IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i18p8023-d1477638.html
   My bibliography  Save this article

Nexus among Digital Leadership, Digital Transformation, and Digital Innovation for Sustainable Financial Performance: Revealing the Influence of Environmental Dynamism

Author

Listed:
  • Md. Alamgir Mollah

    (Department of Management Studies, University of Barisal, Barishal 8254, Bangladesh)

  • Mohammad Bin Amin

    (Doctoral School of Management and Business, Faculty of Economics and Business, University of Debrecen, Böszörményi út 138, 4032 Debrecen, Hungary)

  • Gouranga Chandra Debnath

    (School of Business & Economics, United International University, United City, Madani Avenue, Badda, Dhaka 1212, Bangladesh)

  • Md. Sajjad Hosain

    (Department of Business Administration, University of Science and Technology Chittagong, Zakir Hossain Road, Chattogram 4202, Bangladesh)

  • Md. Atikur Rahaman

    (School of Economics and Management, Jiujiang University, 551 Qianjin Donglu, Jiujiang 332005, China)

  • Masuk Abdullah

    (Faculty of Engineering, University of Debrecen, Ótemető utca 2-4, 4028 Debrecen, Hungary)

Abstract

In the era of digitalization, the role of IT firms and the capabilities of digital leadership for driving digital transformation and managing environmental dynamism for the proliferation of digital innovation and organizational performance for sustainability are still scant, producing a knowledge gap. To fill this gap, this study aims to investigate the role of digital leadership in enhancing organizational performance, with the mediating impact of digital transformation and digital innovation, and the moderating role of environmental dynamism in the relationship between digital transformation and innovation. To investigate the conceptual model, we used survey data of 416 responses from small, medium, and large IT organizations in Bangladesh and deployed the AMOS 24 package software for the analysis of structural equation modeling (SEM). The results showed that digital leadership has a significant impact on digital transformation, digital innovation, and organizational performance. Digital innovation partially mediates the relationship between digital leadership and organizational performance. Although environmental dynamism has no significant effect in relation to digital leadership and innovation, it has an indirect influence on the structural model. The results from before and after moderation proved that environmental dynamism might not have a significant moderating effect on relationships, but it has significant power to change other interrelationships and hamper organizational sustainability.

Suggested Citation

  • Md. Alamgir Mollah & Mohammad Bin Amin & Gouranga Chandra Debnath & Md. Sajjad Hosain & Md. Atikur Rahaman & Masuk Abdullah, 2024. "Nexus among Digital Leadership, Digital Transformation, and Digital Innovation for Sustainable Financial Performance: Revealing the Influence of Environmental Dynamism," Sustainability, MDPI, vol. 16(18), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:18:p:8023-:d:1477638
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/18/8023/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/18/8023/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ningrui Wen & Muhammad Usman & Ahsan Akbar, 2023. "The Nexus between Managerial Overconfidence, Corporate Innovation, and Institutional Effectiveness," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    2. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    3. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    4. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    5. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    6. Broekhuizen, T.L.J. & Emrich, O. & Gijsenberg, M.J. & Broekhuis, M. & Donkers, B. & Sloot, L.M., 2021. "Digital platform openness: Drivers, dimensions and outcomes," Journal of Business Research, Elsevier, vol. 122(C), pages 902-914.
    7. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    8. Berné-Martínez, J.M. & Ortigosa-Blanch, Arturo & Planells-Artigot, Enrique, 2021. "A semantic analysis of crowdfunding in the digital press," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    9. Sabrina Zeike & Katherine Bradbury & Lara Lindert & Holger Pfaff, 2019. "Digital Leadership Skills and Associations with Psychological Well-Being," IJERPH, MDPI, vol. 16(14), pages 1-12, July.
    10. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    11. Peiyan Zhou & Shuya Zhou & Ming Zhang & Shujuan Miao, 2022. "Executive Overconfidence, Digital Transformation and Environmental Innovation: The Role of Moderated Mediator," IJERPH, MDPI, vol. 19(10), pages 1-28, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    2. Lerch, Christian M. & Horvat, Djerdj & Jasny, Johannes, 2024. "When manufacturers turn into digital platform providers: A transformation model to understand the platformization pathway," International Journal of Production Economics, Elsevier, vol. 273(C).
    3. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    4. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    5. Do, Hoa & Budhwar, Pawan & Shipton, Helen & Nguyen, Hai-Dang & Nguyen, Bach, 2022. "Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism," Journal of Business Research, Elsevier, vol. 141(C), pages 808-821.
    6. Lysander Weiss & Dominik Kanbach, 2022. "Toward an integrated framework of corporate venturing for organizational ambidexterity as a dynamic capability," Management Review Quarterly, Springer, vol. 72(4), pages 1129-1170, December.
    7. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    8. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.
    9. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    10. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    11. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    12. Jean, Ruey Jer “Bryan” & Kim, Daekwan & Bello, Daniel C., 2017. "Relationship-based product innovations: Evidence from the global supply chain," Journal of Business Research, Elsevier, vol. 80(C), pages 127-140.
    13. Patnaik, Swetketu & Munjal, Surender & Varma, Arup & Sinha, Sujay, 2022. "Extending the resource-based view through the lens of the institution-based view: A longitudinal case study of an Indian higher educational institution," Journal of Business Research, Elsevier, vol. 147(C), pages 124-141.
    14. Jeremy Galbreath & Chia‐Yang Chang & Daniel Tisch, 2023. "The impact of a proactive environmental strategy on environmentally sustainable practices in service firms: The moderating effect of information use value," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5420-5434, December.
    15. Verreynne, Martie-Louise & Hine, Damian & Coote, Len & Parker, Rachel, 2016. "Building a scale for dynamic learning capabilities: The role of resources, learning, competitive intent and routine patterning," Journal of Business Research, Elsevier, vol. 69(10), pages 4287-4303.
    16. Mahavarpour, Nasrin & Marvi, Reza & Foroudi, Pantea, 2023. "A Brief History of Service Innovation: The evolution of past, present, and future of service innovation," Journal of Business Research, Elsevier, vol. 160(C).
    17. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    18. Venugopal Ramachandran, 2011. "Strategic corporate social responsibility: a ‘dynamic capabilities’ perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(5), pages 285-293, September.
    19. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    20. Abel D Alonso & Seng Kok, 2018. "A resource-based view and dynamic capabilities approach in the context of a region’s international attractiveness: The recent case of Western Australia," Local Economy, London South Bank University, vol. 33(3), pages 307-328, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:18:p:8023-:d:1477638. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.