<p>This study addresses the fragmented nature of digital transformation research in microfinance by developing a multi-level Technology-Organization-Environment (TOE) framework that extends beyond traditional single-institution analysis. Through systematic literature review and bibliometric analysis of 134 documents spanning 2016–2025, the research reveals critical gaps in understanding how digital transformation unfolds across different organizational scales. The analysis identifies extensive interdependencies among TOE factors, with 37 technology-organization overlaps, 25 technology-environment overlaps, and 20 organization-environment overlaps, demonstrating that successful digital transformation cannot be understood through isolated single-level approaches. The proposed framework operates across three interconnected levels: macro (national/policy), ecosystem (industry/regional), and institutional (individual MFI), each exhibiting distinct TOE characteristics while maintaining dynamic cross-level interactions. Bibliometric findings reveal an emerging shift toward Global South research leadership, with India and China contributing 83 and 36 publications respectively, challenging traditional North–South knowledge transfer patterns. The study identifies "digital innovation" and "financial inclusion" as critical bridging concepts that connect advanced technological applications with grassroots implementation realities. This multi-level TOE framework provides theoretical advancement for digital transformation research while offering practical guidance for coordinated intervention strategies across national infrastructure development, industry ecosystem collaboration, and institutional capacity building, ultimately contributing to more effective financial inclusion through digital innovation.</p>