TRANSFORM TO SUSTAIN: THE ROLE OF DIGITAL TRANSFORMATIONAL LEADERSHIP IN SHAPING SUSTAINABLE PERFORMANCE OF ORGANIZATION

Abstract

In an era where sustainability and digitalization are reshaping global industries, leadership emerges as the critical force bridging technological innovation and environmental responsibility. This study explores how Digital Transformational Leadership (DTL) influences Sustainability Performance (SP) through the mediating role of Digital Transformation (DT) within the textile sector of Punjab, Pakistan—an industry facing intense institutional, regulatory, and global market pressures. Drawing on New Institutional Theory (NIT), the research conceptualizes DTL as an institutional translator that guides firms in adapting to coercive, normative, and mimetic forces through digital means. Data were gathered from CEOs and senior management executives who possess strategic insight into organizational transformation processes. Using SPSS for preliminary analyses and AMOS for structural equation modeling, the study validates a framework in which DTL acts as a catalyst for digital adaptation, enabling firms to achieve sustainable outcomes. The findings advance institutional theory by positioning digital transformation as a strategic adaptation mechanism rather than a purely technological shift. This research contributes theoretically by linking leadership-driven digital initiatives to institutional adaptation and sustainability, and practically by emphasizing the need for leadership competencies that integrate digital innovation with environmental and social responsibility in emerging economies.