Digital transformation and performance: Literature review, synthesis, and research model

Abstract

In an increasingly interconnected world, the emergence of digital businesses is disrupting traditional business models. Leaders are left with no choice but to embrace digital transformation. In this rapidly changing world, organizations must respond and adapt, as failing to do so could result in their activity decreasing or even disappearing, while more agile players capitalize on the market and attract younger generations.

Digital transformation is seen as a significant driver of performance. It influences how companies operate and inspires them through paradigm shifts driven by current events and new technologies. It impacts internal relationships and interactions within the organization, as well as its external relationships. Moreover, the information processing and analysis capabilities offered by digital transformation have opened up immense opportunities across various areas, allowing companies to reduce costs, establish new customer dialogues, and enhance organizational efficiency.

The opportunities presented by digital transformation, the resources and skills it demands, and the challenges and concerns associated with undertaking such a project have prompted company leaders and researchers to view digital transformation as a focal point of interest. Within this context, this study aims to explore the effects of digital transformation on company performance and the expected objectives of a digital transformation project within a theoretical framework.

This research work seeks to synthesize existing knowledge on digital transformation in companies and derive a comprehensive theoretical framework through a literature review. This framework aims to provide a conceptual understanding of the factors that drive digital transformation, the organizational changes required in the digital era, and the anticipated outcomes of digital transformation projects. Furthermore, the proposed framework emphasizes the need for ongoing monitoring of digital transformation initiatives and making necessary adjustments to achieve the ultimate and primary goal of improving company performance to ensure long-term sustainability.

Keywords: Digital transformation, performance, technology, companies

JEL Classification: L25, M10, M20

Paper type: Theoretical Research