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What Aspects Explain the Relationship between Digital Transformation and Financial Performance of Firms?

Author

Listed:
  • Yaying Zhou

    (Graduate School of Management of Technology, Pukyong National University, Busan 48547, Republic of Korea)

  • Young-Seok Ock

    (Graduate School of Management of Technology, Pukyong National University, Busan 48547, Republic of Korea)

  • Ibrahim Alnafrah

    (Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia)

  • Abd Alwahed Dagestani

    (School of Business, Central South University, Changsha 410083, China
    Faculty of Economics, University of Tishreen, Lattakia P.O. Box 2230, Syria)

Abstract

The emergence of digital transformation and digitization has significantly influenced business growth, particularly in response to the COVID-19 pandemic. This study conducts a systematic bibliometric analysis to investigate the relationship between digital transformation and firms’ financial performance. The primary objectives are identifying research gaps and proposing future research directions and policy implications. Specifically, we examine the evolution of digital transformation in companies and its impact on their financial performance, while highlighting the major trends in digital transformation research. Employing text mining techniques, network analysis, and a systematic literature review (SLR), we evaluated 153 articles published between 2014 and 2023. Our analysis delves into academic publication journals, geographical locations, authors’, and academic institutions’ contributions, assessing their influence on the existing literature’s development. Our findings indicate a current absence of a consistent theoretical framework in the scientific literature pertaining to the study of digital transformation and its effects on firms’ financial performance. Furthermore, we have pinpointed specific areas that warrant further investigation, including SMEs, non-listed companies, and intermediary or mediating variables. Finally, this systematic bibliometric analysis contributes to the ongoing discourse on digital transformation and its influence on firms’ financial performance, summarizing the current scientific research and proposing new research directions for future studies, while also offering valuable insights for researchers, policymakers, and practitioners.

Suggested Citation

  • Yaying Zhou & Young-Seok Ock & Ibrahim Alnafrah & Abd Alwahed Dagestani, 2023. "What Aspects Explain the Relationship between Digital Transformation and Financial Performance of Firms?," JRFM, MDPI, vol. 16(11), pages 1-22, November.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:11:p:479-:d:1277881
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    References listed on IDEAS

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    7. Vinit Parida & David Sjödin & Wiebke Reim, 2019. "Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
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    Cited by:

    1. Jaime Díaz-Arancibia & Jorge Hochstetter-Diez & Ana Bustamante-Mora & Samuel Sepúlveda-Cuevas & Isidora Albayay & Jeferson Arango-López, 2024. "Navigating Digital Transformation and Technology Adoption: A Literature Review from Small and Medium-Sized Enterprises in Developing Countries," Sustainability, MDPI, vol. 16(14), pages 1-31, July.

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