Paper ID:
IJSDIP_2025_VOLUME 13_ISSUE 4_117-125
Author's Name:
Ms. Tasshvi Garg
Volume:
13
Issue:
Issue 4
Year:
2025
Pages:
117-125
Abstract
The digital transformation has become an urgent consequence of economic growth across the world, shift in the way companies work, compete, and grow. This paper explores the effects of digital transformation on economic growth and performance of firms based on trends of technological adoption, productivity improvement, innovation results, and competitiveness in the market. Through secondary data analysis, case-based evidence and industry reports, the research shows that digital transformation greatly enhances efficiency in operations, customer engagement, and scale-up of firms in competitive markets at reduced speed. On a macro level, digitalization provokes the emergence of new jobs, new business models, and contributes to the national productivity. Nonetheless, this does not equally impact industries because some industries are not equally digital-ready and do not have equal access to resources. Operational constraints are problems such as financial constraints, shortage of skilled workforce, cybersecurity, and unstable regulatory frameworks. The paper proposes new ways forward, including further AI-powered decision systems, greater digital infrastructure, better digital literacy, and creation of sustainable digital system innovation ecosystem.
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