Theory of Digitalization: Contemporary Theory of Digitalization
DOI:
https://doi.org/10.64060/IJDSS.v2i1.4Keywords:
Contemporary Theory of Digitalization, CToD, Theory of Digitalization, Layers of CToD, 3D, 5D, 7DAbstract
The Contemporary Theory of Digitalization (CToD) seeks to explain digitalization not merely as the adoption of digital technologies, but as a comprehensive, systemic, and evolving transformation that reshapes how organizations function internally and how they interact with other organizations across global networks. CToD provides a logical and conceptual framework that helps organizations to understand, design, govern, and sustain digital transformation in a rapidly changing technological, economic, and social environment. The theory recognizes digitalization as a multidimensional phenomenon involving technology, people, processes, institutions, and power relations rather than a purely technical upgrade. The innovation of CToD lies in its three-level structure, which reflects increasing degrees of digital maturity and complexity. Level 1 is a foundational digital order, whereas Level 2 is an operational digitalization, and Level 3 is Digital Connectivity and Global Interaction. This layered approach allows scholars and practitioners to analyze digitalization systematically, identify weaknesses, and design targeted interventions. It also facilitates empirical testing and comparative analysis across sectors and jurisdictions.
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