Digital Leadership and Innovation: A Systematic Literature Review of Theoretical Foundations, Research Emphases, and Methodological Approaches

Authors

  • Gunawan Universitas Pendidikan Indonesia Author
  • Budi Santoso Universitas Pendidikan Indonesia Author
  • Muhammad Ifan Fadillah Universitas Pendidikan Indonesia Author
  • Dadar Supriatna Universitas Kebangsaan Republik Indonesia Author

DOI:

https://doi.org/10.63541/59ajhk72

Keywords:

Digital Leadership, Innovation Performance, Systematic Literature Review, Theory Context Method (TCM), Strategic Transformation

Abstract

Digital leadership is increasingly recognized as a strategic capability essential for guiding organizations through rapid technological transformation. It is particularly associated with enhanced agility, performance, and the integration of emerging technologies across sectors such as SMEs, manufacturing, education, and public administration. Despite growing interest, existing literature remains fragmented and lacks a coherent synthesis that reflects the multidimensional role of digital leadership across varying organizational and contextual settings. Moreover, limited attention has been given to the mechanisms through which digital leadership drives innovation under diverse ecological, geographic, and structural conditions. To address this gap, we conduct a Systematic Literature Review (SLR) following PRISMA 2020 guidelines and the SPAR-4-SLR framework, analyzing 43 peer-reviewed Scopus-indexed articles published between 2015 and 2025. Through thematic synthesis, bibliometric mapping, and theoretical classification, we identify key patterns, conceptual structures, and research trends. The findings highlight the dominance of Dynamic Capability Theory (DCT) and Resource-Based View (RBV), with survey-based SEM methodologies prevailing. Notable gaps include conceptual ambiguity, methodological uniformity, and limited longitudinal and cross-cultural insights. This review offers a future research agenda grounded in the Theory–Context–Method (TCM) framework, advocating for broader theoretical integration and contextual diversity to better understand digital leadership’s role in fostering sustainable innovation.

References

Ahmed, F., Naqshbandi, M. M., Waheed, M., & Ain, N. U. (2024). Digital leadership and innovative work behavior: Impact of LMX, learning orientation and innovation capabilities. Management Decision, 62(11), 3607–3632. https://doi.org/10.1108/MD-04-2023-0654

Al Issa, H.-E., & Omar, M. M. S. (2024). Digital innovation drivers in retail banking: The role of leadership, culture, and technostress inhibitors. International Journal of Organizational Analysis, 32(11), 19–43. https://doi.org/10.1108/IJOA-08-2023-3905

Asbeetah, Z., Alzubi, A., Khadem, A., & Iyiola, K. (2025). Harnessing Digital Transformation for Sustainable Performance: Exploring the Mediating Roles of Green Knowledge Acquisition and Innovation Performance Under Digital Transformational Leadership. Sustainability, 17(5), 2285. https://doi.org/10.3390/su17052285

Benitez, J., Arenas, A., Castillo, A., & Esteves, J. (2022a). Impact of digital leadership capability on innovation performance: The role of platform digitization capability. Information & Management, 59(2), 103590. https://doi.org/10.1016/j.im.2022.103590

Benitez, J., Arenas, A., Castillo, A., & Esteves, J. (2022b). Impact of digital leadership capability on innovation performance: The role of platform digitization capability. Information & Management, 59(2), 103590. https://doi.org/10.1016/j.im.2022.103590

Borah, P. S., Iqbal, S., & Akhtar, S. (2022). Linking social media usage and SME’s sustainable performance: The role of digital leadership and innovation capabilities. Technology in Society, 68, 101900. https://doi.org/10.1016/j.techsoc.2022.101900

Cai, Q., Wu, J., Wu, T., Chang, P.-C., & Mardani, A. (2024). The impact of digital leadership on hidden champions’ competitive advantage: A moderated mediation model of ambidextrous innovation and value co-creation. Journal of Business Research, 182, 114819. https://doi.org/10.1016/j.jbusres.2024.114819

Chen, A., Li, L., & Shahid, W. (2024). Digital transformation as the driving force for sustainable business performance: A moderated mediation model of market-driven business model innovation and digital leadership capabilities. Heliyon, 10(8), e29509. https://doi.org/10.1016/j.heliyon.2024.e29509

Claassen, K., Dos Anjos, D. R., Kettschau, J., & Broding, H. C. (2021). How to evaluate digital leadership: A cross-sectional study. Journal of Occupational Medicine and Toxicology, 16(1), 44. https://doi.org/10.1186/s12995-021-00335-x

Creswell, J. W., & Creswell, J. D. (n.d.). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches.

