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

Yaying Zhou, Young-Seok Ock (), Ibrahim Alnafrah and Abd Alwahed Dagestani
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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

JRFM, 2023, vol. 16, issue 11, 1-22

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.

Keywords: digital transformation; digitization; firms’ financial performance; bibliometric analysis (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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