This study aimed to investigate the contribution of digital transformation to enhancing organizational performance in private universities in the southern governorates of Palestine during the period 2013–2023. It sought to examine the relationship between digital transformation, organizational values, and organizational performance, as well as to determine the extent to which digital transformation contributes to improving the efficiency and effectiveness of university operations. The study was motivated by the growing importance of digital transformation as a contemporary approach for developing higher education institutions and strengthening their ability to respond to rapid technological and educational changes. So, the study employed the descriptive-analytical approach, which was deemed appropriate for achieving its objectives. The study population consisted of 700 employees working in private universities in the southern governorates of Palestine, while the final study sample included 376 respondents. Data were collected using a structured questionnaire and analyzed through Smart-PLS V4 to examine the direct and indirect relationships among the study variables and the findings revealed a strong positive effect of digital transformation on organizational performance, with path coefficients of 0.707 in the organizational values model and 0.711 in the strategy implementation model, confirming the pivotal role of digital transformation in improving institutional performance. The results also indicated a statistically significant positive relationship between organizational values and organizational performance, with a direct effect coefficient of 0.181. Furthermore, organizational values demonstrated a substantial positive effect on digital transformation, with a coefficient of 0.617, highlighting the importance of a supportive organizational culture in facilitating successful digital transformation initiatives. Based on these findings, the study recommends that private universities adopt comprehensive digital transformation strategies, strengthen organizational values that encourage innovation and continuous improvement, and provide specialized training programs to enhance employees’ digital competencies, thereby improving organizational performance and supporting sustainable development in higher education institutions.............. Keywords: ............Digital Transformation, Organizational Performance, Organizational Values, Private Universities.