Digital leadership and sustainable development: Enhancing firm sustainability through green innovationand top management innovativeness
Apr 2025
Muhammad Zada, Shagufta Zada, Bablu Kumar Dhar, Chen Ping and Soumodip Sarkar
ABSTRACT
This study examines the crucial role of digital leadership in advancing sustainable development by fostering green innovation
and enhancing firm sustainability. Building on Organizational Learning Theory (OLT) and Dynamic Capabilities Theory (DCT),
this research fills a key gap by examining how digital leadership integrates digitalization with sustainable development, par-
ticularly within the Chinese information technology sector. The study investigates the impact of digital leadership on green
innovation and sustainable performance, moderated by top management innovativeness. To enhance analytical robustness and
minimize bias, a three-phase time-lagged data collection approach was employed to mitigate common method bias and ensure
robust analysis, with responses from 413 employees representing diverse roles. The results indicate that digital leadership pos-
itively influences the green innovation process, which partially mediates the relationship between digital leadership and firm
sustainability. Furthermore, the findings reveal that top management innovativeness amplifies the positive effects of digital
leadership on green innovation, reinforcing the importance of leadership-driven sustainability strategies. These insights contrib-
ute to the expanding discourse on corporate digital sustainability, demonstrating that digital transformation not only enhances
operational efficiency but also serves as a catalyst for long-term sustainable development. The study offers valuable implications
for policymakers, business leaders, and researchers committed to leveraging digital leadership for corporate sustainability and
the achievement of Sustainable Development Goals (SDGs).
