations. Together with transformational leadership and digital transformation, these concepts form a theoretical framework for understanding employee engagement in the public sector.

Employee engagement in the Tunisian public sector is a key determinant of organizational performance and employee motivation. Studies show that antecedents such as job autonomy and social support positively influence engagement (Fletcher, 2016; Sabekti and Setiawan, 2023). Moreover, engagement mediates between training, rewards and employee performance (Sabekti and Setiawan, 2023), highlighting its importance in improving service delivery in public organizations. However, organizational culture, which is often characterized by hierarchical and bureaucratic structures (Alnaqbi et al., 2025), can inhibit this engagement. A supportive organizational culture and transformational leadership are essential for successful digital transformation (Walter, 2024). It is therefore imperative to adopt management practices that value public service motivation (Dahmani, 2021), job satisfaction (Arifin, 2024), and career adaptability (Handayani et al., 2023) in order to foster an environment conducive to innovation and continuous improvement (Lidman et al., 2023).

The literature review explored transformational leadership, digital transformation and employee engagement, highlighting their interconnectedness and key role in public sector reform and innovation, particularly in Tunisia. For a more in-depth analysis, the following section mobilizes theoretical frameworks to structure these concepts, explain their dynamics and formulate practical recommendations.

The integration of transformational leadership and social exchange theories provides a relevant analytical framework for examining employee engagement in the context of digital transformation in public administration. Transformational leadership theory, formulated by Bass (1985), postulates that effective leaders can inspire and motivate their teams by articulating a shared vision and cultivating a climate of innovation. This leadership style is particularly important during periods of organizational change, as it helps to reduce resistance and encourage the adoption of new technologies. In parallel, Blau (1964) theory of social exchange highlights the importance of reciprocal relationships between leaders and employees, emphasizing that perceived support plays a crucial role in employee commitment. More recent research, such as that by Molines (2010), shows that transformational leadership acts as an essential social support, reinforcing the positive effects on employee performance during periods of transition. Piccolo and Colquitt (2006) also establish a direct link between transformational leadership and employee commitment behaviors, indicating that the perception of a supportive leader significantly increases their commitment to the organization. Furthermore, Bui et al. (2021) show that transformational leadership moderates the relationship between perceived support and employee engagement, suggesting that leaders who adopt this style reinforce the beneficial effects of support on employee task involvement. By integrating these two theories, our study aims to demonstrate how effective transformational leadership can not only directly influence employee engagement but also create a relational framework conducive to the flourishing of constructive social exchanges. This combined theoretical approach allows us to explore the complex dynamics between leaders, employees, and the process of technological change. It enriches our understanding of the mechanisms underlying the success of digital transformations in the public sector, while providing practical implications for managers seeking to navigate a complex and constantly changing environment.

Transformational leadership plays a key role in employee engagement in public organizations. According to Jones and Harter (2005), employee engagement benefits both the individual and the organization, with leaders inspiring stakeholders to be more motivated and involved. Koppula (2008) and Gözükara and Şimşek (2015) suggest that leaders provide employees with the necessary information and listen to them, which strengthening their commitment. Azim et al. (2019) show that leaders in public organizations improve employee engagement by promoting employee empowerment and proactivity. Furthermore, research by Dvir et al. (2002) shows that transformational leadership increases employee engagement by promoting a greater sense of empowerment, which is essential in the public sector where motivation can be challenged by bureaucratic constraints.

Transformational leadership also enhances work engagement by positively influencing innovative work behavior, sustainable employability, and organizational citizenship behavior (Barket et al., 2024). The positive impact of transformational leadership on innovative work behavior is further supported by findings that highlight the mediating role of motivation to learn and the moderating effects of task complexity and innovation climate.

While research shows that transformational leadership plays a key role in improving employee engagement and job satisfaction (Jones and Harter, 2005; Azim et al., 2019; Joo, 2023), it is essential to contextualize these behaviors. In the real world, leaders may face significant challenges that hinder their ability to inspire and motivate their teams, such as organizational constraints, rigid bureaucratic cultures, and a lack of resources. Therefore, although transformational leaders are expected to provide relevant information and listen to employees’ concerns (Koppula, 2008; Gözükara and Şimşek, 2015), achieving these ideal interactions may be difficult in practice. These considerations lead to the first hypothesis:

Recent research has reinforced these findings, with research by Hetland et al. (2018) demonstrating that transformational leadership positively influences employee work engagement by increasing their motivation and commitment through supportive behaviors. Furthermore, research by Dvir et al. (2002) suggests that transformational leadership increases employee engagement by fostering a greater sense of empowerment, which is essential in the public sector where motivation can be challenged by bureaucratic constraints. The work of Tims et al. (2011) also supports this notion, showing that transformational leaders can effectively promote a proactive work environment that encourages employees to take ownership of their role. In short, transformational leaders motivate employees to achieve their goals, which increases employee satisfaction and engagement (Park et al., 2022).

