INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
www.rsisinternational.org
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Emerging Trends and Challenges in Contemporary Management:
Integrating Digital Transformation, Sustainability, and Human
Factors for Organizational Development
Abu Bakar Jaafar, Lokman Abdul Rasol
*
, Mohammad Nasrul Hakim Roslan, Md Hamzaimi Azrol Md.
Baharudin
University Teknologi MARA Pahang, Malaysia
*Corresponding author
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000730
Received: 02 November 2025; Accepted: 10 November 2025; Published: 22 November 2025
ABSTRACT
This review examines contemporary management's evolving landscape, emphasizing the integration of digital
transformation, sustainability, and human factors. Drawing on a mixed-methods approach, including literature
synthesis and case studies, the study highlights major trends such as Industry 4.0 adoption, AI-enabled
organizational models, ESG implementation, and leadership's influence on employee wellbeing. Challenges
such as resistance to change and policy barriers are discussed, emphasizing the need for strategic agility and
adaptive leadership. The review underscores the importance of aligning technological, environmental, and
human-centric initiatives to foster sustainable organizational development. Findings suggest that future
research should explore innovative management paradigms that balance these critical elements, ensuring
competitive advantage and resilience in a rapidly changing global environment.
Keywords: digital transformation, sustainability, human factors, organizational development, management
innovation, Industry 4.0, ESG
INTRODUCTION
Context and Importance of Contemporary Management
Management in the 21st century is characterized by rapid evolution driven by multiple, interrelated forces
reshaping organizational landscapes across industries and sectors. Contemporary management practices are
dynamic, responding to global competition pressures, advances in digital technologies, increasing expectations
for sustainability, and the growing recognition of human capital as a critical organizational asset. Wysocka,
Jungnickel, and Szelągowska-Rudzka (2022) emphasize that internationalization and quality assurance are
pivotal in shaping higher education institutions’ performance within an increasingly globalized world,
illustrating just one domain where management paradigms have shifted significantly. Similarly, Ludwiczak
(2023) highlights the significance of detailed student journey mapping to improve university service quality,
underscoring how management strategies must adapt to enhanced stakeholder engagement and technological
tools.
Global competition continues to be a major driver pushing organizations toward operational excellence and
innovation. As Mihaylova and Papazov (2022) illustrate, the interplay between strategic management
accounting and firm performance in manufacturing SMEs demonstrates the need for adaptive management that
aligns financial and operational goals. Bondarenko’s (2024) examination of quality management within the
fashion industry further reveals how managing business processes systematically is indispensable to achieving
sustainable development and competitiveness amid globalization and intricate international labor division.
Concurrently, technological advancements challenge organizations to transform processes, while sustainability
pressures and the imperative to address social responsibility demand new governance and cultural approaches.
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Izabella Szelągowska-Rudzka et al. (2025) discuss the human factor in modern organizations, engaging the
discourse on whether humans or technological solutions dominate organizational effectiveness, thus
spotlighting the ongoing balancing act between technology and human capital.
Definition of Key Themes
A major emergent theme in contemporary management is digital transformation, which transcends mere
technology adoption. Nguyen Minh, Duong Kien, and Truong Hoang (2021) articulate that Lean
implementation frameworks and digital tools must be comprehensively integrated to improve small and
medium enterprises’ (SMEs) manufacturing processes. Tran Ghi et al. (2022) link human capital and digital
transformation to firm performance in startups, demonstrating the critical role of knowledge and digital
capabilities. Technological breakthroughs, such as artificial intelligence and machine learning, are being
steadily embedded into organizational modeling and audit practices, as explored by Chang (2025) and Pycka
and Zastempowski (2025), enabling superior risk management and strategic agility.
Another defining theme is sustainability in management and organizational development. Bondarenko (2024)
evaluates the role of business process quality management in delivering sustainable development outcomes,
especially in post-conflict contexts like Ukraine. The rising prominence of Environmental, Social, and
Governance (ESG) integration across public and private sectors is well noted by Wacławik, Surówka, and
Popławski (2025), who emphasize that such integration fosters a holistic approach to corporate responsibility
and value creation. The cultivation of corporate social responsibility (CSR) mindsets is further explored by
Mashne and Baracskai (2024), who articulate that senior management mindsets are central to driving
sustainability decisions, signalling a shift from compliance toward proactive social stewardship.
