Strategic Leadership in the Age of Digitalization: Transformation and Sustainable Growth

Abstract

Purpose : The accelerating convergence of digital transformation, sustainability imperatives and stakeholder expectations
is fundamentally reshaping the strategic leadership landscape. Existing research study remains fragmented across digital
leadership, organisational transformation, dynamic capabilities and sustainability domains, limiting a holistic
understanding of how strategic leaders can simultaneously drive digital transformation and sustainable organisational
growth. This study develops an integrative perspective on the leadership capabilities and organisational mechanisms
required to align digital innovation with long-term sustainability outcomes.
Design/methodology/approach : A systematic literature review (SLR) guided by the PRISMA framework was conducted. A
corpus of 124 peer-reviewed journal articles published between 2010 and 2024 was systematically examined across the
intersecting domains of strategic leadership, digital transformation, sustainability, organisational capabilities and ESG. The
analysis is theoretically anchored in Dynamic Capabilities Theory, Upper Echelons Theory, Stakeholder Theory,
Organisational Ambidexterity and Servant Leadership.
Findings : Effective strategic leadership in digitally transforming organisations depends on the integration of five
interrelated capabilities: digital strategic vision, organisational agility, innovation orchestration, stakeholder-centric
governance and sustainability-oriented decision-making. Digital transformation generates sustainable value only when
technological investments are complemented by human capital development, organisational learning, ethical governance
and environmental and social accountability. The study proposes the Strategic Digital Leadership for Sustainable Growth
(SDLSG) framework, which explains the co-evolutionary relationship between strategic leadership, digital capabilities,
organisational transformation, ESG integration and sustainable competitive advantage.
Originality/value: The study extends strategic leadership and dynamic capabilities perspectives by positioning leadership
as a critical integrative mechanism linking digital transformation with sustainability outcomes. The proposed SDLSG
framework provides actionable implications for senior executives, boards, policymakers and management educators
seeking to develop digitally resilient, innovation-driven and sustainability-oriented organisations.