Implementing digital transformation in public sector organizations requires change at many levels. While global transformations are often necessary to ensure the success of these initiatives, it is also important to recognize that significant improvements can be made in a targeted way, unit by unit or subject by subject. The literature suggests that digital transformation is not limited to the adoption of new technologies, but also involves a thorough review of internal processes and a change in organizational culture. Mustafa et al. (2022) argue that digital transformation requires strategic alignment between technology, human resources and business processes to ensure the smooth integration of technological innovations. Brunetti et al. (2020) point out the changes in one specific area, such as the use of digital technologies, can have a significant impact on other aspects of the organization, requiring a systemic approach to ensure the coherence and effectiveness of changes.

Sow and Aborbie (2018) also argue that this transformation requires employees to be aware of the impact of these changes on their respective roles. This means that leaders must not only initiate global changes, but also facilitate specific adjustments that meet the unique needs of each unit or group within the organization. Hemerling et al. (2018) point out that transformational leaders perceive digital transformation as a strategic imperative, thus fostering a culture conducive to technological adoption. It is in this context that we formulate our second hypothesis:

This hypothesis is based on the idea that transformational leaders, by inspiring and engaging in their teams, can not only facilitate the adoption of new technologies but also foster a climate of innovation that is essential for success in an ever-changing digital environment.

The mediating effect of employee engagement in the relationship between transformational leadership and digital transformation is a central aspect of organizational dynamics. Employee engagement, defined as an individual’s level of emotional and cognitive commitment to their job and organization, plays a critical role in the success of digital transformation initiatives. Recent literature highlights those transformational leaders, through their inspirational and motivational behaviors, foster a climate conducive to employee engagement. These leaders adopt practices such as recognizing contributions and supporting professional development, thereby strengthening employee engagement, which is essential for the successful implementation of new technologies (Mustafa et al., 2022).

Employee engagement acts as a mediator, facilitating the adoption of digital technologies and stimulating innovation within teams. Studies show that engaged employees are more likely to contribute positively to digital transformation initiatives, showing greater professionalism and a willingness to experiment with new solutions (Winasis et al., 2021). Moreover, engagement strengthens the relationship between management practices and digital transformation outcomes, allowing organizations to benefit from a proactive and creative workforce (Balwant et al., 2020). In addition, engagement fosters open communication and a climate of trust between managers and their teams, which is essential for overcoming resistance to change (Hooi and Chan, 2023). Thus, employee engagement amplifies the impact of transformational leadership on the success of digital transformation initiatives, highlighting the importance of effective leadership in a constantly changing environment. This leads to the third hypothesis:

Thus, we proposed the following hypothesis shown in our conceptual model in Figure 1:

This literature review has deepened our understanding of transformational leadership, digital transformation and employee engagement, highlighting the importance of their interrelationship in the context of public administration. We explained how transformational leadership can drive employee engagement, facilitating the adoption and success of digital transformation initiatives. However, we also found that these dynamics are likely to be influenced by specific contextual factors, such as organizational culture, economic challenges and government policies, particularly in developing contexts such as Tunisia.

In this section, we will present the research methodology employed to address the research questions and hypotheses. Our objective is to offer a clear and comprehensive explanation of the approach used to conduct the empirical study as depicted in Figure 2.

Our research question is fundamentally explanatory and causal, aiming to explain the existence of a relationship between transformational leadership and digital transformation through the mediating role of employee engagement. To this end, we adopt a quantitative approach that objectively presents the relationships between the independent variable (transformational leadership), the dependent variable (digital transformation) and the mediating variable (employee engagement) (Korbi and Boussaidi, 2023).

