Mechanisms of Digital Transformation for Managerial Innovation: A PRISMABased Review

Abstract

Digital transformation is increasingly redefining the managerial practices, organizational coordination, and results of innovation in diverse industries. Empirical studies have created connections between digital capabilities, organisational agility, performance measures, and the creation of new business models, but the current literature is scattered and mostly descriptive. This current research paper is a systemic review of recent literature that aims at questioning the processes by which digital transformation enables managerial innovation. The review uses a PRISMA-conformable screening protocol to summarize the results of 25 peer-reviewed articles. The analysis presents three most common ways in which digital transformation is connected to the results of innovation: (1) digital capability building, (2) managerial process redesign, and (3) business-model innovation. The comparative analysis reveals that small and medium enterprises focus on ability building, industrial firms are oriented on strategic performance, and organisations of the public sector dedicate their efforts to the system of governance and role redesigning. The article reflects gaps in research in relation to intersecting research sectors, integration of theory, and causal explanation. It hypothesizes a conceptual framework that locates the digital capabilities onto managerial and innovation outcomes through mediating mechanisms and contextual moderators. These observations are the refinement of a research agenda based on multilevel processes, longitudinal studies, and sector-specific patterns of digital transformation.