The Impact of Virtual Performance Management on Organizational Commitment: Mediating Role of Work Engagement and Moderating Role of Virtual Transformational Leadership

Abstract

The current paper explores the effects of Virtual Performance Management (VPM) on Organizational Commitment (OC) with the mediating effect of Work Engagement (WE) and the moderating effect of Virtual Transformational Leadership (VTL). Quantitative research design was applied with the sample size comprising 300 employees who had worked in virtual and hybrid organizations in Pakistan. The analysis that was performed using SPSS and PROCESS Macro showed that VPM significantly positively affects OC (b = 0.67, p < 0.001), meaning that opaque, technology-sustained, performance systems increase employee loyalty. The results also verified that Work Engagement is part of the relationship existing between VPM and OC (indirect b = 0.32, p < 0.001), implying that performance management effectiveness is converted into enhanced organization commitment by the employees who are engaged. Also, Virtual Transformational Leadership plays a significant moderating role between Work Engagement and Organizational Commitment (b = 0.17, p < 0.001), which proves that the engaging behaviors of transformational leaders enhance the positive effect of engagement on commitment. This paper concludes that effective digital performance management and supportive virtual leadership can help to achieve a greater level of engagement and organizational commitment within technology-driven work environments. The study adds to the increasing amount of digital HRM literature, underlining the significance of leadership and engagement in maintaining commitment in virtual organizations.