We use a hypothetico-deductive approach which consists in assessing the relevance of our hypotheses (Thiétart, 2014). The research is conducted in the Tunisian context, focusing on managers and agents of public administrations affiliated with the Ministry of Education.

The study specifically targets the Tunisian public sector, and the Ministry of education, in particular, for a number of strategic and contextual reasons. Although Tunisia is not a member of the OECD, it has undertaken significant reforms in its public sector, particularly in terms of digital transformation. The Tunisian government has implemented initiatives such as the “Tunisie Digitale 2020” project and the “SmartGov, 2020” strategy, which aim to modernize public administration through the adoption of digital technologies (World Bank, 2019). These efforts are particularly visible in the Ministry of Education, which is integrating advanced technologies, including artificial intelligence and online courses, to improve the quality of teaching and educational services (World Bank, 2021). The choice to study the Ministry of Education in Tunisia is relevant because of the homogeneity of the distribution of staff in the Tunisian public sector, which allows for a targeted analysis of organizational dynamics. In fact, about 78.6% of Tunisian civil servants are employed in administrative functions (National Institute of Statistics, 2024). This structure makes it easier to study the impact of transformational leadership on employee engagement without the complications caused by significant differences between different ministries. Although our study focuses on a specific case, it aims to provide insights that can be generalized to other similar contexts in developing or emerging countries seeking to modernize their public sector. The findings may be relevant to other ministries in Tunisia or in other countries with comparable bureaucratic structures, especially those facing similar challenges in digital transformation and employee engagement.

According to Chin (1998), the sample size is determined by the rule that the number of observations must be at least 10 times the number of structural relationships that emerge from the central construction of our structural model. We selected a stratified sample of 420 employees working of the Tunisian Ministry of Education. Stratified sampling ensured that different categories of employees (for example, by hierarchical level, seniority, and department) were represented. This helped us to gain an overview of perceptions within the organization and minimize potential bias.

To collect the data, we distributed a questionnaire online via Google Forms and in person. A total of 420 questionnaires were distributed, and 380 responses were received. After excluding thirty invalid questionnaires, 350 valid responses were used for data analysis.

The questionnaire used in this study was developed based on existing models in the literature on transformational leadership, employee engagement and digital transformation. We identified measurement tools previously used in similar studies (Irianto and Basbeth, 2021; Bakker et al., 2023) and examined their structures and questions. The questions were adapted to the Tunisian cultural and organizational context, taking into account the specificities of the public sector. The questionnaire was administered in Arabic, the official language in Tunisia. This decision was taken to ensure that respondents could express themselves freely and accurately, which is essential for the quality of the data collected. A pre-test was carried out with a small group of public sector employees to identify any problems in understanding or interpreting the questions. The feedback received was used to adjust the questionnaire before it was distributed to a larger sample.

The econometric models are presented below. In this step, we need to identify the latent variables and their relationships, followed by the specification of the econometric model:

1. TL influences EE directly,

2. EE influences DT directly,

3. TL also influences DT both directly and indirectly through EE.

Four regressions are tested. The econometric models are as follows:

1. M1: EE = β1* TL + ε1

Where:

β1 is the path coefficient from TL to EE/ε1 is error term for EE

1. M2: DT = β2 * EE + ε2

Where:

β2 is path coefficient from EE to DT/ε2 is the error term for DT.

1. M3: DT = β3 * TL + ε3

Where:

β3 is the path coefficient from TL to DT/ε3 is the error term for DT.

1. M4:DT = β4 * TL + β1 * EE + ε4 DT = (β6 * TL * β1) + β7 * EE + ε4

Where:

• β4 is the total effect of transformational leadership on digital transformation:

(β6*β1) is indirect effect (mediating effect) of TL on DT through EE/ε4 is the error term.

The items of the variables are adapted from existing literature. For transformational leadership, four dimensions are measured based on the Multifactor Leadership Questionnaire (MLQ 5x-Short) by Bass and Riggio (2006). Employee engagement is measured with fourteen dimensions (Winasis et al., 2021), while digital transformation is measured in five dimensions (Thileepan and Raveendran, 2022). All items are scored on a five-point Likert scale. To analyze the model, we use least-square structural equation modeling (PLS-SEM), which is effective in addressing the complexity of the model and providing robust results (Ringle et al., 2012).The operationalization of the variables is summarized in Tables 1, 2 and 3 (Appendix 1).

