Improving organizational performance through digital transformation: Using a mixed research method

In the era of digital economy, digital transformation (DT) is inevitable for firms seeking competitive advantage. However, achievement of high firm performance through DT is challenging—both for academia and industry. Existing studies predominantly focus on the net effects of single factors. In contrast, this study posits that high performance is driven by the interaction of three conditions: environmental uncertainty, DT strategy, and digital resources, not from any single condition. First, we establish a theoretical framework by applying the grounded theory approach, and thereafter, adopt the Fuzzy-set Qualitative Comparative Analysis method to empirically investigate 38 firms undergoing DT. The research findings show that: (1) DT strategy is a necessary condition for high performance; (2) There are two types of high innovation performance configurations: “strategy-driven” and “technology-driven,” and two types of high customer performance configurations: “culture-driven” and “technology-driven.” These insights elucidate how DT leads to high performance and offer practical implications for managers.