Digital Transformation and Organizational Performance: Exploring Strategic Opportunities and Challenges in the Digital Era
DOI:
https://doi.org/10.54518/eir.2.1.2024.1245Keywords:
Corporate Sustainability, Sustainable Business Practices, ESG, Stakeholder Value, Sustainable Competitive Advantage, Organizational PerformanceAbstract
Digital transformation has become a strategic priority for organizations seeking to improve competitiveness, innovation, and organizational performance in an increasingly technology-driven business environment. This study examines the relationship between digital transformation, organizational change, digital innovation, and organizational performance through a qualitative Systematic Literature Review (SLR) guided by the PRISMA 2020 framework. The findings indicate that digital transformation extends beyond technology adoption and involves comprehensive changes in organizational structures, processes, capabilities, and strategic practices. Digital transformation enhances organizational performance by improving operational efficiency, supporting innovation, strengthening digital capabilities, and creating competitive advantages. The review further reveals that successful transformation depends on organizational readiness, capability development, and strategic alignment between technology and business objectives. The study concludes that digital transformation is a critical strategic capability that enables organizations to adapt to technological change and achieve sustainable performance in the digital era.
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