Advances in digital technologies have changed the industry structure and the rules of business competition as shown in the list of global top 10 companies in terms of market capital. Digital transformation, defined as the effort to standardize, modularized, and digitalize resources and processes of a company to provide solutions for customer problems, requires leadership and entrepreneurship to achieve the expected goals in an effective manner. Entrepreneurship, the most fundamental to the development of business, has been expanded to include digital elements in it. In this study, we define digital transformation and identify the characteristics of digital entrepreneurship as an extended form of entrepreneurship. Digital entrepreneurship in this study consists of innovativeness, risk-taking, pro-activeness, receptiveness, digital-thinking and collaborativeness. We then investigate the relationship between digital entrepreneurship and firm performance. To test the proposed research model, we collected data through using survey questionnaire from CEOs and executives of 115 companies. The test results confirm that digital entrepreneurship consists of proposed six components and influences organizational performance. Research methodology and findings are further discussed.