Purpose This study aims to explore the interplay between digital transformation, artificial intelligence (AI) in well-being, happiness-based leadership, Happiness Management and organizational sustainability. Grounded in transformational leadership theory of bass, it examines how digital tools and emotionally intelligent leadership foster sustainable, happiness-driven workplaces – particularly in the Ibero-American and Spanish context. To strengthen conceptual coherence, the study also clarifies the transition from theoretical foundations to the development of the empirical model. Design/methodology/approach A quantitative, cross-sectional survey was conducted with 3,728 employees across various sectors in Spain. Data were collected through a 17-item questionnaire using validated Likert-scale constructs. Partial least squares structural equation modeling via SmartPLS 4 was used to test reliability, validity and model fit. Findings All five hypotheses were supported. Digital transformation positively impacts happiness-based leadership, which, in turn, mediates its effect on Happiness Management. AI in well-being significantly predicts both Happiness Management and sustainability. Moreover, Happiness Management is a strong predictor of organizational sustainability. Originality/value This research offers an integrative model linking technology, leadership and employee happiness as drivers of sustainability. It redefines Happiness Management as a measurable strategic capability and positions happiness-based leadership as a vital bridge between AI-driven processes and human-centered workplaces. The study provides practical guidance for organizations aiming to align environmental, social and governance goals with digital innovation and emotional well-being – especially relevant in Ibero-American settings where human-centered and ethical management models are increasingly essential.
Cuesta-Valiño et al. (2026) studied this question.