AI-ENABLED DIGITAL TRANSFORMATION AND ORGANIZATIONAL SUSTAINABILITY: THE MEDIATING ROLE OF INNOVATION AND MODERATING ROLE OF LEADERSHIP STYLE

Abstract

This study examines the interconnected roles of digital transformation, innovation, and organizational sustainability within contemporary organizational settings. The research aims to assess whether digital transformation enhances sustainability directly and through innovation, drawing on modern theoretical perspectives and recent empirical developments. A quantitative, cross-sectional design was employed, and data were collected from organizations using validated measurement scales. Structural equation modeling with SmartPLS was used to test the proposed hypotheses. The findings reveal that digital transformation significantly strengthens both innovation and organizational sustainability, while innovation also contributes positively to sustainability outcomes. These results highlight the importance of technology-driven practices and innovative capabilities in shaping long-term organizational resilience. The study contributes to the growing discourse on digital modernization and sustainable management by offering empirical support for the theoretical pathways linking technology and sustainability.