Strategic Digital Leadership for Sustainable Transformation: The Roles of Organizational Agility, Digitalization, and Culture in Driving Superior Performance

Abstract

This study examines how digital transformational leadership (DTL) drives superior and enduring organizational performance through the mediating roles of organizational agility (OA) and digital transformation (DT) while assessing the contingent moderating role of digital culture (DC). Anchored in the Resource-Based View (RBV), the study conceptualizes DTL as a strategic intangible capability that enables the orchestration of digital and agile resources into sustained performance outcomes in digitally turbulent environments. Data were collected from 284 senior and middle managers across 13 Palestinian commercial banks—a highly regulated sector undergoing intensive digital pressure in an emerging-economy context—using an online survey. The proposed relationships were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results reveal that DTL significantly enhances both OA and DT, which in turn contribute positively to organizational performance. OA and DT operate as both independent and sequential mediators, uncovering a multistage capability-building pathway through which leadership fosters long-term adaptability and resilience. The findings further indicate that digital culture conditions the effectiveness of leadership-driven transformation, shaping how digital initiatives consolidate into enduring organizational routines rather than short-term efficiency gains. By reframing sustainable transformation as the continuity of organizational performance through agility, digital renewal, and cultural alignment—rather than as an ESG outcome alone—this study refines RBV boundary conditions in digital contexts. The study contributes theoretically by clarifying how leadership-enabled capabilities generate sustainable competitive advantage and offers actionable managerial insights for cultivating agility, embedding digital transformation, and strengthening cultural readiness to support long-term organizational resilience.