Digital leadership and data analytics capability for sustainable performance in Dak Lak SMEs: The roles of green dynamic capability, green innovation and environmental dynamism

This study examines how digital leadership and data analytics capability relate to sustainable performance among small and medium-sized enterprises (SMEs) in Dak Lak Province, Vietnam. It tests the sequential indirect pathways through green dynamic capability and green innovation and the proposed moderating role of environmental dynamism. Survey responses from 445 SMEs, with one representative per firm, were analysed using partial least squares structural equation modelling (PLS-SEM). Digital leadership and data analytics capability were positively associated with green dynamic capability and sustainable performance. Green dynamic capability was positively associated with green innovation, which was in turn positively associated with sustainable performance. Both sequential indirect pathways were supported. Environmental dynamism did not significantly moderate the green dynamic capability–green innovation relationship (β = 0.079, p = 0.157). The model explained 41.1% of the variance in green dynamic capability, 22.5% in green innovation, and 49.1% in sustainable performance. These findings suggest that SMEs can connect digital leadership and data use with sustainability outcomes by developing green capabilities and innovation. Because the study uses cross-sectional, self-reported data from one province, the results describe associations and should not be interpreted as causal effects.