The Role of Digital Transformation in Enhancing Sustainable Innovation: The Mediating Effect of Digital Organizational Culture in Higher Education Institutions

This study examines the role of Digital Transformation (DT) in enhancing Sustainable Innovation (SI) within higher education institutions in Egypt, emphasizing the mediating effect of Digital Organizational Culture (DOC). Grounded in the Resource-Based View and socio-technical systems theory, the research conceptualizes DT as a multidimensional process involving technological adoption, process redesign, and strategic realignment. DOC is positioned as a strategic intangible resource that shapes how digital capabilities are translated into sustainability-oriented innovation outcomes. A quantitative research approach was employed, with data collected from 400 academic and administrative staff across public and private universities through a structured questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the hypothesized relationships. The results reveal that DT has a significant positive impact on DOC and SI, while DOC itself strongly influences SI. Furthermore, mediation analysis confirms that DOC partially mediates the relationship between DT and SI, indicating that DT’s impact is substantially enhanced when supported by a strong digital culture. These findings underscore the intertwined nature of technology and culture in driving innovation that aligns with environmental, social, and economic sustainability goals. The study contributes to existing literature by integrating DT, DOC, and SI into a single empirical framework and by contextualizing the relationships within a developing country’s higher education sector. Practical recommendations are provided for policymakers, educational leaders, and technology providers to integrate cultural transformation with digital strategies for long-term sustainability impact.