In high-risk industrial sectors, traditional safety training yields low retention and significant financial risk, creating a critical business problem. This research positions Extended Reality (XR) not merely as a technological tool, but as a strategic business innovation driving digital transformation. Using a mixed-methods case study of Bahrain’s leading industrial firms (ASRY, Bapco Refining, and Alba), this paper integrates quantitative survey data (n = 111) with qualitative insights from senior management interviews to evaluate the strategic and financial impact of XR. The findings are conclusive: user belief in XR's efficacy is the primary predictor of adoption, validating the Technology Acceptance Model (TAM) while showing demographic factors like seniority are negligible. The study demonstrates that immersive training significantly enhances knowledge retention and hazard recognition, leading to measurable safety improvements. Crucially, it establishes a strong business case by quantifying a substantial return on investment (ROI) through risk reduction. Despite high initial costs, the financial data supports XR as a high-return investment. This research culminates in the proposal of a novel Digital Immersive Safety Transformation (DIST) Framework, a strategic roadmap for integrating XR into corporate innovation agendas to achieve a sustainable competitive advantage through enhanced safety and operational resilience.