Exploring Capabilities for Digital Transformation in the Business Context: Insight from a Systematic Literature Review

Digital transformation is considered a high-risk investment due to the fact that as much as 80% of its initiatives fail. To effectively manage and execute digital transformation, organizations must establish capabilities tailored to this process. Thus, this study aims to identify capabilities essential for digital transformation in the business context. A systematic literature review (SLR) was conducted following the PRISMA. An initial search across major academic databases yielded 542 articles. After applying inclusion and exclusion criteria, 43 relevant articles were selected for in-depth analysis. Descriptive, co-occurrence, and qualitative analyses were then applied. The findings reveal five core dimensions of digital transformation capability: digital dynamic capability, digital leadership capability, employee digital capability, digital technology and operational capability, and digital investment capability. These capabilities demonstrate that successful digital transformation depends not only on technology, but also on leadership, human capital, strategy, and investment that ensure resource readiness. This study contributes to digital transformation theory by identifying essential organizational capabilities and provides insights into how organizations can develop these capabilities to achieve successful digital transformation.