IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i2p415-d1562231.html
   My bibliography  Save this article

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

Author

Listed:
  • Sabrina Schork

    (Technische Hochschule Aschaffenburg—University of Applied Sciences, Economy and Law, Würzburger Straße 45, 63743 Aschaffenburg, Germany)

  • Dilan Özdemir-Kaluk

    (Technische Hochschule Aschaffenburg—University of Applied Sciences, Economy and Law, Würzburger Straße 45, 63743 Aschaffenburg, Germany)

  • Cudi Zerey

    (Technische Hochschule Aschaffenburg—University of Applied Sciences, Economy and Law, Würzburger Straße 45, 63743 Aschaffenburg, Germany)

Abstract

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.

Suggested Citation

  • Sabrina Schork & Dilan Özdemir-Kaluk & Cudi Zerey, 2025. "Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach," Sustainability, MDPI, vol. 17(2), pages 1-25, January.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:415-:d:1562231
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/2/415/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/2/415/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chenglei Xu & Shuxin Zhu & Boru Yang & Bin Miao & Yi Duan, 2023. "A Review of Policy Framework Research on Promoting Sustainable Transformation of Digital Innovation," Sustainability, MDPI, vol. 15(9), pages 1-26, April.
    2. Lu, Hui Ting & Li, Xue & Yuen, Kum Fai, 2023. "Digital transformation as an enabler of sustainability innovation and performance – Information processing and innovation ambidexterity perspectives," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    3. Su, Chi Wei & Yue, Peiwen & Hou, Xinmeng & Dördüncü, Hazar, 2023. "Sustainable development through digital innovation: A new era for natural resource extraction and trade," Resources Policy, Elsevier, vol. 85(PB).
    4. Guangping Xu & Guangyuan Hou & Jinshan Zhang, 2022. "Digital Sustainable Entrepreneurship: A Digital Capability Perspective through Digital Innovation Orientation for Social and Environmental Value Creation," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    5. Roberto Pasqualino & Melissa Demartini & Faezeh Bagheri, 2021. "Digital Transformation and Sustainable Oriented Innovation: A System Transition Model for Socio-Economic Scenario Analysis," Sustainability, MDPI, vol. 13(21), pages 1-34, October.
    6. Karolina Bähr & Alexander Fliaster, 2023. "The twofold transition: Framing digital innovations and incumbents' value propositions for sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 920-935, February.
    7. Holland, Claire & McCarthy, Adam & Ferri, Priscila & Shapira, Philip, 2024. "Innovation intermediaries at the convergence of digital technologies, sustainability, and governance: A case study of AI-enabled engineering biology," Technovation, Elsevier, vol. 129(C).
    8. Junjie Li & Guohui Zhan & Xin Dai & Meng Qi & Bangfan Liu, 2022. "Innovation and Optimization Logic of Grassroots Digital Governance in China under Digital Empowerment and Digital Sustainability," Sustainability, MDPI, vol. 14(24), pages 1-28, December.
    9. Drago? Tohãnean, , and & Alexandru Ilie Buzatu & Cristina-Andrada Baba & Bogdan Georgescu, 2020. "Business Model Innovation Through the Use of Digital Technologies: Managing Risks and Creating Sustainability," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 758-758, August.
    10. Young Won Park & Paul Hong, 2022. "A Research Framework for Sustainable Digital Innovation: Case Studies of Japanese Firms," Sustainability, MDPI, vol. 14(15), pages 1-13, July.
    11. Fei Li & Yang Zhao & Jaime Ortiz & Yan Chen, 2023. "How Does Digital Technology Innovation Affect the Internationalization Performance of Chinese Enterprises? The Moderating Effect of Sustainability Readiness," Sustainability, MDPI, vol. 15(14), pages 1-25, July.
    12. Qiang Xu & Qianqian Hu & Tachia Chin & Chen Chen & Yi Shi & Jianxin Xu, 2019. "How Supply Chain Integration Affects Innovation in a Digital Age: Moderating Effects of Sustainable Policy," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    13. Arpan Kumar Kar & Vigneswara Ilavarasan & M. P. Gupta & Marijn Janssen & Ravi Kothari, 2019. "Moving beyond Smart Cities: Digital Nations for Social Innovation & Sustainability," Information Systems Frontiers, Springer, vol. 21(3), pages 495-501, June.
    14. Ziyi Zhao & Yulu Yan, 2023. "The Role of Organizational Unlearning in Manufacturing Firms’ Sustainable Digital Innovation: The Mechanism of Strategic Flexibility and Organizational Slack," Sustainability, MDPI, vol. 15(13), pages 1-23, June.
    15. Segun Akinola & Arnesh Telukdarie, 2023. "Sustainable Digital Transformation in Healthcare: Advancing a Digital Vascular Health Innovation Solution," Sustainability, MDPI, vol. 15(13), pages 1-23, July.
    16. Gerard George & Ryan K. Merrill & Simon J. D. Schillebeeckx, 2021. "Digital Sustainability and Entrepreneurship: How Digital Innovations Are Helping Tackle Climate Change and Sustainable Development," Entrepreneurship Theory and Practice, , vol. 45(5), pages 999-1027, September.
    17. Yi Liang & Chenyu Zhao & Min-Jae Lee, 2023. "Institutional Pressures on Sustainability and Green Performance: The Mediating Role of Digital Business Model Innovation," Sustainability, MDPI, vol. 15(19), pages 1-14, September.
