Aug 2026· Management Decision· 0 citations· 92 references
TL;DR
The study underscores the importance of operational strategy alignment and provides guidance on digital transformation capabilities that firms should prioritize based on their goals, which carry valuable implications for practitioners and policymakers seeking a roadmap for effective digital transformation.
Abstract
With the advent of Industry 4.0, digital transformation has been accelerating, driving significant changes in the business environment. Technical challenges and the distinct characteristics of individual firms present obstacles to their successful digital transformation. Moreover, a firm’s operational focus may shape the relationship between digital transformation and firm performance. This study examines the impact of key digital transformation capabilities on firms’ financial performance.
Using regression analysis on survey data from 2,038 South Korean companies, it empirically validates the effect of digital transformation capabilities on firm revenue. The study also investigates whether this effect differs according to the firm’s operational strategy, categorized as productivity-oriented, quality-oriented or diversified.
The findings confirm that managerial and technological capabilities positively influence financial performance. However, their effects vary depending on the direction of operational strategy. This study highlights the challenges faced by SMEs, especially how resource constraints and technological complexity can hinder successful digital transformation. Given these challenges, aligning digital transformation capabilities with operational strategy emerges as essential for maximizing benefits.
The study underscores the importance of operational strategy alignment and provides guidance on digital transformation capabilities that firms should prioritize based on their goals. These insights carry valuable implications for practitioners and policymakers seeking a roadmap for effective digital transformation.
Digital transformation has become an important strategic priority for organizations seeking to improve efficiency, innovation, customer engagement, and long-term competitiveness. The increasing adoption of cloud computing, artificial intelligence, big data analytics, Internet of Things technologies, and digital collaboration platforms has changed the way organizations operate and create value. However, the implementation of digital technologies alone does not necessarily lead to improved organizational performance. Successful transformation also depends on organizational culture, leadership, employee capabilities, business processes, and strategic alignment. This paper examines the relationship between digital transformation and organizational performance through a systematic review of existing academic literature. The review focuses on the major mechanisms through which digital transformation can influence operational efficiency, innovation, decision-making, customer experience, and competitive advantage. The findings indicate that digital transformation can generate substantial performance improvements when technological investments are integrated with organizational and human capabilities.The study also identifies common challenges, including resistance to change, cybersecurity risks, insufficient digital skills, high implementation costs, and difficulties in integrating legacy systems.The paper concludes that organizations should approach digital transformation as an organizational change process rather than simply as a technology adoption exercise.
Zain Abni Khursheed· International journal of sci...· 0 citations
Amid the revolution in information technology, the digital transformation of manufacturing is reshaping traditional production models toward smart systems. While existing research has explored industrial digitalization at a macro level, systematic studies on how micro-level manufacturing firms evolve in performance and innovation during this process remain limited. This article aims to reveal the performance changes of manufacturing enterprises during digital transformation and examine the dynamic interaction between these changes and technological innovation capability. The study constructs a multi-level framework linking “digital transformation–innovation capability–corporate performance” focusing specifically on the mediating role of innovation capability in the transformation-performance relationship and comparing heterogeneous effects across ownership types and geographic regions. Using data from Chinese A-share listed manufacturing companies from 2019 to 2023, the research applies empirical modeling to test the proposed relationships. Findings indicate that digital transformation significantly enhances corporate performance, with innovation capability playing a crucial mediating role. Heterogeneity analysis shows that state-owned enterprises experience stronger performance gains than non-state-owned firms, and companies in central and western China benefit more than those in the eastern region. Based on these results, the study offers practical policy recommendations to support effective digital transformation in manufacturing.
Suyan Gong, Heng Ma· Proceedings of the Internati...· 0 citations
Findings indicate that digital transformation significantly enhances corporate performance, with innovation capability playing a crucial mediating role and practical policy recommendations to support effective digital transformation in manufacturing.
In the context of digital transformation becoming a strategic priority, understanding how it translates into business performance is particularly important for Vietnamese food enterprises, which face strong pressures related to quality, traceability, supply chain coordination, and regulatory compliance. However, prior studies have not reached a clear consensus on whether digital transformation directly improves firm performance or operates through intermediate organizational conditions. This study examines the effects of digital transformation on financial and non-financial performance and investigates the mediating role of organizational readiness for digital transformation. Survey data from 263 Vietnamese food enterprises were analyzed using a two-stage PLS-SEM approach. The results show that digital transformation has positive and statistically significant effects on organizational readiness, financial performance, and non-financial performance. Organizational readiness also positively affects both dimensions of business performance and serves as a complementary mediator in these relationships. These findings suggest that the value generated by digital transformation depends not only on technology investment but also on the organization’s ability to absorb, coordinate, and implement digital change.
Dũng Tiến Nguyễn, Hải Văn Thân, L. T. Nguyen· Journal of Science and Techn...· 0 citations
The study proposes a quantitative research design based on survey data collected from Romanian SMEs operating in different economic sectors and develops a theoretical framework linking digital transformation with firm performance by drawing on the theory of the firm, transaction cost economics, behavioral economics, innovation theory, and industrial organization.
Ciprian-Constantin Pătrăuceanu, Oleg Petelca, Iurie et al.· The Annals of the University...· 0 citations
Digital transformation has come out as a primary force of organizational change and has transformed the way companies are designing and executing sustainable business models (SBMs) to gain competitive advantage. The introduction of digital technologies into business strategies is the opportunity and challenge in the developing economies, in which institutional constraints and resources limitations are common phenomena. This paper considers how digital transformation can support sustainable business models and its implication on competitive advantage in the developing nations. The study is based on a mixed-methods research design and explores the interaction between digital capabilities, business model innovation, and sustainability-oriented strategies to affect the performance of firms. The results suggest that digital transformation is a strong boost to the efficiency of SBMs as it allows firms to become more efficient in their operations, create innovations, and better adapt to the dynamism in the market. Moreover, the digital capabilities enhance the connection between sustainability practices and competitive performance, and they emphasize the strategic significance of sustainability in the new markets. The research also indicates that companies that use advanced digital technologies and platforms are in a better position to attain sustainable competitive advantage due to innovation and optimization of resources. This research is believed to add to a more holistic approach to the literature on digital transformation, sustainability, and strategic management by incorporating insights into how companies in developing economies can use digitalization to improve their sustainability and competitiveness. The research has both theoretical and practical implications to managers and policymakers who need to propel sustainable growth using digital innovation.
Freddies Oscar· Libyan Journal of Applied an...· 0 citations
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