Leading the transition toward sustainability through digital capabilities and digital innovation : the role of employee characteristics

According to the United Nations (UN), digital innovation and sustainability performance are key pathways to achieving the Sustainable Development Goals. However, existing research has often overlooked the roles of digital capability and orientation in driving digital innovation. This study employed Drucker's productivity theory to examine the relationship between entrepreneurial leadership and digital innovation. Two studies were conducted on China's information technology (IT) industry. Study 1 used a three-wave design (N = 299), while Study 2 used a two-wave design (N = 341). Results demonstrate a significant correlation between entrepreneurial leadership, digital innovation, and sustainability performance, highlighting the mediating roles of employee digital capability and digital orientation in the relationship between entrepreneurial leadership and digital innovation. This study contributes to sustainability research by exploring employee-based mediating factors. The findings enhance the understanding of how IT organizations can foster employee dedication and commitment to achieving higher levels of digital innovation and sustainability performance through entrepreneurial leadership, ultimately supporting the broader UN SDGs.