As emerging digital technologies and capabilities continue to dominate our economic landscape, organizations are facing increased scrutiny on how digital transformation can provide the mechanism for innovation and firm performance. Using resource-based view (RBV) framework, this research examines the mediating effects of digital transformation in the relationship between IT capability and firm performance. Empirical data collected from CIOs from US firms reveal that although IT capability positively influences firm performance, it is mediated by digital transformation. Furthermore, our findings show that digital transformation positively influences innovation and firm performance while innovation is reaffirmed as having a positive implication on firm performance
