THE INFLUENCE OF DIGITAL LEADERSHIP ON SUSTAINABLEPERFORMANCE: THE MEDIATING ROLES OF DIGITAL ORGANIZATIONAL CULTURE, AND THE MODERATING ROLE OF ORGANIZATIONAL AGILITY

Abstract

The accelerating pace of digital transformation compels organizations to cultivate leadership and cultural capabilities that can generate both economic and environmental value. Grounded in dynamic capabilities theory, this study examines how digital leadership capabilities influence digital organizational culture and how this culture impacts economic and environmental performance, with organizational agility modeled as a moderator. A quantitative, cross-sectional design was employed, utilizing data collected from managerial respondents that were 342  across multiple industries. Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to test hypothesized relationships. Findings indicate that digital leadership exerts a significant positive effect on digital organizational culture, which strongly predicts economic performance but does not significantly influence environmental performance. Organizational agility both enhances digital culture directly and negatively moderates the leadership–culture relationship, suggesting diminishing leadership effects at high agility levels. These results highlight the centrality of culture as a conduit for economic returns and highlight that environmental gains require additional green digitalization practices or sustainability-oriented capabilities. The study offers theoretical and practical implications for aligning leadership, culture, and agility in pursuit of digital transformation outcomes.

Keywords: Digital Leadership, Sustainable Performance, Digital Organizational Culture and Organizational Agility