Digital transformation (DT) in higher education institutions (HEIs) depends not only on technology but also on support from different organizational enablers, including a digital organizational culture that emphasizes technological advancement, experimentation, and innovation. In this paper, we empirically examine whether digital culture statistically mediates the association between the digital maturity (DM) of Academic Teaching & Learning and the overall digital transformation (DT) in higher education. Using survey data from stakeholders across four HEIs in Bosnia and Herzegovina and Croatia, we estimate a simple mediation model. Our empirical results indicate that a digitally oriented culture is associated with the link between DM of Academic Teaching & Learning and DT, suggesting that pedagogical innovations are more likely to be associated with higher perceived transformation when digital culture is more developed and accepted within an HEI. In conclusion, we identify implications for higher education institutions and policy in Bosnia and Herzegovina and Croatia and formulate recommendations for future research.