The Impact of Digital Transformation on Firm Performance: A LiteratureReview on Mechanisms and Boundary Conditions

Abstract

    This study systematically reviews the impact of Digital Transformation (DT) on firm performance. The analysis reveals a theoretical evolution from a linear positive consensus to a nuanced understanding of the "digitalization paradox" and non-linear relationships. Four key mediating mechanisms are identified: capital empowerment, operational empowerment, innovation empowerment, and governance empowerment. Furthermore, the study confirms that DT outcomes are contingent upon internal factors (e.g., entrepreneurship) and external contexts (e.g., policy uncertainty). Addressing current limitations in measurement and sampling, the paper outlines a future research agenda focused on refined metrics, diverse contexts, and dynamic process perspectives.