Advancing Sustainable Competitive Advantage through Green Digital Transformation Leadership, Green Technological Innovation and Green Digital Transformation: An Integrated SEM–NCA Approach

ABSTRACT Environmental sustainability has raised global concerns following the increase in carbon emissions due to industrial and commercial activities. As such, this research aims to examine the association between green digital transformation leadership (GDTL) in Malaysian manufacturing companies and sustainable competitive advantage (SCA), with green digital transformation (GDT) and green technology innovation (GTI) playing mediating roles. The strategic importance of leadership in supporting green and digital development efforts is gaining ground, as reflected in Malaysia's ongoing effort to maintain a technological edge while navigating environmental issues. Survey data were gathered from 141 senior management personnel and analysed using partial least squares structural equation modelling (PLS‐SEM) and necessary condition analysis (NCA). Based on the elicited outcomes, GDTL significantly increased GDT, GTI and subsequently, SCA. The GDT mediated the GDTL–SCA relationship, denoting the pathways for leadership to promote sustainability. As demonstrated by the NCA outcomes, GDT most significantly influenced SCA. Overall, this study has added depth to the current literature by (1) empirically connecting GDTL with GTI; (2) evidencing the importance of GDT to the achievement of SCA in Malaysia; and (3) providing an integrated framework linking the three components of GDTL, digital transformation, GTI and SCA. The current findings can serve as a guideline for future leaders to navigate digital and green transitions in developing nations.