It is all about digitalization: investigating antecedents and effects of digital transformation

Abstract Digital transformation is increasingly recognized as a vital driver of competitiveness, yet the precise organizational factors that most strongly influence its success remain ambiguous. This study addresses this gap by examining how strategic, operational, organizational, and cultural factors jointly relate to digital transformation outcomes, and by uncovering the mediating role of innovation success in shaping overall company success. Drawing upon data from 279 organizational key informants in Germany with substantive involvement in digital transformation, this study develops a holistic framework that not only identifies key organizational factors relevant for digital transformation success but also compares their associations with transformation success when considered simultaneously. The findings reveal numerically larger associations for cultural and operational factors, whereas strategic and organizational factors exhibit smaller coefficients, with the organizational-domain association only marginally significant ( p < 0.10). Although bootstrap-based parameter-difference tests do not support a statistically established ranking of the four domains, the results underline the relevance of all four domains while suggesting that cultural and operational conditions may warrant particular attention depending on firms’ specific transformation context. Furthermore, the results reveal a significant indirect association between digital transformation success and company success through innovation success, accounting for around 60% of the total association in the specified model. Hence, organizations seeking to maximize the returns on their digital initiatives should consider cultural and operational conditions alongside the strategic and organizational foundations of digital transformation. Taken together, these insights offer actionable guidance for businesses aiming to allocate their resources strategically, consider cultural and operational conditions as important diagnostic starting points, and harness the full potential of digital transformation through a concerted emphasis on innovation.