Synergetic role of digital leadership and artificial intelligence (AI) in HRM for sustainable performance: A dual-method approach using SEM and NCA

This study aims to investigate the role of digital leadership in influencing artificial intelligence in human resource management (AIHRM) and sustainable performance, with a particular focus on the mediating roles of managerial and technological innovation in Bangladesh. To achieve the research goal, data were collected from 281 human resource-oriented employees using judgmental sampling. Structural equation modeling (SEM) was used to validate the path analysis, while necessary condition analysis (NCA) was employed to determine the minimum essential conditions for achieving sustainable performance, thereby complementing SEM’s limitations. The results indicate that digital leadership has a significant positive impact on AIHRM, managerial innovation, and sustainable performance, while AIHRM plays a significant positive role in enhancing sustainability. Additionally, managerial innovation partially mediates between digital leadership and performance, and AIHRM and performance, whereas technological innovation shows an insignificant mediating effect between both digital leadership and performance, as well as AIHRM and performance. Notably, to maintain a minimum of 50% sustainable performance, organizations require 13.3% in digital leadership capabilities, whereas achieving 100% sustainable performance necessitates approximately 80% in digital leadership, 73.3% in AIHRM, 71.6% in managerial innovation, and 62.7% in technological innovation capabilities. This study contributes by integrating human and dynamic resources to explain how digital leadership practices and the synergistic effect of AIHRM foster managerial and technological innovation, leading to sustainable outcomes in emerging economies.