Digital transformation factors: how regulation is addressed in initiatives

Purpose This study examines how regulation is addressed in digital transformation (DT) initiatives, identifying the regulatory factors that are considered within digital transformation initiatives and framing regulation as a core dimension of digital governance. Design/methodology/approach A quantitative research design was employed, combining a narrative literature review with empirical validation through a survey of 205 professionals involved in DT projects in two countries. Data were collected using a seven-point Likert-scale questionnaire and analyzed using descriptive statistics to identify patterns and assess the relevance of regulatory factors. Findings The findings reveal that organizations strongly prioritize regulatory compliance, data protection, and digital governance as key regulatory dimensions emphasized within DT initiatives. These elements are associated with ensuring security, ethics, and organizational legitimacy. However, aspects such as internal policy updates, regulatory influence on strategic decisions, and challenges related to regulatory obsolescence receive comparatively less emphasis, highlighting gaps in adaptive and strategic regulatory integration. Research limitations/implications This study advances the theoretical understanding of digital transformation by establishing regulation as a multidimensional and integral component of DT initiatives. It provides empirical support for a structured set of regulatory factors (such as compliance, data protection, governance, and regulatory risk management), demonstrating their differentiated integration within organizations. Practical implications The results provide actionable guidance for managers by emphasizing the integration of compliance, data protection, and governance mechanisms into DT initiatives from early stages. They also highlight the need to strengthen internal policy alignment and responsiveness to evolving regulatory environments. Originality/value This study contributes by conceptualizing regulation as an internal and active dimension of DT rather than merely an external constraint. It proposes and empirically validates a structured set of regulatory factors and offers a replicable instrument that bridges legal compliance and technological innovation, supporting more sustainable and effective digital governance.