Digital Leadership and Sustainable Development: Enhancing Firm Sustainability Through Green Innovation and Top Management Innovativeness

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, particularly 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 positively 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 contribute 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).