Using Structural Equation Modelling (SEM), we will examine the relationships between transformational leadership, employee engagement and digital transformation. This approach will allow us to validate our conceptual model and identify the specific leader behaviors that drive these relationships (Boukamcha, 2023).

The demographic characteristics of respondents include gender distribution (51% male, 49% female), age groups (63% under 45 years), and educational background (50% with high school education). The characteristics of our sample are summarized in Table 4 (Appendix2).

These characteristics are essential for interpreting the findings related to transformational leadership and employee engagement in digital transformation in Tunisian public sector.

On the data for hypothesis testing, we first used factor analysis to refine and assess the consistency of the scales used in the questionnaire. In effect, this process ensures that each scale effectively measures the intended construct and that items are appropriately grouped into distinct factors.

The first step in SMART PLS-SEM is to assess the reliability of the constructs, we need to assess the reliability of the measurement model. This involves examining internal consistency, convergent validity, and discriminant validity (Hair et al., 2016; Hair and Alamer, 2022; Henseler et al., 2009).The average variance extracted (AVE) is used to evaluate the convergent validity (CV). The reliability of the internal consistency and the convergent validity results are summarized in table 5 (Appendix 3).

All indicators and constructs meet the required measurement criteria. Specifically, the external loadings are greater than 0.610, indicating that the reliability of the indicators has been achieved (Chin, 1998; Henseler et al., 2009). In addition, Cronbach’s alpha values are above the acceptable threshold of 0.5 and AVE values are above 0.50, indicating that convergent validity has been achieved (Hair and Alamer, 2022). The Composite reliability (CR) values are 0.799 and 0.862, which are above the minimum required level of 0.70, confirming the internal consistency of our model (Hair and Alamer, 2022).In conclusion, the initial check shows that our model has good convergent validity and internal consistency.

Additionally, the Heterotrait-Monotrait ratio (HTMT) proposed by Henseler et al. (2009), was used to assess discriminant validity between constructs. The HTMT values are presented in Table 6. Discriminant validity was confirmed for all constructs, as all HTMT values were below the 0.9 threshold (Curado et al., 2014).

After making the adjustments, the final model is shown in Figure 3 (Appendix 4).

To test for collinearity, we use the Variance Inflation Factor (VIF). All VIF values were below 3 (Hair and Alamer, 2022), indicating that there is no significant collinearity between the constructs.

To summaries, as shown in Table 7, the results indicate that while transformational leadership and digital transformation show robust indicator validity, the employee engagement indicator Ab2 and the digital transformation indicator DT1 may have collinearity issues that require further review and possible refinement to strengthen the model. The results of Table 7 suggest that in the Tunisian public sector context, certain aspects of employee engagement and digital transformation may be in need of more nuanced measurement or theoretical consideration.

In evaluating the measurement models for this study, constructs were classified as either reflective or formative based on theoretical considerations and empirical evidence. Transformational leadership (TL) and employee engagement (EE) were treated as reflective constructs, where the indicators are seen as manifestations of the underlying latent construct, in line with established theories (Bass and Riggio, 2006; Bakker et al., 2023). Conversely, digital transformation (DT) has been conceptualized as a formative construct, where the indicators collectively define the construct, recognizing that DT is shaped by different dimensions such as technology adoption and process innovation, each of which makes a unique contribution (Gradillas and Thomas, 2023).

The f-square test was used to measure the size of the effects of the independent variables on the dependent variable, in accordance with the criteria established by Cohen (1988). This test is used to determine the practical significance of the significant relationships identified by the SEM model.

These findings, presented in Table 8, highlight the critical role of employee engagement as a mediator between transformational leadership and digital transformation in public administration contexts such as the Tunisian Ministry of Education. As shown in Table 8, leaders should focus on strategies that enhance engagement to maximize their impact on digital transformation outcomes.

We assess the validity of the structural model based on four indicators: hypothesis testing, coefficient of determination (R2), predictive relevance (Q2) and goodness of fit (GOF).

1. Hypotheses testing results

Hypotheses validation depends on the significance of structural relationships, assessed by path coefficients and p-values at 95% confidence level (p < 0.05). Bootstrapping, using Smart PLS 4 (Hair et al., 2017) verifies this. The results of the hypothesis testing are summarized in the following table:

The PLS analysis in Table 9 demonstrates that transformational leadership has a positive and highly significant effect on employee engagement (p-value = 0.000 < 0.05), confirming hypothesis H1. Additionally, Table 9 reveals a significant correlation between transformational leadership and digital transformation (p-value = 0.005 < 0.05), validating hypothesis H2. Furthermore, employee engagement mediates the relationship between transformational leadership and digital transformation (p-value = 0.005 < 0.05), there by supporting hypothesis H3.

