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A quantitative causal-comparative study delves into hybrid leadership within the burgeoning digital economy. The comparative exploration of transformational and transactional leadership theories aims to unravel the efficacy of hybrid leadership behaviors in steering organizational performance, employee engagement, and innovation. The study conducted a survey using an online survey distribution company, Pollfish.com. Employing the Multifactor Leadership Questionnaire 5X-Short form (MLQ) survey instrument, data were collected from participants in various Information Technology (IT) organizations across the United States. The analysis exposed significant correlations between hybrid leadership behaviors and positive organizational outcomes, highlighting the pivotal role of adaptability and flexibility in leadership styles amid the digital era. This study contributed to the discourse on leadership theories, addressing the evolving demands of the digital landscape and offering practical insights for leadership development programs. As organizations navigate technological advancements, the implications of this research are critical for shaping effective leadership practices that foster innovation and engagement.