This study investigates the drivers, organisational readiness, and outcomes of digital transformation in publicly funded Higher Education Institutions (HEIs) in Ireland. It explores how Irish HEIs navigate digital transformation. While digital transformation is critical for organisational efficiency, and public value realisation, existing research often neglects its strategic, operational, and cultural dimensions, particularly from the standpoint of HEI managers responsible for the pragmatic translation of governance into practice amid competing global and local priorities. To address these gaps, this study employs a critical realist ontology and introduces the HEIDT conceptual framework, which conceptualises digital transformation as an emergent, nonlinear process shaped by multi-dimensional factors. Using mixed methods, the study synthesises survey and interview data. It finds that Irish HEIs experience three concurrent change types: exogenous rapid (e.g., COVID-19 adaptation), exogenously driven gradual (e.g., policy-driven mergers), and endogenous gradual (e.g., ongoing digitalisation). However, organisational inertia, power asymmetries between leadership and academics, and resistance to change limit HEIs’ ability to undertake more ambitious transformations. Structural and resource constraints, compounded by managerialist governance that conflates efficiency with institutional legitimacy, further constrain digital transformation efforts. This study advances theoretical, practical, and policy-based understandings of HEI digital transformation. The HEI-DT framework offers a novel approach to conceptualising digital transformation. By adopting a critical realist ontology, the study examines the external forces and internal organisational factors shaping digital transformation. Recommendations include employing mixed-methods research grounded in critical realism, and utilising the HEI-DT framework to guide digital transformation initiatives. The study advocates for a shift from metric-driven, top-down governance to context-sensitive, values-based policy that safeguards academic autonomy and public value. Emphasising collaborative leadership, stakeholder partnerships, and regional engagement, it highlights the importance of co-designing digital strategies to ensure alignment with HEI missions. These contributions offer a pragmatic foundation for advancing sustainable digital transformation in higher education.