Personality trait and employee performance in digital transformation: the mediating effect of employee dynamic capability

The nature of the digital age requires organisations to change their model and adapt to the demands to successfully maintain organisational legitimacy. The pressure on public sector organisations to transform at a higher-than-normal rate cannot be overemphasised; therefore, understanding employees' capabilities is imperative for starting a systemic change. Personality traits are considered to be important determinants for improving individual performance. Employees' personality traits in handling the digital environment determine the extent of digital transformation implementation in the public sector. Thus, the purpose of this research is to conceptualize approaches towards measuring the performance of public sector employees in Malaysia with particular attention to the Employee Dynamic Capability Model. The research method applied in this study was quantitative, and data were collected using an online questionnaire. SmartPLS software was used for the data analysis. The Big Five personality traits (agreeableness, conscientiousness, openness and neuroticism) were found to have a significant relationship, while extraversion was not. This study further extends the current body of knowledge by examining the dynamic capability of the employee as a mediator in the current research and provides directions for subsequent researchers focusing on employee performance in the context of the digital environment.