Digital transformation (DT) is increasingly recognized as a disruptive force reshaping organizational structures, governance models, and societal paradigms. As businesses and institutions undergo digital transformation, they are confronted with challenges that question the traditional boundaries of management theories. These challenges are not only technological but also deeply institutional, involving tensions between existing institutional norms and the emerging demands of the digital era. This transformation brings with it a complex interplay of institutional pressures and systemic coupling mechanisms that have yet to be fully understood or theorized. Therefore, the need for theoretical deconstruction and paradigm innovation is crucial to comprehending the transformative processes in the digital age. This study, using an institutional perspective, addresses these gaps by applying a systematic literature review (SLR) methodology, coupled with Python and R language analyses, to synthesize the antecedents, processes, and outcomes of digital transformation. The goal is to develop a robust analytical framework that provides both theoretical insights and practical guidance on how organizations can navigate the complexities of digital transformation.

The research constructs an analytical framework that centers on the triadic structure of “driving forces—transformation process—transformation outcomes.” This framework aims to integrate the dynamic relationships between external institutional drivers, the organizational transformation processes they induce, and the resulting organizational outcomes in the context of digital transformation.

Firstly, the study explores how institutional pressures such as policy, legislation, social expectations, competitive forces, best practices, and industry standards shape the digital transformation journey. It analyzes the ways in which these external forces—acting as institutional elements—drive organizational change by compelling firms to adopt digital technologies. The role of institutional pressures in fostering organizational adaptability to new digital practices is critically examined, with particular attention to the mechanisms through which organizations respond to external environmental shifts. The study emphasizes how these institutional drivers contribute to the acceleration of digital transformation across various sectors, compelling businesses to reconsider traditional practices and adopt new digital strategies.

Secondly, the paper delves into the mechanisms of de-institutionalization and re-institutionalization within organizations undergoing digital transformation. It posits that digital transformation is not simply the adoption of new technologies but also involves a cyclical process of dismantling traditional institutional norms (de-institutionalization) and constructing new institutional frameworks (re-institutionalization). This dynamic is central to understanding how organizations must manage the tensions between old and new systems during digital transformation. The study also highlights the evolutionary nature of this process, showing that organizations must constantly adjust and adapt as they encounter new digital technologies, competitive pressures, and regulatory demands.

Finally, the paper discusses the institutional outcomes of digital transformation, focusing on how these transformations lead to shifts in organizational structures and business models. Key outcomes discussed include technology adoption and the realization of new digital functions, servitization and intelligent transformation of products and services, and the reconfiguration of supply chains and organizational collaboration. These outcomes underscore how digital transformation is deeply institutionalized, affecting not only technological adoption but also the very way organizations operate and collaborate across value chains. The study provides a framework for understanding these outcomes through the lens of institutional theory, revealing how institutional environments play a significant role in shaping the trajectory and success of digital transformations.

From a theoretical perspective, this study constructs a multi-level analytical framework for digital transformation, integrating the fragmented research on digital transformation from an institutional perspective. It emphasizes that institutional pressures drive digital transformation through three mechanisms (coercive, normative, and mimetic), and proposes a dual process of de-institutionalization and re-institutionalization. This not only explains the institutional roots of the phenomenon of "digitalization without transformation," but also fills the gap between institutional theory and transformation practices in the context of the digital economy. From a practical perspective, the study highlights that China’s multiple transformation tasks require the external force of institutional environments to drive digital transformation. It suggests strengthening institutional supply and adaptation at the government, industry, and organizational levels to promote the deep integration and sustainable development of digital transformation.