The Synergy Between Digital and Green Leadership on Organizational Ambidexterity Toward Sustainability: Empirical Evidence From an Emerging Market

Abstract

Confronted with the challenges of climate change and digital transformation, leadership has emerged as a critical factor enabling firms to remain agile, avoid strategic inertia, and progress toward sustainable objectives. This study aims to: (1) examine how green transformational leadership (GTLE) fosters sustainable performance through the mediating role of organizational ambidexterity (ORAM); and (2) explore how digital leadership interacts with GTLE to enhance the balancing of ORAM's intrinsic values. Therefore, a cross-sectional research design was employed using survey data collected from 233 senior managers of Vietnamese manufacturing firms. Quantitative analyses were conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4.1.1.2. The findings show that (1) GTLE functions as a fundamental driver enabling firms to achieve a balanced state of ORAM; (2) ORAM positively contributes to sustainable performance; (3) ORAM mediates the relationship between GTLE and sustainable performance, translating GTLE's strategic imperatives into tangible outcomes; and finally, digital leadership acts as a catalyst that amplifies the influence of GTLE on ORAM. As a conclusion, this pioneering study integrates GTLE and digital leadership to advance understanding of leadership dynamics amid the dual pressures of climate change and digital transformation. It extends the literature by clarifying how GTLE and digital leadership interact to support organizational development through the balancing of ORAM's intrinsic dimensions. Moreover, it offers novel insights into the mediating role of ORAM in the relationship between GTLE and sustainable performance.