This podcast synthesizes findings from a research study on the impact of Digital Leadership Capability (DLC) on the environmental performance of organizations. Drawing on Resource Orchestration Theory (ROT), the study investigates the mediating roles of Digital Technology Alignment (DTA) and Digital Innovation. Based on survey data from 183 Australian healthcare organizations, the research empirically demonstrates that DLC positively influences environmental performance through both direct and indirect pathways.

The core findings indicate that DTA and digital innovation are critical enhancing mechanisms. DTA, the fit between new and existing technologies, and digital innovation, the creation of new digital solutions, both independently and serially mediate the relationship between DLC and environmental performance. This establishes a clear sequence: effective digital leadership fosters technological alignment, which in turn enables digital innovation, ultimately leading to improved environmental outcomes. The study challenges the view that technology alone drives sustainability, highlighting instead that orchestrated leadership, alignment, and innovation are essential for translating digital potential into tangible environmental benefits.

Source: Chavez, Roberto, Mohsin Malik, and Amir Andargoli. "Digital Leadership Capability and Environmental Performance: The Role of Digital Technology Alignment and Digital Innovation." Business Strategy and the Environment (2025). Complementary download avauilable at https://onlinelibrary.wiley.com/share/author/9AUMSW5APBSDSQF9NZDB?target=10.1002/bse.70353