How Does Digital Innovation Drive Corporate Sustainability? A Systematic Literature Review

Abstract

This study systematically reviews recent empirical evidence on the relationship between digital innovation and corporate sustainability. Using the Scopus database, the review identified 231 articles through the search string (“digital” OR “digital innovation” OR “digitalization”) AND “corporate sustainability”. After applying inclusion criteria covering publications from 2023 to 2026, English-language journal articles, open access availability, and quantitative empirical design, 49 articles were retained for synthesis. The findings show that digital innovation is conceptualized through multiple forms, including digital transformation, digital finance, artificial intelligence, digital accounting, supply chain digitalization, digital leadership, executives’ digital attention, and digital–green integration. Most studies indicate that digital innovation positively contributes to ESG performance, corporate sustainability performance, sustainable development performance, and sustainability efficiency. However, the relationship is not automatic or universally linear. Its effect depends on mediating mechanisms such as green innovation, operational efficiency, financing access, information transparency, supply chain coordination, resource orchestration, and governance improvement. The review also identifies important boundary conditions, including digital maturity, organizational capability, leadership support, digital infrastructure, environmental regulation, and institutional quality. This study contributes by organizing fragmented empirical evidence into an integrated thematic framework and highlighting future research directions for global scholars examining digital transformation, ESG practices, and sustainability-oriented corporate strategy worldwide.