Abstract
Introduction Today, sustainable leadership is a strategic leadership approach that addresses environmental, social, and economic priorities from a holistic perspective while at the same time driving digital transformation processes. The research aims to explain how sustainable leaders mobilize organizational resources, technological infrastructure, and human creativity within the framework of Dynamic Capabilities Theory. Methods The research was conducted on 456 white-collar employees working in small and medium-sized enterprises operating in Giresun, Kars, and Kırşehir provinces. The data collected by the convenience sampling method were analyzed using the PLS-SEM method with the SmartPLS 4.1.1 program. Results The analysis results show that sustainable leadership has significant and positive effects on perceptions of artificial intelligence, the generation of creative ideas, digital transformation, and awareness of the circular economy. It was found that the perception of artificial intelligence (AI) has a significant effect on both digital transformation and awareness of the circular economy. It was also determined that creative idea generation has significant effects on digital transformation and awareness of the circular economy. The results of the mediation analyses revealed a partial mediating role for all variables. Discussion The findings reveal that sustainable leadership is not limited to the environmental and social responsibility dimension and is a strategic element that directs digital transformation processes, shapes perceptions towards artificial intelligence, and encourages organizational creativity.