    18. Wei Yang & Qiuxia Chen & Qiuqi Guo & Xiaoting Huang, 2022. "Towards Sustainable Development: How Digitalization, Technological Innovation, and Green Economic Development Interact with Each Other," IJERPH, MDPI, vol. 19(19), pages 1-17, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Albérico Travassos Rosário & Joana Carmo Dias, 2023. "The New Digital Economy and Sustainability: Challenges and Opportunities," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    2. Cristina Nicolau & Eliza Nichifor & Daniel Munteanu & Oana Bărbulescu, 2022. "Decoding Business Potential for Digital Sustainable Entrepreneurship: What Romanian Entrepreneurs Think and Do for the Future," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    3. Teresa Riso & Carla Morrone, 2023. "To Align Technological Advancement and Ethical Conduct: An Analysis of the Relationship between Digital Technologies and Sustainable Decision-Making Processes," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    4. Dwivedi, Yogesh K. & Hughes, Laurie & Kar, Arpan Kumar & Baabdullah, Abdullah M. & Grover, Purva & Abbas, Roba & Andreini, Daniela & Abumoghli, Iyad & Barlette, Yves & Bunker, Deborah & Chandra Kruse,, 2022. "Climate change and COP26: Are digital technologies and information management part of the problem or the solution? An editorial reflection and call to action," International Journal of Information Management, Elsevier, vol. 63(C).
    5. Shuke Fu & Jiabei Liu & Jiali Tian & Jiachao Peng & Chuyue Wu, 2023. "Impact of Digital Economy on Energy Supply Chain Efficiency: Evidence from Chinese Energy Enterprises," Energies, MDPI, vol. 16(1), pages 1-21, January.
    6. Yan He & Zhaoshu Liu & Min-Jae Lee, 2024. "Navigating Sustainable Value Creation Through Digital Leadership Under Institutional Pressures: The Moderating Role of Environmental Turbulence," Sustainability, MDPI, vol. 16(21), pages 1-16, October.
    7. Chuanfeng Sun & Guihuang Jiang & Jingqiang Zhang, 2024. "An Analysis of Hotspots, Subject Structure, and Emerging Trends in Digital Governance Research," SAGE Open, , vol. 14(3), pages 21582440241, August.
    8. Junping Yang & Ruiqi Wu & Haochun Yang, 2023. "Digital Transformation and Enterprise Sustainability: The Moderating Role of Regional Virtual Agglomeration," Sustainability, MDPI, vol. 15(9), pages 1-21, May.
    9. Jinshan Zhang & Man Liu, 2024. "How to Leverage Digital Sustainability Orientation to Promote Environmentally Sustainable Practices of Manufacturing Enterprises in China," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    10. Sadiq, Muhammad & Nawaz, Muhammad Atif & Sharif, Arshian & Hanif, Sobia, 2024. "Bridging green supply chain practices and environmental performance in Chinese semiconductor sector: With the role of energy efficiency and green HRM," International Journal of Production Economics, Elsevier, vol. 277(C).
    11. Javed, Hasnain & Du, Jianguo & Iqbal, Shuja & Nassani, Abdelmohsen A. & Basheer, Muhammad Farhan, 2024. "The impact of mineral resource abundance on environmental degradation in ten mineral- rich countries: Do the green innovation and financial technology matter?," Resources Policy, Elsevier, vol. 90(C).
    12. Muhammad Farooq Islam & Ozge Can, 2024. "Integrating digital and sustainable entrepreneurship through business models: a bibliometric analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-18, December.
    13. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.
    14. Shunbin Zhong & Huafu Shen & Ziheng Niu & Yang Yu & Lin Pan & Yaojun Fan & Atif Jahanger, 2022. "Moving towards Environmental Sustainability: Can Digital Economy Reduce Environmental Degradation in China?," IJERPH, MDPI, vol. 19(23), pages 1-23, November.
    15. Shaobin, Guo & Ahmad, Khalil & Khan, Naqib Ullah, 2024. "Natural resources, geopolitical conflicts, and digital trade: Evidence from China," Resources Policy, Elsevier, vol. 90(C).
    16. Mohammad Soltani Delgosha & Tahereh Saheb & Nastaran Hajiheydari, 0. "Modelling the Asymmetrical Relationships between Digitalisation and Sustainable Competitiveness: A Cross-Country Configurational Analysis," Information Systems Frontiers, Springer, vol. 0, pages 1-21.
    17. Alterskye, Alex & Fuller, Ted & Caputo, Andrea, 2023. "Field dynamics as context – A multi-perspective combined analysis of the effects of context on entrepreneurship," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    18. Anna Jasińska-Biliczak, 2022. "Smart-City Citizen Engagement: The Answer to Energy Savings in an Economic Crisis?," Energies, MDPI, vol. 15(23), pages 1-15, November.
    19. Yi Liang & Jung-Mo Koo & Min-Jae Lee, 2024. "The Interplay of Environmental Dynamism, Digitalization Capability, Green Entrepreneurial Orientation, and Sustainable Performance," Sustainability, MDPI, vol. 16(17), pages 1-17, September.
    20. Marek Krok & Paweł Majewski & Wojciech P. Hunek & Tomasz Feliks, 2022. "Energy Optimization of the Continuous-Time Perfect Control Algorithm," Energies, MDPI, vol. 15(4), pages 1-13, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:415-:d:1562231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.