How Does Digitalization Shape the Business Financial Performance: A Systematic Review

This systematic literature review (SLR) examines how digitalization shapes the financial performance of businesses by synthesizing research published from 2014 to 2024. The study analyzed 30 articles, focusing on digitalization's influence on financial performance to address relevant research needs and provide indicators, measures, and metrics that have been a subject of debate among scholars. The research utilized the Adaptive Enterprise Architecture (EA) framework to categorize findings across various layers: interaction, human, technology, environment, and security. Key findings indicate that digitalization significantly enhances financial performance through improved profit levels, sales growth, and market share among others, with questionnaire surveys being the predominant method for measurement. The study reveals notable gaps in the literature, particularly regarding the technology, environment, and security layers, and opens the need for further research in these areas. The implications for practitioners include prioritizing digitalization efforts that boost financial outcomes, while researchers are encouraged to address the identified gaps to advance the understanding of digitalization's financial impact. We propose that future studies should investigate how digitalization affects financial performance over the long run, specifically focusing on market competitiveness, Return on Investment (ROI), and sustainable profitability. Longitudinal research could provide a more thorough picture of how digitalization affects financial outcomes over time.