In the contemporary business environment, organizations increasingly face challenges associated with technological disruption, globalization, changing customer expectations, and competitive market dynamics. Digital transformation has emerged as a strategic necessity for organizations seeking operational efficiency, innovation capability, and long-term sustainability. However, successful digital transformation requires effective cross-functional collaboration among organizational departments, employees, and management systems. The present study examines the role of cross-functional collaboration in enhancing organizational agility and improving organizational performance in modern enterprises. The study further explores how digital transformation strengthens organizational adaptability, innovation capability, and strategic responsiveness.

The research adopts a quantitative research design using structured questionnaires administered to employees and managers from different organizational sectors. Data analysis was conducted using SPSS and SmartPLS software. Reliability and validity were assessed through Cronbach’s Alpha, Composite Reliability, AVE, Fornell-Larcker Criterion, and HTMT Ratio. Structural Equation Modeling (SEM) was employed to test the relationships among the study variables.

The findings reveal that cross-functional collaboration significantly enhances organizational agility by improving communication systems, teamwork, innovation capability, and workflow coordination. Digital transformation positively influences organizational performance through operational integration, technological innovation, and process optimization. The study further confirms that organizational agility mediates the relationship between collaboration and organizational performance. The research concludes that collaborative organizational culture and digital integration are essential for achieving sustainable competitiveness and organizational adaptability in dynamic business environments.