Impact of Digital Transformation and AI through Fostering Digital Leadership Excellence: A Focus on Sustainable Organizational Performance

Abstract

Purpose: The aim of this paper is to examine how artificial intelligence and digital transformation affect sustainable organisational performance with a particular emphasis on mediating role of digital leadership. Design/Methodology/Approach: The survey data from 245 employees employed in different industries and enterprises is considered. The data is collected through structured questionnaire and analysed with PLS-SEM. The study investigates the interrelationship between digital transformation, AI and sustainable organizational performance with mediating role that digital leadership. Findings: The conclusions of the study bring about the need for digital leadership in integrating sustainability and artificial intelligence. From this, it could be distinguished that combining digital leadership with AI is going to increase the performance and productivity of an organization. The integration of AI and digital leadership increased the capacity to innovate which in turn made an affirmative effect on sustainable organizational performance. Implications/Originality/Value: This study provides new perspectives towards the importance of AI and creative digital behaviors for the achievement of long-term sustainable organizational performance. It also follows that digital leadership can be viewed as a way to promote an innovative and sustainable culture, hence highlighting the mediation role of digital leadership.