1. Verification of Structural Model Quality

At this stage, the quality of the structural model is assessed using the following criteria: the coefficient of determination (R²), the predictive relevance (Q²) and the R-square:

According to our results in Table 10, the coefficient of determination R² is 0.312, indicating that the transformational leadership explains, on average, 31.2% of the variation in employee engagement. Chin (1998) suggests that an R² value above 19% signifies a strong relationship between transformational leadership and employee engagement. Furthermore, the R² value of 0.169 shows that transformational leadership accounts for 16.9% of the variation of digital transformation.

Although Table 10 indicates a modest percentage of explained variance, this result must be contextualized. Firstly, this study takes place in the Tunisian public sector, a complex environment characterized by specific challenges such as low digital low digital adoption and cultural resistance to change (Boukamcha, 2023). Secondly, social science studies on complex phenomena such as leadership and organizational commitment often report relatively low explained variances (Hair et al., 2019). Finally, while Table 10 reveals a modest explained variance, the relationships observed between transformational leadership employee engagement and digital transformation are statistically significant, suggesting that these factors play an important role in digital an important role in the digital transformation of the Tunisian public sector.

In line with Hair and Alamer (2022), Q² values must exceed zero to confirm a model’s predictive relevance. The results presented in Table 10 with Q² values of 0.089 and 0.293, demonstrate robust predictive capacity. Consequently, the findings from Table 10 validate the overall model quality (Wetzels et al., 2009), reflecting the theoretical model proposed in the literature review.

The empirical results of our study, using Structural Equation Modeling (SEM), provide important insights into the relationship between transformational leadership, digital transformation, and employee engagement in public administration. These findings contribute to the existing literature on digital transformation and provide valuable practical implications for the public sector.

Testing our research hypotheses led us to the following findings: First, this research shows that transformational leadership has a positive and significant effect on both digital transformation and employee engagement. This result confirms the findings of Kwarteng et al. (2023), Yao et al., 2023; Van der Voet and Steijn (2021).

In this sense, Ly (2024) argues that transformational leadership has a primordial effect in the implementation of digital transformation in public organizations, as shown in Table 9. It plays an important role in achieving this transformation (H3). Furthermore, transformational leadership plays a very important role in the field of digital transformation, as it helps to provide the relevance of work in organizations in the digital age (Sutrisno et al., 2023).

Effective leadership involves making strategic decisions, leading teams, empowering individuals, and facilitating the adoption of technology. The results showed that leaders in a public administration play an important role in employee engagement. Transformational leadership, with its dimensions of idealized influence and inspirational motivation, positively engages employees in the adoption of digitalization. These results show that employees have trust in their leader, which in turn affects employee engagement in technology adoption (Bader et al., 2023).

Westerman et al. (2014) and Yao et al. (2023) argue that transformational leaders are better equipped to drive digital transformation initiatives by creating innovation and adaptability. Hemerling et al. (2018) suggest that transformational leaders perceive digital transformation as both a necessity and a fundamental strategic paradigm, helping to develop an employee habit that reinforces the use of technology in office work.

The relationship between transformational leadership and employee engagement is well established in literature. Hizamet al (2023) argues that transformational leaders inspire employees to be more motivated and engaged at work. Mandagi et al. (2023) show that transformational leadership enhances employee engagement by improving cognition, skills, empowerment and involvement in the work process. This is particularly important in the context of digital transformation, where employee buy-in and active participation are critical for success.

This is supported by the results presented in Table 9, which confirm the positive and significant effect of transformational leadership on employee engagement (H1), as well as its positive effect on digital transformation (H2).

As demonstrated in Table 9, the findings indicate that employee engagement is a significant mediator between transformational leadership and digital transformation, thereby confirming hypothesis H3. These results align with Ly (2024), highlighting the critical role of engaged employees in facilitating digital transformation. Transformational leadership motivates employees and instills a sense of public service motivation, which is essential for overcoming the challenges associated with digital transformation in the public sector.

