<![CDATA[Many firms invest heavily in digital technology, yet the effect on performance is far from uniform. Some grow rapidly, while others merely move old processes onto a screen. This article aims to explain that difference by positioning dynamic capabilities as the mechanism that links digital transformation to business performance and competitive advantage. The study is a semi systematic conceptual review of 36 journal articles published between 2016 and 2024, retrieved from Google Scholar and OpenAlex in March 2026 and analysed with codebook thematic analysis. The review shows that digital technology yields an advantage only when a firm is able to recognize digital opportunities and threats (sensing), mobilize resources to capture them through new products and business models (seizing), and continuously reshape its structures, processes, and culture (transforming). Empirical evidence from different countries and firm sizes is consistent with this mediating role, although only part of the reviewed studies tested mediation directly. Unlike existing integrative reviews, this article specifies one testable causal chain and states its boundary conditions. The article formulates four propositions for future testing and identifies conditions that strengthen or weaken the relationship, namely firm size, digital maturity, and environmental turbulence. For managers and policymakers, the findings imply that technology budgets need to be matched by budgets for learning, experimentation, and organizational redesign. It concludes that digital transformation is a matter of organizational capability rather than of procurement.]]>
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