The third pillar involves human factors and their role within contemporary organizations. The complexity of
dynamic workplace environments requires nuanced understanding of leadership, employee motivation, and
well-being. Mihaylova and Papazov (2022) underline the criticality of strategic human resource management
practices that enhance organizational performance. Bieńkowska, Tworek, and colleagues (2025) contribute
empirical models linking leadership styles, including authentic versus fake leadership, with employee job
burnout and turnover intentions, presenting human factors as pivotal for organizational resilience. Angelovska,
Josimovski, and Ivanovska (2022) expand on psychological well-being, detailing how work-life factors
differentially impact executives by gender, reinforcing the need for inclusive management frameworks.
Objectives and Scope of the Study
This study aims to provide a comprehensive exploration of emerging trends that integrate digital
transformation, sustainability imperatives, and human factors, acknowledging their intertwined nature as key
drivers of contemporary organizational development. It seeks to identify both opportunities and challenges
involved in adopting innovative technologies, embedding responsible practices, and managing workforce
dynamics effectively within varied organizational contexts. Drawing on a breadth of multidisciplinary
research, the study will elucidate pathways for organizations to navigate complexities and harness the
synergies across technological, environmental, and human dimensions for sustainable competitive advantage
and organizational growth.
Conceptual Framework: Integrating Digital Transformation, Sustainability, and Human Factors
This conceptual framework delineates the interdependent relationship between digital transformation,
sustainability, and human factors as fundamental pillars of contemporary organizational development. Digital
transformation functions as a strategic catalyst that drives innovation, process efficiency, and data-informed
decision-making. Its success, however, is contingent upon the alignment of technological advancement with
sustainable organizational strategies and human adaptability.
Sustainability functions as the overarching paradigm that anchors digital initiatives within frameworks that are
environmentally responsible, socially inclusive, and economically sustainable. At the same time, human factors
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Page 8966
encompassing leadership style, organizational culture, employee motivation, and overall well-being represent
the adaptive capacity through which organizations effectively assimilate technological advancements and
respond to evolving environmental demands.
Figure 1: Conceptual Framework Integrating Digital Transformation, Sustainability, and Human Factors :
Authors’ synthesis (2025)
The convergence of these three domains underpins the development of adaptive leadership, a capability that
mediates between transformation pressures and sustainability objectives. This conceptual system highlights
three dynamic mechanisms through which integration occurs:
1. Transformation Enablers: Technological innovation, digital infrastructure, and knowledge management
practices that facilitate sustainable performance.
2. Barriers: Organizational inertia, policy rigidity, and skill deficiencies that constrain the integration of
digital and sustainable initiatives.
3. Adaptive Leadership: Human-centered managerial competencies that foster agility, learning, and
alignment between digital innovation and sustainable goals.
Collectively, this framework proposes that digital transformation acts as an enabler, human factors moderate
the change process, and sustainability represents the ultimate outcome of balanced organizational adaptation.
By visualizing these interconnections, the model provides a coherent conceptual foundation for analyzing how
organizations can simultaneously pursue technological advancement, human development, and sustainable
growth in an increasingly complex and volatile environment.
METHODOLOGY
Research Design
This study adopts a mixed-method research design that combines qualitative and quantitative approaches to
comprehensively explore emerging trends in contemporary management. The use of mixed methods facilitates
a holistic analysis of complex phenomena by capturing both the depth of qualitative insights and the
generalizability of quantitative data (Ludwiczak, 2023; Nguyen Minh et al., 2021). Such a design supports the
investigation of interlinked constructs like digital transformation, sustainability, and human factors within
organizations while accommodating the complexity inherent in these domains.
