Responsible Leadership, Digital Transformation Capability, and Sustainability Performance in Business and Higher Education Institutions

Abstract

This study examined the influence of responsible leadership and digital transformation capability on sustainability performance in business organizations and higher education institutions. Specifically, it determined the levels of responsible leadership, digital transformation capability, and sustainability performance; tested the significant relationships among these variables; examined the mediating role of digital transformation capability; and identified whether significant differences existed when institutions were grouped according to sector. Using a quantitative, explanatory-correlational, cross-sectional survey design, data were collected from 400 respondents, composed of 200 participants from business organizations and 200 participants from higher education institutions. The data were analyzed using weighted mean, standard deviation, Pearson product–moment correlation, independent samples t-test, and structural equation modeling for mediation analysis. The findings revealed that responsible leadership, digital transformation capability, and sustainability performance were all manifested at a high level.

The results further showed that responsible leadership had a significant positive relationship with digital transformation capability and sustainability performance, while digital transformation capability was also significantly and positively related to sustainability performance. Mediation analysis confirmed that digital transformation capability partially mediated the relationship between responsible leadership and sustainability performance. Comparative analysis revealed no significant sectoral difference in responsible leadership and sustainability performance, but a significant difference was found in digital transformation capability, with business organizations demonstrating relatively stronger digital readiness than higher education institutions. The study concludes that responsible leadership serves as a foundational organizational driver, while digital transformation capability functions as an enabling mechanism that strengthens sustainability performance across both sectors. The findings provide empirical support for an integrated framework linking leadership, digital capability, and sustainable institutional outcomes.