Mapping the Impact of Digital Technology Adoption on Business Performance: A Systematic Literature Review Based on the TOE Framework

Abstract

This study offers a systematic literature review (SLR) examining how digital technology adoption influences business performance through the Technology–Organization–Environment (TOE) framework. It addresses the growing interest in understanding how digital investments contribute to competitive advantage, particularly amid rapid technological change and uncertain environments. Using the PRISMA 2020 protocol, we conducted a comprehensive search in the Scopus database and identified 47 empirical studies published between 2006 and 2024. These studies explicitly applied the TOE framework and evaluated business outcomes such as financial, operational, innovation, or sustainability performance. We analyzed the findings using a combination of thematic synthesis and comparative mapping. Our review reveals six key findings. First, critical technological characteristics—like compatibility and observability—affect firms’ willingness to adopt new technologies. Second, organizational readiness factors such as strong leadership and a supportive digital culture are vital for successful digital transformation. Third, external forces (e.g., market competition and regulatory pressure) significantly influence adoption decisions. Fourth, while digital adoption generally improves performance, the benefits vary across firms and contexts. Fifth, adoption patterns differ by sector and region. Sixth, research in this field is increasingly employing hybrid methodologies, although longitudinal studies remain rare. This review contributes by reinforcing TOE as a robust framework for understanding digital transformation, especially when combined with theories like the Resource-Based View and Institutional Theory. It also underscores the need for future research to employ innovative methodologies and to consider diverse contextual factors in digital adoption.