Digital technologies have become pervasive globally, inducing Digital Transformation (DT), which is the disruption of the traditional status quo and a radical redesign of business models, services, products, cultures, processes and organizational structures. However, the literature reports high DT failure rates with high costs. Thus, understanding the key DT constructs in relation to organizational performance was an essential knowledge requirement, the absence of which precluded the effective management of DT and obstructed the mitigation of high DT failure rates. The lack of empirical quantitative research that exposed and tested key DT constructs and their interrelationships with organizational performance was the study’s research problem and knowledge gap, and developing that knowledge was the study’s original contribution. The study’s objective was achieved by gathering quantitative data using a questionnaire survey from relevant organizational respondents in a large municipality, given its vital daily importance to over a million people who relied on the organization for basic services. The study found that sensing capability, change management, IT/digital proactive stance and IT/digital business spanning and infrastructure capabilities positively influence DT and DT, in turn, positively influences organizational performance/service delivery and social and environmental sustainability. Negative findings were that seizing and reconfiguring capability and risk management have no influence on DT. The study offers organizational management a quantified conceptual model for effectively understanding and managing DT environments for improved DT, organizational performance/service delivery and sustainability. For DT and related scientists, the study establishes novel foundations for further DT theory progression and knowledge generation.