Leadership for sustainable innovation: understanding the role of visionary leadership in digital transformation

Abstract

This study investigates the role of visionary leadership in fostering sustainable innovation amid digital transformation, focusing specifically on the city of Jeddah, Saudi Arabia. As the Kingdom undergoes a profound socio-economic shift under Vision 2030, leadership has emerged as a critical driver in aligning organizational practices with national sustainability and digitalization goals. Employing an exploratory sequential mixed-methods design, the research first conducted qualitative interviews with public and private sector leaders, identifying four major themes: Vision as a Strategic Compass, Culture of Empowerment and Experimentation, Digital Transformation as a Sustainability Enabler, and Barriers Rooted in Institutional and Cultural Structures. A subsequent quantitative phase, involving 175 survey participants, validated these findings through descriptive and inferential statistics, including regression and exploratory path analysis. Results indicated that visionary leadership was significantly and positively associated with sustainable innovation outcomes, both directly and indirectly through empowerment culture and digital technology integration. Conversely, institutional and cultural barriers were shown to inhibit innovation potential. The study proposes a region-specific conceptual model capturing the complex interrelations between leadership, sustainability, and digital capability, moderated by institutional context. This research contributes theoretically by contextualizing global leadership frameworks within the Arab Gulf and practically by offering actionable insights for leaders, policymakers, and digital transformation strategists. It highlights the need for adaptive leadership strategies that are both technologically progressive and culturally sensitive in driving sustainable futures.