In recent years, there has been an increasing scholarly and institutional attention on digital transformation. This is expected, given that consumers’ widespread adoption of digital technology, combined with its disruptive influence on various industries, is prompting organizations to incorporate digital strategies to survive and improve their competitiveness. Although a substantial body of prior research on digital transformation exists, it remains fragmented, often limited to a single concept, industry, or framework. Combined with the rapid pace of disruption, many earlier insights are now outdated or incomplete. This study addresses these gaps by conducting a systematic literature review of 170 peer-reviewed articles, using the methodology of Webster and Watson (2002), complemented by bibliometric analysis. Articles were thematically coded to identify key drivers, barriers, elements, and organizational actors involved in shaping digital transformation strategies. Based on our findings, we propose a theoretical model that considers digital transformation as a contingent dynamic capability: organizations sense pressures, seize opportunities, and reconfigure resources, but outcomes depend on multi-level contingencies (institutional, industry, organizational, personal) and the alignment of leadership vision, governance, digital culture, skills, process redesign, and technological infrastructure, roles often led by the Chief Digital Officer (CDO) or the Chief Information Officer (CIO). We also found that barriers related to culture, skills, leadership, and technology, as well as risks and policies, shape transformation strategies. This research contributes to the literature by offering a current synthesis and a theoretical framework, providing both scholars and practitioners with a comprehensive understanding of digital transformation in rapidly evolving environments.
