📄 Abstract
Digital transformation and organizational performance of firms in Kenya occur within a dynamic business environment shaped by rapid technological advancements, evolving customer expectations, increased market interconnectivity, and intense competition. Despite the widespread adoption of digital technologies, performance outcomes among organizations vary considerably, with some achieving operational efficiency and service delivery improvements while others encounter high implementation costs and weak performance returns. This study reviews empirical literature on the influence of digital transformation dimensions on organizational performance among firms in Kenya. It focuses on four core dimensions: e-commerce adoption, data analytics capability, process automation, and cloud computing adoption, while incorporating organizational culture as a moderating factor. The review synthesises evidence from global, regional, and Kenyan studies and is anchored in Dynamic Capabilities Theory, Institutional Theory and the Resource-Based View. The reviewed literature indicates that e-commerce adoption supports performance through expanded market reach, digital transaction efficiency, and customer engagement. Data analytics capability contributes to performance by enabling pattern recognition, predictive insights, and data-driven decision-making. Process automation supports performance by reducing operational friction, standardizing workflows, and enhancing service delivery, while cloud computing adoption improves scalability, data security, and resource optimization. The evidence further shows that the performance effects of digital transformation are context-dependent and influenced by infrastructural readiness, regulatory compliance, managerial leadership, and organizational learning. The review suggests that digital transformation dimensions influence organizational performance collectively rather than in isolation, and firms that align internal technological resources, institutional adaptation, and dynamic capabilities are better positioned to achieve sustained competitive advantage in the digital economy. Future studies should consider cross-sectoral empirical designs and longitudinal approaches to capture the evolving nature of digital transformation and its long-term impact on firm performance in emerging markets.
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📚 How to Cite:
Kihiu W. Mercy , Mwangi M. Timothy , DIGITAL TRANSFORMATION AND ORGANIZATIONAL PERFORMANCE OF FIRMS IN KENYA , Volume 13 , Issue 9, September 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 36 - 49 ,