SYSTEMATIC REVIEW ON THE IMPACTS OF DIGITAL TRANSFORMATION ON CORPORATE INNOVATION PERFORMANCE
DOI:
https://doi.org/10.33003/fjs-2026-1001-4176Keywords:
Digital Transformation, Organizational, Innovation, Performance, ImpactAbstract
The influence of digital change on company innovation performance is meticulously reviewed in this study. An approach of shift in organizations known as "digital transformation," makes use of digital technologies to boost productivity. The study examined 107 journal papers released between 2020 and 2025 using a critical review approach. The study's findings demonstrate that enterprise success in innovation is significantly impacted by digital evolution, both positively and negatively. Increasing output, effectiveness, and competitiveness in the organization are indicators of that achievement improvement. The efficiency of organizations is not usually directly impacted by digital transformation. Organization size, industry, organizational culture, competitive edge, innovation in technology, and the capacity of organizations to manage the digital change are some of the variables that might affect the extent of digital transformation. As a result, the research advised firms to comprehend the variables that may affect the effects of the digital revolution and to exploit it to its fullest potential in order to boost efficiency.
References
Abdulai, A.F., (2019). Social capital and innovation performance in firms B. Thomas, L. Murphy (Eds.), Innovation and social capital in organizational ecosystems. IGI Global, Hershey, 81-97
Adeniran, T.V. & Johnston, K.A., (2012). Investigating the dynamic capabilities and competitive advantage of South African SMEs. African Journal of Business Management, 6(11) (2012), pp. 4088-4099
Adner, R. & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal, 31(3), 306-333
Alrawashedh, N. H., & Shubita, M. F. (2024). Impact of digital transformation on the organization’s financial performance: A case of Jordanian commercial banks listed on the Amman Stock Exchange. Banks and Bank Systems, 19(1), 126-134. https://doi.org/10.21511/bbs.19(1).2024.11
Andriole, S. J. (2020). The hard truth about soft digital transformation. IT Professional, 22(5), 13-16.
Apriliene, S., & Joko, S. (2024). The impact of digital transformation in food and beverage sector SMEs: The role of leadership and organizational agility. E3S Web of Conferences 484, 01017 (2024). https://doi.org/10.1051/e3sconf/202448401017
Barba-S´anchez, B., Meseguer-Martínez, A., Gouveia- Rodrigues, R., & Raposo, M. L., (2024). Effects of digital transformation on firm performance: The role of IT capabilities and digital orientation. Heliyon 10 (2024) e27725
Broccardo, L., Truant, E., & Dana, L. P., (2023). The interlink between digitalization, sustainability, and performance: an Italian context, J. Bus. Res. 158 (2023) 113621, https://doi.org/10.1016/J.JBUSRES.2022.113621.
Chen, C.J. & Huang, J.W. (2009). Strategic human resource practices and innovation performance: The mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114
Chen, P., & Kim, S., (2023). The impact of digital transformation on innovation performance - The mediating role of innovation factors. Heliyon 9 (2023) e13916, 1-11.
Drejer, I., (2004). Identifying innovation in surveys of services: A Schumpeterian Perspective Research Policy, 33(3), 551-562.
Edquist, C. Zabala-Iturriagagoitia, J.M. Barbero, J., & Zofío, J. L., (2018). On the meaning of innovation performance: Is the synthetic indicator of the Innovation Union Scoreboard flawed? Research Evaluation, 27(3), 196-211
Gao, D., Yan, Z., Zhou, X., & Mo, X. (2023). Smarter and Prosperous: Digital Transformation and Enterprise Performance. Systems 2023, 11, 329. https://doi.org/10.3390/systems11070329
Gun, L., Imamoglu, S. Z., Turkcan, H., & Ince, H. (2024). Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation. Sustainability 2024, 16, 1200. https://doi.org/10.3390/su16031200
Guo, L., & Xu, L. (2021). The Effects of Digital Transformation on Firm Performance: Evidence from China’s Manufacturing Sector. Sustainability
Kaur, V. & Mehta, V. (2017). Dynamic capabilities for competitive advantage: A comparative study of IT multinationals in India. Paradigm, 21(1), 31-51
Li, S., Gao, L., Han, C., Gupta, B., Alhalabi, W., Almakdi, S., (2023). Exploring the effect of digital transformation on Firms’ innovation performance. Journal of Innovation & Knowledge 8 (2023) 100317
Liu, W., Wang, Z., Shi, Q., & Bao, S. (2024). Impact of the digital transformation of Chinese new energy vehicle enterprises on innovation performance. Humanities and Social Sciences Communications, 11:592. https://doi.org/10.1057/s41599-024-03109-y
Llopis-Albert, C., Rubio, F. & Valero, F. (2021). “Impact of digital transformation on the automotive industry”, Technological Forecasting and Social Change, Vol. 162, 120343, https://doi.org/10.1016/j.techfore.2020.120343.
