In the era of Industry 4.0, digital transformation has become a cornerstone for modern organizations, fundamentally altering how businesses operate and compete. This study delves into the impact of digital transformation on human resource management (HRM), human resource development (HRD), and employees’ innovative work behaviors and job performance in a rapidly evolving business environment. In conducting a survey among 391 employees from information and communication technology (ICT) companies in China, structural equation modeling was employed to analyze the data. The findings reveal a correlation between digital transformation and innovative work behaviors and job performance, with HRM and HRD playing partial mediating roles. Digital transformation not only optimizes work processes and enhances productivity but also fosters the innovation of business models and processes. Moreover, the research indicates the critical importance of implementing efficient digital systems and processes in promoting an organizational culture of innovation and enhancing employees’ innovative capabilities. Thus, digital transformation is seen as a pivotal strategic tool, altering not just the modus operandi of organizations but also influencing employee behavior and performance.