Digital leadership as a strategic moderator between IT determinants and sustainable innovation performance: evidence from an emerging economy

Abstract

Grounded in the Resource-Based View and Transformational Leadership Theory, this study examines how institutional technological capacity drives Sustainable Innovation Performance (SIP) in resource-constrained higher education institutions (HEIs) in developing economies. It investigates a cohesive set of IT determinants—digitalization vision, flexibility, integration, and agility—and tests the moderating role of Digital Leadership in enhancing their impact on SIP. Data from 300 HEI employees were analyzed using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). Results indicate that Digital Leadership significantly strengthens the positive relationship between IT determinants and SIP. These findings underscore the strategic importance of proactive leadership in ensuring IT investments translate into sustained innovative outcomes. The study provides practical guidance for university leaders and policymakers, highlighting the necessity of developing Digital Leadership to maximize IT potential and foster resilient innovation. By positioning Digital Leadership as a key strategic moderator within a unified empirical model, this research contributes to the literature on managing innovation and digital transformation, particularly in emerging contexts.