In today’s fast-paced economy, digital transformation is essential for sustainable business growth and competitive advantage. This study explores the critical role of Adaptive Strategic Management (ASM) in driving organizational growth, with digital innovation serving as a key moderating and enhancing factor. The primary goal is to analyze how digital innovation affects the ASM-business growth relationship by improving adaptability and responsiveness and integrating digital technologies into operations. Using a mixed-methods approach, the study combines quantitative data from structured surveys with qualitative insights from interviews and case studies. Essential factors for successful digital integration include strong leadership, robust IT infrastructure, and comprehensive employee training. The study addresses challenges such as resistance to change, skills gaps, and legacy system integration, offering strategies like targeted upskilling, change management, and strategic alignment. The findings provide actionable insights for business leaders on aligning digital initiatives with ASM to foster resilience and competitiveness. Recommendations include creating digital literacy programs, establishing Digital-ASM Alignment Offices, and adopting customer-focused digital strategies. Policymakers are encouraged to build supportive environments for digital transformation, while investors are advised to prioritize firms that effectively integrate ASM and digital innovation. This research contributes to the literature on strategic management and digital innovation by presenting empirical evidence of the synergies between ASM and digital tools. Future studies should examine sector-specific applications, cultural impacts, and emerging technologies to deepen understanding of ASM’s role in driving sustained growth and ESG objectives..