Adaptive
Leadership
Digital
Transformatio
n
Sustainbility
Barriers
Human
Factors
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Data Collection Methods
Data collection integrates several sources and techniques to enrich the study's empirical foundation. A thorough
synthesis of contemporary management literature forms the conceptual basis, drawing on diverse thematic
areas to define constructs and identify knowledge gaps (see matrix authors). Complementing the literature
review, case studies have been incorporated from organizations navigating digital and sustainable transitions.
For instance, Kizielewicz et al. (2023) analyze project management practices in higher education institutions,
offering empirical evidence on innovation in organizational processes. Similarly, Nosková and Jelínková
(2023) investigate opportunities for innovating project management education via novel learning interventions.
In addition to secondary data, primary data is collected through surveys and interviews tailored to capture
perspectives from management and employees actively engaged in digital transformation and sustainability
initiatives. This approach aligns with methodological practices observed in strategic management studies
where data from practitioners enriches theoretical models (Judyta Piórkowska & Ryńca, 2023; Korent &
Orsag, 2022). Moreover, bibliometric analyses and content analysis techniques have been employed to map the
evolution and thematic concentrations within management literature, ensuring comprehensive coverage of
emergent topics related to the study's scope (Ludwiczak, 2021).
Analytical Tools
The study deploys advanced analytical methods to examine interrelationships among key variables and extract
thematic insights. Structural Equation Modeling (SEM) is utilized to test proposed conceptual frameworks
assessing the complex connections between digital transformation, sustainability practices, and human
resource dynamics (Gawrysiak et al., 2024). SEM offers the advantage of simultaneously analyzing multiple
dependent relationships and is widely applied in organizational studies requiring robust validation of causal
models.
Content analysis serves as a qualitative tool to systematically extract themes from textual data, such as
organizational documents, interview transcripts, and policy materials. Approaches to content analysis as
employed by Ludwiczak (2021) and Bondarenko (2024) enable the identification of patterns and insights
pivotal to understanding cultural and processual changes in management contexts. Thematic coding, combined
with narrative synthesis, facilitates the exploration of nuanced phenomena like organizational culture shifts and
innovation adoption.
Additional statistical techniques, including multivariate regression analyses and bibliometric mapping,
complement the core methodologies by quantifying factors influencing organizational outcomes and
highlighting research trends, thereby supporting triangulation and cross-validation (Korent & Orsag, 2022;
Judyta Piórkowska & Ryńca, 2023).
Validation and Reliability
To ensure the rigor and reliability of findings, the study applies triangulation by integrating multiple data
sources, methodologies, and analytical approaches. This cross-method validation enhances the credibility of
results by verifying consistency across qualitative and quantitative findings, a principle underscored in
empirical studies in management research (Ludwiczak, 2021; Bondarenko, 2024).
Reliability is further supported through meticulous data collection protocols, including standardized survey
instruments, clearly defined coding schemes for qualitative data, and pilot testing to refine tools. Case study
triangulation incorporates multiple informants and documents to mitigate bias (Kizielewicz et al., 2023).
Continuous validation efforts ensure robustness in interpreting complex relationships among digital
transformation, sustainability, and human factors within contemporary organizations.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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RESULTS AND DISCUSSION
Digital Transformation Trends
The integration of Industry 4.0 technologies has rapidly transformed organizational processes by automating
production, improving decision-making, and enhancing operational efficiency. Nguyen Minh and Duong Kien
(2021) proposed a four-phase framework to effectively implement Lean principles in SMEs, illustrating how
technological adoption and process optimization contribute to competitive advantage. Marciniak (2024) further
emphasized the role of robotic process automation (RPA) in managing business robot farms, bridging
technological gaps and supporting dynamic growth within industrial sectors.
Artificial intelligence (AI) and machine learning (ML) have had a profound impact on organizational modeling
and IT auditing practices. Chang (2025) traced AI's evolution from classical collective intelligence models to
contemporary neural networks and deep learning, underscoring its relevance in organizational decision
support. Meanwhile, Pycka and Zastempowski (2025) examined AI and ML adoption in IT audits, highlighting
enhanced cybersecurity risk management and technological integration. These advances reinforce the
importance of data-driven approaches for organizational adaptability.