The PLS analyses (Table 10) reveal a significant relationship among the variables. The results of our analysis provide strong support for our proposed research model, which is illustrated in Figure 4 (Appendix 5).

Our research indirectly shows a positive effect in terms of employee skills and adaptability (Mensah et al., 2023). This encourages the adoption of agile methodologies, which, coupled with digital transformation, requires significant cultural change in public organizations (Mergel et al., 2021).

Public organizations should invest in developing transformational leadership skills to embed digital transformation. They should also improve employee engagement, which is a key to digital transformation initiatives, and enhance cultural change initiatives to support digital transformation.

The results of the PLS analysis presented in Table 10, reveal a significant positive correlation between transformational leadership practices and employee engagement in the Tunisian public sector. Furthermore, employee engagement plays a mediating role in the relationship between transformational leadership and the successful implementation of digital transformation initiatives. These findings highlight the pivotal role of transformational leadership in promoting employee engagement and digital transformation, especially in a context such as Tunisia, where specific organizational and culture challenges can hinder progress.

To address these challenges identified and leverage the potential of transformational leadership, the following practical strategies are proposed for implementation by public sector leaders. These recommendations are specifically aligned with the four dimensions of transformational leadership: Idealized influence, Intellectual stimulation, Inspirational motivation, and Individualized consideration, offering actionable guidance for the Tunisian context:

1. Idealized influence: In cultivating idealized influence, leaders are encouraged to embody ethical behavior and transparency, acting as role models for their teams (Bass and Riggio, 2006). This is of particular importance in the context of historically low levels of trust in Tunisian public institutions (Boukamcha, 2023; Harb and Sidani, 2019). Drawing on national initiatives, leaders can highlight the effort of the national Anti-Corruption (INLUCC), showcasing a commitment to greater transparency and accountability in public administration, which can help rebuild trust among citizens and employees alike.

2. Intellectual stimulation: To promote Intellectual stimulation, leaders should actively encourage innovation and critical thinking among employees (Gilmore et al., 2013, Khan and Khan, 2019). One effective approach involves the establishment of interdisciplinary teams to conceptualize digital solutions aligning with the user-centered approach of the Gov-Tech project in Tunisia. This approach fosters a collaborative environment where stakeholders can identify challenges and develop innovative solutions that enhance service efficiency (Yusuf et al., 2023; Cahyono, 2024).

3. Inspirational motivation: To inspire such motivation, leaders must articulate a clear and compelling vision for digital transformation, emphasizing the advantages that such change will to both citizens and employees (Al Dari et al., 2018). Inspiration may be drawn from the successful digital initiatives of other countries, such as Estonia’s e-government services, which have significantly improved public service delivery and citizen satisfaction. The presentation of such case studies can effectively communicate the positive impact of digital transformation on Tunisian public administration (Salas-Vallina et al., 2020).

4. Individualized consideration: To demonstrate individualized consideration, leaders should provide personalized support and development opportunities to assist employees in adapting to digital changes (Bass and Riggio, 2006). This can be achieved through the provision of bespoke training programs that equip employees with the necessary skills to utilize new technologies. For instance, leaders can advocate initiatives such as Digital Transformation Center in Tunisia, which priorities capacity building through training sessions on digital tools and methodologies, thereby ensuring that all employees feel supported in the transition to a more digitalized public administration (Yukl et al., 2019).

The findings presented in Tables 7–10 highlight the importance of fostering a supportive and reciprocal relationship between leaders and employees, as theorized by social exchange theory. When leaders exhibit transformational behaviors, employees are more likely to feel valued and supported. This leads to increased engagement and a greater willingness to contribute to digital transformation efforts. These results underscore the necessity for public sector organizations to invest in leadership development programs focused on cultivating transformational leadership skills and institutionalizing a culture of reciprocity.

