Digital Transformation and Business Growth in Emerging Markets: A PRISMA-Based Systematic Literature Review of Strategic Leadership and Data Analytics

Abstract

As a strategic imperative in the context of emerging markets, digital transformation is associated with institutional, infrastructural, and technological challenges, but also with great potential for supporting the sustainable performance of firms facing rapid change in such an environment. However, the mechanisms through which digital transformation supports sustainable firm performance have not yet been extensively examined, especially concerning its relation to data analytics and strategic leadership. Based on a systematic literature review guided by the PRISMA principles, this study attempts to fill the identified gap in existing knowledge. After searching four main academic databases, including Scopus, Web of Science, ScienceDirect, and SpringerLink, a total number of 1,512 studies were considered for inclusion. Finally, after removing duplicates and assessing eligibility, 97 peer-reviewed publications were retained for the final analysis. The results show that digital transformation has a significant impact on business growth in emerging economies; however, this effect is moderated by the way organizations implement digital transformation initiatives within their strategies. Specifically, digitally transformed companies using integrated digital transformation approaches perform better compared to those applying fragmented or solely technology-oriented digital initiatives. Further, the review indicates strategic leadership as a key enabler, facilitating alignment between digital transformation goals and organizational aims, promoting adaptability, and leading to organizational transformation. Moreover, data analytics capabilities are found to be used as an intermediate driver enabling conversion of digital assets into value creation through insight generation and innovation. Finally, technological leapfrogging represents a specific process in emerging economies whereby firms are able to circumvent traditional developmental stages thanks to mobile technologies and digital ecosystems. This paper suggests a model of the interaction among digital transformation, strategic leadership, and data analytics illustrating that the three constructs are tightly interrelated and interdependent factors of organizational performance. Thus, this study contributes to existing literature on digital transformation from the perspective of emerging markets and delivers practical implications for managers and policymakers.