The Influence of Phubbing and Fear of Missing Out on Digital Leadership and Employee Performance

A Study of Generation Z in Makassar's Service Sector

Abstract

The rapid advancement of digital technology has significantly reshaped employee behavior, particularly among Generation Z workers who are highly prone to digital distractions. Maladaptive behaviors such as Phubbing and Fear of Missing Out (FOMO) have been shown to negatively affect Employee Performance (EP). However, the mediating role of Digital Leadership (DL) in this dynamic remains underexplored, especially in developing economies and service sector contexts. This study investigates the mediating effect of DL on the relationship between Phubbing, FOMO, and EP, focusing on Generation Z employees in service companies in Makassar, Indonesia.

A quantitative research approach was employed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The measurement model was tested using Confirmatory Factor Analysis (CFA) to ensure validity and reliability, while the structural model assessed path coefficients and mediation effects. Data were collected from 384 Generation Z employees across various service industries.

The results reveal that both Phubbing and FOMO significantly reduce employee performance. However, Digital Leadership plays a pivotal mediating role by mitigating these negative impacts. DL facilitates healthier digital engagement in the workplace, helping sustain productivity despite the prevalence of digital distractions.

This study contributes to the literature by integrating digital behavior management into leadership frameworks and provides practical insights for human resource management in the digital era. To the best of our knowledge, this is the first empirical investigation of this mediation model within the service sector of a developing economy.