The nexus of digital transformation and innovation: A multilevel framework and research agenda

Abstract

This study addresses the fragmented understanding of the relationship between digital transformation (DT) and innovation by proposing a multi-level framework that integrates diverse disciplinary perspectives. This framework provides deep insight into how DT influences innovation. A systematic literature review was conducted, and based on the findings, a research agenda was outlined as a roadmap to guide future studies. This research contributes to the strategic change and innovation literature by providing a multi-level framework explaining how DT-driven structural change affects innovation, considering various contingencies such as market dynamics, technological advancements, and organizational capacities. Additionally, this study contributes to the innovation and strategic information systems domain by demonstrating that DT's role as a strategic asset for achieving innovation should align with firm capabilities, structural characteristics, and environmental and external dynamics.