However, digital transformation poses critical challenges, especially for small and medium-sized enterprises
(SMEs) and higher education institutions (HEIs). Hang Thi Nguyen (2025) identified readiness gaps in
Vietnamese SMEs struggling to optimize business processes and leverage digital tools amid rapid
transformation. Schmidt (2025) analyzed mental models of university faculty reluctant to adopt online teaching
technologies, revealing psychological and cultural barriers to digitalization in academic workplaces. These
findings indicate that while digital technologies offer significant opportunities, human-centered change
management remains pivotal.
Sustainability and Environmental Considerations
Environmental, Social, and Governance (ESG) frameworks are increasingly embedded in public and private
sector management. Wacławik et al. (2025) reviewed ESG implementation in public sector organizations,
noting the growing importance of transparency, responsible governance, and social performance to fulfill
accountability expectations. Łemańczyk and Kubala (2025) explored creating shared value (CSV) and ESG
concepts from employees' viewpoints, demonstrating an emerging internal awareness that shapes
organizational strategies towards sustainability.
Corporate Social Responsibility (CSR) transcends reputation management to influence managerial mindsets
fundamentally. Mashne and Baracskai (2024) investigated CSR mindsets among senior managers, revealing
decision-making processes that prioritize long-term social and environmental outcomes. Bortnowska and Seiler
(2022) studied CSR's role in mission statements of Polish chemical companies, emphasizing CSR as a tool to
reduce reputational risk and integrate ethical considerations into strategic planning.
In the context of sustainable value creation, Kabalska (2022) highlighted diverse actors and research contexts
that complicate understanding value paradigms, while Zarębska et al. (2021) assessed Poland’s efforts to
implement circular economy models, noting challenges in adapting best practices and integrating ecological,
economic, and social dimensions within municipal waste management. Together, these studies stress the
multifaceted nature of sustainability integration, requiring systemic approaches beyond isolated initiatives.
Role of Human Factors
Human factors are central to organizational performance and wellbeing. Leadership style notably influences
employee outcomes, with Barmeyer and Grosskopf (2025) describing emerging leadership paradigms capable
of managing volatility and complexity by empowering subordinates and fostering adaptability. Bieńkowska et
al. (2025) examined the relationship between leadership, particularly fake leadership, and employee burnout,
highlighting how destructive managerial behaviors mediate job dissatisfaction and turnover intentions.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Employee ownership and motivation also shape team dynamics and organizational culture. Shipper and Blasi
(2021) defined employee ownership's varieties and its potential to enhance engagement. Lambovska (2022)
developed a fuzzy logic model evaluating motivation for high-quality publications, indicating cognitive and
affective elements driving individual excellence. Warner-Søderholm et al. (2022) emphasized ethnicity’s
nuanced role in management perceptions, underscoring social identity’s impact on team cohesion in
increasingly diverse work environments.
Digital workplaces have introduced novel psychological challenges. Angelovska et al. (2022) studied how
work-life factors, including community and balance, affect executives’ psychological health with notable
gender differences. Hedhili and Ben Romdhane (2025) contributed to understanding Bitcoin’s price dynamics,
indirectly reflecting on the stresses and cognitive loads experienced by actors in fast-evolving digital
economies, highlighting workforce adaptation needs.
Integration and Challenges
The interplay of technological advancement and human-centered management demands careful balance.
Izabella Szelągowska-Rudzka et al. (2025) explored the value of the human factor in the era of rapid
technological change, affirming that despite automation, human judgment and adaptability remain
irreplaceable. Stepanova and Tonkykh (2024) emphasized innovative quality management approaches in
tourism and hospitality during economic recovery, illustrating the need for continuous updating of managerial
practices.
Management process adaptations are necessary for sustainable and digital development. Bondarenko (2024)
advocated systematic quality management of business processes to achieve sustainable fashion industry
development despite globalization pressures. Nguyen Minh et al. (2021) proposed energy benchmarking
management to improve operational efficiency in the Vietnamese beer and beverage sector, illustrating applied
methodologies for sustainability in production.
However, barriers such as resistance to change and policy complications persist. Kowalczyk (2025) analyzed
faculty reluctance towards digital teaching, highlighting mental models that stall technology adoption.
