Abstract:

The accelerating wave of digital transformation (DT) has fundamentally reshaped how organizations create value, compete and sustain performance in the modern economy. Emerging digital technologies such as artificial intelligence, big data analytics, cloud computing and the Internet of Things are not merely operational tools; they are strategic enablers that redefine business models and organizational trajectories. This review synthesizes a broad spectrum of empirical evidence to examine how DT influences business model innovation and organizational performance across industries and contexts. Findings from recent studies reveal that DT fosters new value creation logics, enhances operational efficiency, and stimulates organizational agility, yet its benefits are unevenly distributed and often contingent on leadership capabilities, digital culture, and strategic alignment. The review highlights that while many firms achieve measurable gains in productivity and innovation through DT initiatives, others struggle with legacy systems, resistance to change, and capability gaps that hinder transformation outcomes. Beyond summarizing existing evidence, this paper identifies emerging trends such as data-driven ecosystems, sustainability-oriented digitalization, and human–machine collaboration as critical frontiers for future research. By bridging insights from management, information systems, and innovation literature, this review offers a comprehensive understanding of DT’s transformative power and provides strategic directions for organizations striving to thrive in an increasingly digital and competitive landscape.