Integrating Artificial Intelligence into Digital Transformation Strategy: A Framework for Sustainable Enterprise Growth
Abstract
Digital transformation and artificial intelligence are reshaping how organizations develop capabilities, make decisions, innovate, and pursue sustainable performance. However, existing research largely examines digital transformation, Dynamic Capabilities, AI capability, organizational intelligence, and sustainability through fragmented theoretical perspectives, providing limited explanation of how these domains connect within an integrated organizational pathway. This conceptual paper addresses this gap by developing an integrated theoretical framework linking Strategic Digital Transformation, Dynamic Capabilities, AI-Enabled Organizational Capability, AI-Enabled Organizational Intelligence, and Sustainable Enterprise Performance. Drawing on the Dynamic Capabilities perspective and AI capability literature, the framework positions AI as an organizational capability pathway rather than an isolated technological driver. It conceptualizes Data & Technology, People & Skills, and Organization & Processes as mutually reinforcing dimensions of AI-Enabled Organizational Capability, supporting AI-enabled decision-making and innovation as mechanisms of organizational intelligence. Five theoretical propositions articulate the proposed relationships and explain how capability development connects strategic transformation with economic, environmental, and social performance. The framework contributes an integrated theoretical pathway for explaining how organizations can translate digital and AI capabilities into intelligent and sustainable enterprise outcomes
