RUNX2 acts as a transcription factor by binding to specific DNA sequences in the promoter regions of target genes, thereby regulating their transcription. It activates a set of genes essential for the maturation of osteoblasts and the production of bone matrix proteins such as collagen type I, osteopontin, and bone sialoprotein. Additionally, RUNX2 interacts with other signaling molecules and transcription factors to coordinate the complex process of bone formation.