The Determinants of Digital Innovation; A Systematic Review

Abstract

Digital innovation has become a critical concern for organizations seeking to improve competitiveness, adaptability, service delivery, and value creation in increasingly digital environments. However, existing research on the determinants of digital innovation remains fragmented across different sectors, theoretical perspectives, and organizational contexts. This systematic review aims to synthesize existing literature on the determinants of digital innovation and identify the main technological, organizational, human, strategic, and contextual factors that influence digital innovation outcomes. A systematic review approach was adopted to examine 30 selected studies related to digital innovation, digital transformation, digital capabilities, organizational capabilities, leadership, culture, human capital, business model innovation, and performance outcomes. The studies were analyzed using a literature review matrix and thematic synthesis. The review process followed identification, screening, eligibility, and inclusion stages consistent with PRISMA 2020 logic. The findings show that digital innovation is shaped by multiple interacting determinants, including digital capabilities, technological capabilities, organizational capabilities, human capital, digital skills, leadership, organizational culture, agility, dynamic capabilities, and contextual conditions. The reviewed studies also indicate that digital innovation contributes to innovation performance, firm performance, competitive advantage, business model renewal, sustainable innovation, public-sector service transformation, and ecosystem development. Digital innovation should be understood as an integrated organizational process rather than a purely technological activity. Successful digital innovation requires alignment among technology, capabilities, people, strategy, culture, and context.