Strategic Capability and Portfolio Governance in Higher Education Digital Transformation: A Systematic Literature Review

Abstract

Abstract

Digital Transformation (DT) has become a new strategic necessity of higher educational institutions (HEIs); However, many efforts remain fragmented, poorly correlated, and disproportionate with respect to institutional strategy. Whereas prevailing scholarship discusses the concept of digitalization in the context of education, the integration between the theoretical analysis of strategic capability and the praxis of project portfolio governance remains limited. This study aims to address this gap by conducting a systematic literature review of 16 peer-reviewed articles identified in Scopus and analyzed using a PRISMA-oriented protocol. Thematic synthesis identified five general terms, namely, strategic capability gaps; portfolio-based governance mechanisms; alignment and decision-making challenges; the complexity of external partnerships; and portfolio change outcomes. Empirical research shows that DT in HEIs is often sought out at the project level without coherent portfolio management, resulting in capability fragmentation and limiting value capture. In addition, the ever-increasing dependence on outside partners accentuates the complexity of governance and creates the necessity to structure the orchestration of capability. The conceptual framework of strategic capability and portfolio management developed in this review introduces a model of governance that is highly customized to supervise the administration of digital transformation in multifaceted institutional matrices. In turn, the paper adds to the body of literature on agile management, explaining how the alignment of capabilities and the coordination of portfolios at the strategic level can promote institutional responsiveness, strategic coherence, and long-term sustainability.

Keywords: Digital Transformation, Higher Education, Strategic Capabilities, Project Portfolio Management, Governance Alignment