Measuring the Impact of Digitalization on Firm Performance : A Literature Review Towards an Integrated Framework and Recommendations for Future Research

Abstract

Digitalization has emerged as a critical driver of firm performance, reshaping how businesses operate, innovate, and compete. Digital technologies such as artificial intelligence, big data analytics and cloud computing offer new opportunities for enhancing operational efficiency, customer engagement, and financial growth. Despite its significance, the measurable impact of digitalization on firm performance remains subject of debate, with studies reporting both substantial benefits and notable challenges. This systematic literature review synthesizes existing research to analyse how digitalization influences firm performance across different business areas and identifies key performance indicators used to measure the respective effects. In aligning with Sustainable Development Goal 9 (Industry, Innovation, and Infrastructure), the review highlights the role of digitalization in fostering sustainable industrial performance. Finally, it identifies existing research gaps and suggests the need for a standardized performance measurement framework to better evaluate digitalization outcomes across industries.