Digital Transformation Leadership and AI Capabilities as Drivers of Sustainable Competitive Advantage

The modern trend among various industrial companies to adopt digital technologies in their operations through digital transformation and reliance on artificial intelligence has become an imperative, especially with the increasing intensity of competition in global markets. To gain a realistic understanding of the role of digital transformation leadership (DTL) and AI capabilities (AIC) in achieving sustainable competitive advantage (SCA) for organizations, this study employs organizational agility (OA) as a mediating variable, based on data collected from 441 employees in Spanish ‘New S-Curve’ industries, which are innovative sectors achieving high growth returns within the framework of the ‘Spain 5.0’ national strategy. The statistical and analytical framework of Structural Equation Modelling (SEM) revealed that DTL has a significant impact on SCA, while the effect of AIC was not significant. Furthermore, OA was found to be an important mediator, reinforcing the indirect effects of both DTL and AIC on achieving SCA for Spanish organizations.