Sustainable Digital Transformation as a Dynamic Strategic Capability: The Influence of Institutional and Technological Uncertainty

Abstract

Purpose: This study examines sustainable digital transformation (SDT) as a dynamic strategic capability for Kenyan organizations operating under institutional pressure and technological uncertainty. It investigates the influence of institutional pressures and technological uncertainty on SDT capability, its relationship with strategic adaptability, and the moderating roles of leadership support and organizational learning culture. Methodology: This study utilized PRISMA-inspired systematic scoping review. Data sources included major academic databases such as Scopus, Web of Science, and Taylor & Francis Online, which were treated as the primary repositories for high-quality peer-reviewed scholarly literature. In addition, Google Scholar was used as a supplementary search engine to identify additional relevant studies, including grey literature such as conference papers, theses, working papers, and institutional reports that may not be indexed in Scopus or Web of Science. The peer reviewed literature considered was from 2014-2026 Findings: Institutional pressures including coercive, mimetic, and normative, significantly drive the development of SDT capabilities by compelling organizations to adopt green digital infrastructure, ESG reporting systems, and compliance technologies. However, technological uncertainty creates strategic paralysis, skill obsolescence, sunk-cost dilemmas, and e-waste challenges, often resulting in the “digitalization paradox.” SDT capability positively enhances strategic adaptability by enabling sensing, seizing, and reconfiguring processes. Additionally, leadership support and organizational learning culture are critical moderators that strengthen the conversion of external pressures into robust capabilities and mitigate uncertainty barriers. Unique Contribution to Theory, Practice and Policy: Based on the study findings, Kenyan organizations should move beyond superficial digital adoption by embedding sustainability into core strategies, supported by visible leadership commitment and strong learning cultures. In addition, policymakers should prioritize integrated green-digital standards, skills development programs, and incentives for capability building to support Kenya’s twin digital and green transitions. Practically, this framework offers practical pathways for achieving genuine sustainability performance and strategic resilience in emerging economies.