Given the findings on transformational leadership and its role in digital transformation in public administration, there are several practical implications for public sectors leaders. First, it is essential to invest in leadership development programs that cultivate transformational leadership skills among managers, enabling them to effectively inspire employees. Establishing mentoring initiatives can also facilitate knowledge transfer and support emerging leaders in adopting effective practices. Improving employee engagement through structured feedback systems and recognition programs is essential, as engaged employees are more likely to embrace change and contribute to innovation. In addition, Tunisian public organization need to redefine organizational values by encouraging interdepartmental collaboration, fostering a mindset that is open to change, upgrading IT infrastructure, adopting cloud computing solutions, and ensuring robust cybersecurity measures. Fostering a culture of innovation by encouraging experimentation and using collaborative tools can foster creativity and improve problem-solving skills. Leaders should ensure that digital transformation initiative aligned with organizational goals and allocated sufficient resources to support these efforts. Furthermore, implementing performance metrics will help monitor progress and evaluate the effectiveness of leadership practices. Finally, leveraging digital tolls for communication and data analytics can improve collaboration and provide insight into employee engagement levels. By adopting these strategies, the public sector can effectively navigate the complexities of digital transformation while fostering a motivated and engaged workforce. These results provide valuable information for public decision-makers in Tunisia, highlighting the levels on which to act to improve employee engagement and promote digital transformation.

This study could contribute to the existing literature by exploring the role of transformational leadership theory and social exchange theory. These theories are applied in the context of digital transformation, which reveals the important role of transformational leadership in technology-driven change.

Our study examines the indirect effect of transformational leadership on digital transformation through the mediating role of employee engagement. This helps to unpack the black box of how transformational leadership works to achieve results in public administration. Transformational leadership can influence organizational change and innovation.

This research may contribute to the emerging field of digital leadership by showing how transformational leadership with its four traditional dimensions needs to be adapted in the digital context. This extension of the two theories enhances theoretical understanding and provides a basis for future research to explore the role of transformational leadership in increasing digital transformation through employee engagement.

This paper presents the role of transformational leadership in achieving digital transformation, mediated by employee engagement in public organizations. The results suggest that employee engagement has a significant impact on the relationship between transformational leadership and digital transformation. Furthermore, organizations can leverage transformational leadership to foster employee engagement in a virtual work environment.

The integration of Social Exchange Theory with transformational leadership represents an important advance in our understanding of organizational dynamics. Social Exchange Theory, as demonstrated by Hizam et al. (2023), provides a theoretical basis to explain why employees are more likely to be engaged in their work. According to this theory, employees become committed to the organization thanks to the conditions that the manager can offer, which is particularly relevant in the context of public administration. This theoretical perspective enriches our research by highlighting how effective leadership can not only influence engagement, but also facilitate the transition to digital practices.

The main objective of our research was to examine the impact of transformational leadership on digital transformation through employee engagement. The results show that the dimensions of transformational leadership such as idealized influence, intellectual stimulation, inspiration, and individualized consideration have a positive impact on digitalization in the Tunisian public sector. Indeed, it can be concluded that transformational leadership positively has a positive impact on digital transformation, confirming the findings of Westerman et al. (2014), Yao et al. (2023) and Hemerling et al. (2018).

Although this study was conducted in the context of public organizations in Tunisia, and specifically within the Ministry of Education, its findings and implications are applicable to many governmental organizations. It is important to note that some employees may resist this digital transformation, preferring to remain in the status quo and rejecting the new virtual skills required. This complicates the adoption and development of new technologies.

This study also provides insights into the organizational behavior of leaders in the face of digital transformation, highlighting their essential role in the public administration sector. It contributes to public management research and the achievement of good governance in the public sector in Tunisia.

The practical implications of this study are significant for public sector leaders seeking to drive successful digital transformation initiatives. By focusing on developing transformational leadership skills and fostering a culture of employee engagement, public sector organizations can create an environment where employees are more likely to embrace change, contribute to innovation, and actively participate in the digital transformation process.

Although this study makes significant contributions to our understanding of the relationship between transformational leadership, employee engagement and, digital transformation, it does have certain limitations. In particularly, the variance explained by digital transformation is relatively modest (16.9%) which suggests that other factors not included in the model may also play an important role. First, the results cannot be generalized as they are based on a limited sample of public sector organizations in Tunisia. Future research should consider cross-departmental or cross-country comparisons to better analyze the implementation of digital transformation over time. In addition, qualitative studies could be conducted to gain a deeper understanding of the mechanism by which transformational leadership influences employee engagement and digital transformation. Finally, the exclusive use of quantitative methods limits our ability to further explore the role of transformational leadership in driving this transformation. Therefore, it is important that future studies adopt a mixed approach, combining qualitative and quantitative methods, to gain a deeper understanding of these findings.

The supplementary material for this article can be found online.