Digital transformation has become a critical strategic requirement for today\'s firms aiming at gaining sustainable competitive advantage in the digitized economy. The current research paper explores the complex connection between digital transformation projects and competitive advantage, bringing together the existing empirical literature on the subject matter based on recent studies in manufacturing, finance, and SME industries. The research methodology is a mixed methods design that involves both the quantitative examination of the enterprise level data and the configurational analysis aimed at uncovering the ways digital competence is translated into competitive advantage. It is found that digital transformation is critical for improving enterprise competitiveness via many means such as operational efficiency, innovation competence, and strategic management accounting implementation. Moreover, management features, digital competence, and cyber security competence are found to be the important moderating factors of the successful implementation of digital transformation projects.