Unravelling the great enigma: dynamic capabilities for digital transformation in entrepreneurial ventures

Purpose This study aims to explore how entrepreneurial ventures can effectively approach digital transformation. By developing a comprehensive framework, it extends the dynamic capabilities perspective and offers valuable insights for both scholars and practitioners seeking to navigate the complexities of digital transformation and harness its potential for competitiveness and growth. Design/methodology/approach A systematic literature review of 85 peer-reviewed articles on digital transformation in entrepreneurial ventures was conducted. Using the Gioia methodology, we identified and synthesized emerging themes into ten aggregate dimensions. These were then integrated into a theoretically grounded framework aligned with the dynamic capabilities view. Findings The study presents an entrepreneurial perspective on digital transformation, identifying ten key dimensions: (1) organizational resource reconfiguration, (2) interoperability of reconfigured assets, (3) market-informed resource reconfiguration, (4) customer-aligned resource reconfiguration, (5) leadership capability reconfiguration, (6) joint resource reconfiguration, (7) regulatory scanning and compliance reconfiguration, (8) portfolio reconfiguration under liquidity constraints, (9) IT reconfiguration and data governance and (10) human capital reconfiguration. These dimensions illustrate the multifaceted nature of digital transformation and underscore the centrality of dynamic capabilities in enabling ventures to continuously adapt, integrate and reconfigure resources to sustain competitive advantage in digitally evolving environments. Research limitations/implications The study is limited to peer-reviewed literature, which may exclude relevant insights from grey literature or practitioner sources. Future research should empirically examine the relationships between the identified dimensions and performance outcomes. Practical implications Digital transformation is essential for the survival and growth of entrepreneurial ventures. Aligning new technologies with existing practices, while overcoming constraints such as limited resources and resistance to change, requires adaptive leadership and a strong learning culture to sustain a competitive edge. Originality/value This study introduces a novel framework for digital transformation in entrepreneurial ventures, emphasizing reconfiguration-oriented dynamic capabilities. Using the Gioia methodology, it extends the dynamic capabilities perspective by highlighting reconfiguration as a core mechanism for adapting to digital challenges. The framework addresses a key gap in the literature and offers a targeted approach to how entrepreneurial firms realign resources and capabilities to remain competitive in rapidly evolving environments.