Desmaryani, S., Kusrini, N., Lestari, W., Septiyarini, D., Harkeni, A., Burhansyah, R., Kilmanun, J. C., Dewi, D. O., Syafutra, M. R., David, J., Darmawan, D., & Andriany, E. (2022). The role of digital leadership, system of information, and service quality on e-learning satisfaction. International Journal of Data and Network Science, 6(4), 1215–1222. https://doi.org/10.5267/j.ijdns.2022.6.012

Eberl, J. K., & Drews, P. (2021). Digital Leadership ‒ Mountain or Molehill? A Literature Review. In F. Ahlemann, R. Schütte, & S. Stieglitz (Eds.), Innovation Through Information Systems (Vol. 48, pp. 223–237). Springer International Publishing. https://doi.org/10.1007/978-3-030-86800-0_17

Fatima, T., & Masood, A. (2024). Impact of digital leadership on open innovation: A moderating serial mediation model. Journal of Knowledge Management, 28(1), 161–180. https://doi.org/10.1108/JKM-11-2022-0872

Gao, P., & Gao, Y. (2024). How Does Digital Leadership Foster Employee Innovative Behavior: A Cognitive–Affective Processing System Perspective. Behavioral Sciences, 14(5), 362. https://doi.org/10.3390/bs14050362

Hair, J. F. (Ed.). (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (Second edition). Sage.

Hussein, H., Albadry, O. M., Mathew, V., Al-Romeedy, B. S., Alsetoohy, O., Abou Kamar, M., & Khairy, H. A. (2024). Digital Leadership and Sustainable Competitive Advantage: Leveraging Green Absorptive Capability and Eco-Innovation in Tourism and Hospitality Businesses. Sustainability, 16(13), 5371. https://doi.org/10.3390/su16135371

Khan, A. Y., Akhtar, M., & Khan, A. Y. (2024). Digitalization for a Sustainable Performance: Dual-Study Analysis of Digital Leadership, Circular Economy, and Technological Innovation. Sustainability, 16(23), 10465. https://doi.org/10.3390/su162310465

Laradi, S., Elfekair, A., & Shneikat, B. (2024). Understanding sustainable outcomes in the digital age: The vital role of digital leadership in leveraging the impact of green innovation. Uncertain Supply Chain Management, 12(4), 2413–2428. https://doi.org/10.5267/j.uscm.2024.5.026

Leguina, A. (2015). A primer on partial least squares structural equation modeling (PLS-SEM). International Journal of Research & Method in Education, 38(2), 220–221. https://doi.org/10.1080/1743727X.2015.1005806

Lin, Q. (2024). Digital leadership: A systematic literature review and future research agenda. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-07-2023-0522

Majumdarr, S., Dasgupta, S. A., Hassan, Y., Behl, A., & Pereira, V. (2024). Linking digital transformational leadership, symmetrical internal communication with innovation capability: A moderated mediation model. Journal of Knowledge Management. https://doi.org/10.1108/JKM-12-2023-1167

Memon, K. R., & Ooi, S. K. (2023). Identifying digital leadership’s role in fostering competitive advantage through responsible innovation: A SEM-Neural Network approach. Technology in Society, 75, 102399. https://doi.org/10.1016/j.techsoc.2023.102399

Mmakau, S., & Sethibe, T. (n.d.). Digital Leadership: Systematic Literature Review.

Moher, D., Liberati, A., Tetzlaff, J., & Altman, D. G. (n.d.). Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement.

Mollah, Md. A., Amin, M. B., Debnath, G. C., Hosain, Md. S., Rahaman, Md. A., & Abdullah, M. (2024). Nexus among Digital Leadership, Digital Transformation, and Digital Innovation for Sustainable Financial Performance: Revealing the Influence of Environmental Dynamism. Sustainability, 16(18), 8023. https://doi.org/10.3390/su16188023

Niu, S., Park, B. I., & Jung, J. S. (2022). The Effects of Digital Leadership and ESG Management on Organizational Innovation and Sustainability. Sustainability, 14(23), 15639. https://doi.org/10.3390/su142315639

Panic, N., Leoncini, E., de Belvis, G., Ricciardi, W., & Boccia, S. (n.d.). Evaluation of the Endorsement of the Preferred Reporting Items for Systematic Reviews and Meta- Analysis (PRISMA) Statement on the Quality of Published Systematic Review and Meta-Analyses.