Ludwiczak (2025) identified as obstacles challenges universities face in improving service quality despite
innovations like student journey mapping, indicating systemic impediments to change.
Implications for Organizational Development
Strategic agility and competitive advantage increasingly derive from integrating digital and sustainability
initiatives. Sajdak and Młody (2025) demonstrated how Industry 4.0 technologies enhance strategic sensitivity
and operational flexibility, aiding firms in volatile markets. Mihaylova and Papazov (2022) discussed strategic
management accounting’s role in SMEs to improve reporting and decision-making, reinforcing agility at
managerial levels.
Emerging organizational paradigms require adaptive leadership. Feldman (2025) highlighted executive
succession's role in maintaining leadership continuity critical to organizational resilience amid change.
Barmeyer and Grosskopf (2025) also stressed empowering leadership's capacity to navigate uncertainty while
fostering distributed responsibility.
These studies collectively reveal rich areas for future research, particularly in operationalizing integrated
management models that blend human factors, digital transformation, and sustainability within adaptive,
innovative organizations.
Managerial Implications
The integration of digital transformation, sustainability, and human factors carries significant implications for
managerial practice across diverse sectors. The findings of this review highlight the necessity for managers to
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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adopt a balanced approach that combines technological innovation with human-centered and
sustainabilitydriven strategies.
Service Sector
In service-oriented industries, the implications emphasize the need for human resource digitalization and
service innovation. Managers should invest in digital HR systems that enhance employee engagement,
automate administrative tasks, and support data-driven decision-making in workforce management. The use of
artificial intelligence in customer relationship management and process automation can increase service
personalization and operational efficiency. However, leadership must ensure that digitalization does not
compromise employee well-being or service quality. Therefore, training and continuous learning programs are
critical to build digital literacy and adaptability among employees.
Manufacturing Sector
For manufacturing firms, managerial implications revolve around automation, sustainable production, and
process integration. Managers are encouraged to adopt Industry 4.0 technologies, such as Internet of Things
(IoT) sensors and predictive analytics, to improve production accuracy and resource efficiency. Implementing
green production practices including waste reduction, renewable energy use, and lifecycle assessment which
can strengthen compliance with ESG standards and enhance brand reputation. Furthermore, integrating
sustainability metrics into performance evaluation allows managers to align operational efficiency with
environmental responsibility. A combination of digital and ecological strategies enables manufacturing
organizations to achieve cost competitiveness while maintaining long-term environmental resilience.
Knowledge and Education Industries
In knowledge-based and educational sectors, the managerial focus should shift toward data-driven leadership
and adaptive learning ecosystems. Managers and academic leaders must use analytics and digital dashboards to
inform strategic decisions regarding curriculum innovation, learner performance, and institutional quality. The
experience of digital transformation in higher education, as discussed by Ludwiczak (2023) and Schmidt
(2025), illustrates the importance of fostering digital readiness among educators. Promoting e-learning
adaptation and faculty digital competence will not only enhance teaching outcomes but also ensure
organizational sustainability in the face of technological disruption.
Cross-Sectoral Recommendations
Across all sectors, managers must recognize that technological innovation alone does not guarantee success.
Effective transformation depends on adaptive leadership leaders who encourage collaboration, nurture
innovation, and sustain organizational learning. Policies that integrate digital tools, sustainability goals, and
employee well-being should be prioritized. Managers are advised to cultivate inclusive cultures that reward
experimentation and resilience, enabling organizations to thrive under continuous technological and
environmental change.
CONCLUSION
The review highlights the significant integration of digital transformation, sustainability, and human factors in
contemporary management, underscoring their collective impact on organizational development. While
organizations have made notable strides in adopting Industry 4.0 technologies, ESG practices, and sustainable
models, challenges such as resistance to change, policy barriers, and workforce adaptation remain prevalent.
The findings emphasize the critical role of strategic agility and adaptive leadership in navigating these
complexities. Future research should focus on developing innovative management paradigms that seamlessly
integrate technological advances with human-centric and sustainable principles, ensuring resilient and
competitive organizations in a rapidly evolving global landscape.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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