Digital transformation (DT) is widely recognised as a strategic imperative for organisations seeking to sustain competitiveness in increasingly digitalised environments. Despite extensive research, empirical evidence on how digital transformation translates into financial and non-financial performance remains inconclusive. This study addresses this gap by proposing and empirically testing a model that links digital maturity to organisational performance through internal process efficiency as a process-based mediating mechanism.
The study draws on survey data from 300 managers in Croatian enterprises across multiple industries and tests the proposed model using structural equation modelling (SEM) to examine both direct and mediated relationships.
The results show that both managerial and technological dimensions of digital maturity are positively associated with internal process efficiency, which in turn enhances financial and non-financial performance. The mediating role of internal process efficiency has been confirmed, particularly in contexts where strategic readiness alone does not translate into operational outcomes.
The findings indicate that digital maturity should not be approached only as a technological upgrade, but as an organisational transformation that requires integrating strategic intent, technological capabilities, and internal process redesign. The proposed model helps decision-makers align digital investments with process optimisation to improve organisational performance.
This study advances the literature by introducing a two-dimensional operationalisation of digital maturity and empirically validating the mediating role of internal process efficiency in a transitional economy context. The findings provide novel empirical evidence on this mechanism within a European transitional economy.