Paul, J., & Criado, A. R. (2020). The art of writing literature review: What do we know and what do we need to know? International Business Review, 29(4), 101717. https://doi.org/10.1016/j.ibusrev.2020.101717

Paul, J., Lim, W. M., O’Cass, A., Hao, A. W., & Bresciani, S. (2021). Scientific procedures and rationales for systematic literature reviews (SPAR‐4‐SLR). International Journal of Consumer Studies, 45(4). https://doi.org/10.1111/ijcs.12695

Paul, J., Parthasarathy, S., & Gupta, P. (2017). Exporting challenges of SMEs: A review and future research agenda. Journal of World Business, 52(3), 327–342. https://doi.org/10.1016/j.jwb.2017.01.003

Ramadan, M., Bou Zakhem, N., Baydoun, H., Daouk, A., Youssef, S., El Fawal, A., Elia, J., & Ashaal, A. (2023). Toward Digital Transformation and Business Model Innovation: The Nexus between Leadership, Organizational Agility, and Knowledge Transfer. Administrative Sciences, 13(8), 185. https://doi.org/10.3390/admsci13080185

Sağbaş, M., & Erdoğan, F. A. (2022). DIGITAL LEADERSHIP: A SYSTEMATIC CONCEPTUAL LITERATURE REVIEW. Digital Leadership.

Sahibzada, U. F., Aslam, N., Muavia, M., Shujahat, M., & Rafi-ul-Shan, P. M. (2025). Navigating digital waves: Unveiling entrepreneurial leadership toward digital innovation and sustainable performance in the Chinese IT industry. Journal of Enterprise Information Management, 38(2), 474–501. https://doi.org/10.1108/JEIM-01-2024-0023

Sarfraz, M., Ivascu, L., Abdullah, M. I., Ozturk, I., & Tariq, J. (2022). Exploring a Pathway to Sustainable Performance in Manufacturing Firms: The Interplay between Innovation Capabilities, Green Process, Product Innovations and Digital Leadership. Sustainability, 14(10), 5945. https://doi.org/10.3390/su14105945

Shen, Y., Deng, Y., Xiao, Z., Zhang, Z., & Dai, R. (2025). Driving green digital innovation in higher education: The influence of leadership and dynamic capabilities on cultivating a green digital mindset and knowledge sharing for sustainable practices. BMC Psychology, 13(1), 288. https://doi.org/10.1186/s40359-025-02552-z

Siba Borah, P., Iqbal, S., & Akhtar, S. (2024). Social media usage and SME’s green product innovation: The imperative role of environmental collaboration and digital leadership. Technology Analysis & Strategic Management, 1–15. https://doi.org/10.1080/09537325.2024.2399794

Siddaway, A. P., Wood, A. M., & Hedges, L. V. (n.d.). How to Do a Systematic Review: A Best Practice Guide for Conducting and Reporting Narrative Reviews, Meta-Analyses, and Meta-Syntheses.

Sumbal, M. S., Sahibzada, U. F., Ahmed, Q., Russo, F., & Papa, A. (2024). You reap what you sow – abusive leadership impact on organizational digital innovation through knowledge workers’ competence and productivity. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-01-2024-0031

Sun, Z.-Y., Li, J.-M., Li, B., & He, X.-Y. (2024). Digital leadership and deviant innovation: The roles of innovation self-efficacy and employee ambitions. Current Psychology, 43(26), 22226–22237. https://doi.org/10.1007/s12144-024-06030-4

Tian, H., Han, J., Sun, M., & Lv, X. (2025). Keeping pace with the times: Research on the impact of digital leadership on radical green innovation of manufacturing enterprises. European Journal of Innovation Management, 28(3), 900–927. https://doi.org/10.1108/EJIM-11-2022-0647

Wang, T., Lin, X., & Sheng, F. (2022). Digital leadership and exploratory innovation: From the dual perspectives of strategic orientation and organizational culture. Frontiers in Psychology, 13, 902693. https://doi.org/10.3389/fpsyg.2022.902693

Xi, Q., Li, Z., Zhao, J., & Ding, J. (2025). How Can Technology Orientation Promote Green Process Innovation? The Mediating Effect of Digital Capability and the Moderating Role of Innovation-Oriented Leadership. Sustainability, 17(9), 4071. https://doi.org/10.3390/su17094071

Xiufan, Z., & Yunqiao, L. L. (2024). CIO leadership, employee digital ability, and corporate green innovation performance–moderating effect of organizational agility and environmental culture. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-024-05581-7

Zada, M., Zada, S., Dhar, B. K., Ping, C., & Sarkar, S. (2025). Digital Leadership and Sustainable Development: Enhancing Firm Sustainability Through Green Innovation and Top Management Innovativeness. Sustainable Development, sd.3488. https://doi.org/10.1002/sd.3488

Nardo, R., Evanita, S., & Syahrizal, S. (2019). The Effect of Transformational Leadership and Non Physical Work Environment on Innovative Behavior with Work Motivation as a Mediation For Employees of Tour And Travel Companies In West Sumatera. https://doi.org/10.2991/piceeba2-18.2019.99

Downloads

Published

31-05-2025

Most read articles by the same author(s)

Similar Articles

1-10 of 44

You may also start an advanced similarity search for this article.