Digital Transformation and Sustainability in Developing Economies: How Industry 4.0 Drives Green Practices: A Systematic Literature Review

In the context of the rapid physical pace of digitalization and the emergence of an environmental agenda, the embrace of Industry 4.0 technologies within sustainability frameworks around the globe is in an accelerated state. This is especially true in developing economies, which are looking into how these advances in technology (artificial intelligence (AI), Internet of Things (IoT), Blockchain, and Big Data) propel green transitions and address environmental challenges. The present research involves a systematic literature review of the existing literature that reviews the intersections between digital transformation and environmental sustainability with meaning in developing contexts. Through the Systematic Literature Review (SLR) approach, we reviewed the peer reviewed articles obtained from Scopus, Web of Science, and ScienceDirect databases, based on the PRISMA framework for article selection The review frames the literature, limited to 2010-2023, and synthesizes to structure around the themes of adoption, barriers to implementation, sectoral considerations, and policy considerations. The review indicates that Industry 4.0 technologies present a significant opportunity for improved energy efficiency, waste reduction, and green innovation, but their uptake is limited by infrastructure, availability of digital skills, and weak policy support in less developed contexts. In contrast, enablers include cross-sectoral collaboration, institutional support, and ESG frameworks. Numerous opportunities for application exist including, but not limited to, manufacturing, energy, agriculture, and logistics. The review provides a contribution to knowledge for academia by bringing together otherwise fragmented knowledge and offering a conceptual platform to guide future research. Policymakers and practitioners will find this piece useful in adding structure and direction to emerging digital sustainability strategies. Overall, the review reinforces the necessity for local and inclusive approaches to realise the transformative opportunities Industry 4.0 can present for sustainable development.