Sustainability has emerged as a critical issue in development. Digital transformation functions as both an enabler and an effective tool for promoting sustainability. Strategy plays a pivotal role in the process of digital transformation. However, there is a paucity of existing research focused on strategic renewal in digital transformation within the context of China. This study employs organizational learning theory to examine the antecedents and consequences of strategic renewal in digital transformation. Data were collected from 389 government employees through a questionnaire survey and a quantitative analysis was performed to evaluate four hypotheses using structural equation modeling (SEM). The results indicate that knowledge acquisition and organizational memory significantly influence strategic renewal, which in turn affects government performance. The findings of this study could serve as a guide and provide concrete practical approaches for successful digital transformation among governments, thereby laying a foundation for sustainable development.