This empirical study examines how Indian Railways leverages digital ecosystems for organizational transformation and innovation in the context of the Fourth Industrial Revolution. Using a quantitative approach with data collected from 394 stakeholders, the research employs Structural Equation Modeling (SMART PLS) to analyze the interrelationships between five key constructs: retail market characteristics, metaverse technologies, cultural adoption factors, virtual environment consumer behavior, and digital ecosystem marketing strategies. Results indicate that metaverse technologies significantly influence consumer behavior in virtual environments (β = 0.222, p < 0.05), which subsequently impacts marketing strategies (β = 0.278, p < 0.01). The study reveals that while traditional cultural barriers do not significantly impede technology adoption, challenges persist in digital literacy and infrastructure readiness. Integration of artificial intelligence, Internet of Things, and blockchain technologies shows promise for enhancing operational efficiency and customer experience. However, the model’s relatively low explanatory power for marketing strategies (R2 = 0.077) suggests that external factors such as policy frameworks and infrastructure development play crucial roles in successful digital transformation. These findings provide valuable insights for railway administrators and policymakers in developing nations pursuing digital modernization of traditional transportation systems.