Loebbecke, C., & Picot, A. (2015). Reflections on societal and business model transformation arising from digitization and big data analytics: A research agenda. The Journal of Strategic Information Systems, 24(3), 149–157. http://dx.doi.org/10.1016/j.jsis.2015.08.002
Luo, J. (2023). A Study of the Effect of Digital Transformation on Firm Performance —— Based on the Mediating Effect of Green Technology Innovation. Proceedings of the 3rd International Conference on Internet Finance and Digital Economy
Lyu, Q., (2024). A study on the impact of digital transformation on the corporate innovation performance. Proceedings of the 3rd International Conference on Business and Policy Studies. https://doi.org/10.54254/2754-1169/79/20241859
Mahraz, M. I., Benabbou, L., & Berrado, A. (2019). A Systematic literature review of Digital Transformation. Proceedings of the International Conference on Industrial Engineering and Operations Management Toronto, Canada, October 23-25.
Ohaka Amarachi Mavisclara, Ibrahim Isiaka Oshobugie, Atoyebi Temitope Olufunmi, Suleiman Mustapha, Adeyinka Taslim Olabode, Ozuruoha Nkiruka Esther and Oyeboade Adekunle Yakub (2025). Engineering Resilience: Harnessing Smart Technologies for Climate-Proof Infrastructure. World Journal of Advanced Engineering Technology and Sciences – (WJAETS), 17(01), 356–369. ISBN: 2582 – 8266. DOI url: https://doi.org/10.30574/wjaets.2025.17.1.1405. https://journalwjaets.com/sites/default/files/fulltext_pdf/WJAETS-2025-1405.pdf
Temitope Olufunmi Atoyebi, Joy Oluwabukola Olayiwola, Akwuma Nathaniel Eru, Ridwan Kolapo and Prema Kirubakaran (2025). Gamification: An Educational Strategy to Increase Students' Motivation and Academic Performance. FUDMA Journal of Sciences (FJS). Volume 9, No. 12, December (Special Issue), 2025, pp 36 – 41, ISSN: 2616-1370. https://doi.org/10.33003/fjs-2025-0912-4164
Uwazie Emmanuel Chinanu, Abah Joel Benign, Temitope Olufunmi Atoyebi (2020); A Survey of Some Key Characteristics of Internet of Things; Published by African Journal of Computing & ICT; Volume13, No. 1, pp. 62 - 75. © Afr. J. Comp. & ICT, March 2020; P-ISSN 2006-1781
Wang, S., & Zhang, H. (2025). Digital Transformation and Innovation Performance in Small- and Medium Sized Enterprises: A Systems Perspective on the Interplay of Digital Adoption, Digital Drive, and Digital Culture. Systems 2025, 13, 43. https://doi.org/10.3390/systems13010043
Wang, S., & Zhang, H., (2024). Inter-organizational cooperation in digital green supply chains: A catalyst for eco-innovations and sustainable business practices. J. Clean. Prod., 472, 143383.
Wang, S.; Zhang, H. Digital Transformation and Innovation Performance in Small- and Medium Sized Enterprises: A Systems Perspective on the Interplay of Digital Adoption, Digital Drive, and Digital Culture. Systems 2025, 13, 43. https://doi.org/10.3390/systems13010043
Wang, Y., Wang, T., & Wang, Q. (2024). The impact of digital transformation on enterprise performance: An empirical analysis based on China’s manufacturing export enterprises. PLoSONE 19(3): e0299723. https://doi.org/10.1371/journal.pone.0299723
Zareie, M., Attig, N., El Ghoul, S., Fooladi, I. (2024). Firm digital transformation and corporate performance: The moderating effect of organizational capital. Finance Research Letters 61 (2024) 105032
Zhao, F.,Meng, T., Wang, W., Alam, F., Zhang, B., (2023). Digital transformation and firm performance: Benefit from letting users participate. Journal of Global Information Management, 31(1), 1-23
Downloads
Published
Issue
Section
Categories
License
Copyright (c) 2026 Sauda Abdulhamid Isa, Temitope Olufunmi Atoyebi, Ridwan Kolapo, Prema Kirubakaran, Eru Akwuma Nathaniel, Solomon Ahiaba

This work is licensed under a Creative Commons Attribution 4.0 International License.