IMPACT OF DIGITAL LEADERSHIP ON SUSTAINABLE PERFORMANCE: EVIDENCE FROM INFORMATION TECHNOLOGY INDUSTRIES

Abstract

Digital transformation and sustainability represent dual imperatives for modern organizations. The Information Technology (IT) sector is central to this challenge, acting as both a driver of innovation and a contributor to ecological burdens such as energy-intensive data centers, electronic waste, and resource-heavy hardware production. This inconsistency highlights the need for leadership that can integrate technological advancement with sustainability objectives. This study investigates how digital leadership influences sustainable performance, addressing the limited empirical evidence on the mediating effect of green self-efficacy and green innovation processes, as well as the moderating role of top management innovativeness in emerging economies. Data were collected from 363 IT professionals in Khyber Pakhtunkhwa, Pakistan, using a structured survey. Hypotheses were tested through regression analysis and mediation/moderation models in SPSS to ensure robust statistical validation. Findings reveal that digital leadership positively influences sustainable performance. Green self-efficacy and green innovation processes significantly mediate this relationship, while top management innovativeness strengthens the effect of digital leadership on sustainability performance. The research has theoretical value in the sense that it builds on Upper Echelons Theory, Dynamic Capabilities Theory, and the Resource-Based View using a combination of the three elements, which are leadership, innovation, and self-efficacy. In practice, it provides advice to IT managers and policymakers to pursue the digital transformation in ways that respond to the sustainability demands, especially in resource-limited situations. It is contextual evidence of an emerging economy with its own peculiar challenges and opportunities to IT firms. The combination of the latter with innovation and sustainability creates a strategic way to resilience and competitive advantage in the digital era, dubbed digital leadership.