Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach

In recent years, organizations have increasingly turned to digital transformation (D) to drive innovation (I) and sustainability (S). However, the rapid growth of studies on this topic, particularly since 2019, has made it challenging to clearly define these concepts, operationalize their constructs, and understand their positive organizational impacts. This article addresses these gaps through a systematic literature review (SLR) that combines quantitative and qualitative analysis. This study begins with a comprehensive bibliometric analysis of 3099 articles published between 2010 and 2023 in the Scopus database containing the terms “digital,” “innovation,” and “sustainability” (or “sustainable”). It then covers a detailed qualitative review of 20 high-quality articles from VHB-JOURQUAL-C-ranked journals or higher. By employing an inductive–deductive approach, the authors identify consistent and conflicting definitions, diverse constructs for each D-I-S concept, and numerous positive organizational effects. This article provides a structured overview of existing D-I-S definitions and introduces a model to distinguish environmental, organizational, and solution levels. Additionally, it presents a visual framework of the direct and mediated positive effects of D-I-S in organizations. Overall, these insights underscore the critical role of digital transformation in advancing innovation and sustainability, offering valuable guidance for researchers and practitioners alike.