Higher education institutions operate in an increasingly volatile and unpredictable landscape, where digital transformation has gained significant attention. This study investigates how digital transformation influences organizational performance by strengthening knowledge management processes within these institutions. After a comprehensive literature review, the research employs a sequential mixed-method design. In the first phase, quantitative data is analyzed using SPSS to confirm the proposed model. In the second phase, the model is validated through further analysis involving a substantial sample of 246 administrators from 82 institutions. The results demonstrate that digital transformation plays a crucial role in enhancing knowledge management processes, which, in turn, improves organizational performance in higher education institutions.