With the increasing pace of technological advancement, the complexity of digital transformation companies undergo to adapt to this change is also growing. Current studies characterize this complexity as multidimensional, continuous, disruptive, radical, and complex. In practice, companies need to explore innovative and suitable methods to overcome this complexity, continuously. To support this, there is a need for scientific studies to fill the gap that constantly emerges between practice and theory. An up-to-date digital transformation model has been designed in light of interviews with executive-level managers in organizations that have practical experience in digital transformation, along with the examination of frameworks and maturity models in the literature. Through this model, the data is collected with a questionnaire using scales of employee engagement, employee performance and organizational performance, and misalignment in digital transformation. Grounded theory and structural equation modeling were used for data analysis. Findings show that misalignment in digital transformation negatively affects employee performance and organizational performance with a full mediation effect of employee engagement.