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

Abstract

Purpose : The accelerating convergence of digital transformation, sustainability imperatives and stakeholder expectationsis fundamentally reshaping the strategic leadership landscape. Existing research study remains fragmented across digitalleadership, organisational transformation, dynamic capabilities and sustainability domains, limiting a holisticunderstanding of how strategic leaders can simultaneously drive digital transformation and sustainable organisationalgrowth. This study develops an integrative perspective on the leadership capabilities and organisational mechanismsrequired to align digital innovation with long-term sustainability outcomes.Design/methodology/approach : A systematic literature review (SLR) guided by the PRISMA framework was conducted. Acorpus of 124 peer-reviewed journal articles published between 2010 and 2024 was systematically examined across theintersecting domains of strategic leadership, digital transformation, sustainability, organisational capabilities and ESG. Theanalysis 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 fiveinterrelated capabilities: digital strategic vision, organisational agility, innovation orchestration, stakeholder-centricgovernance and sustainability-oriented decision-making. Digital transformation generates sustainable value only whentechnological investments are complemented by human capital development, organisational learning, ethical governanceand 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 leadershipas a critical integrative mechanism linking digital transformation with sustainability outcomes. The proposed SDLSGframework provides actionable implications for senior executives, boards, policymakers and management educatorsseeking to develop digitally resilient, innovation-driven and sustainability-oriented organisations.