The Digital-Sustainability Ecosystem: A conceptual framework for digital transformation and sustainable innovation

PURPOSE: This study introduces the Digital-Sustainability Ecosystem, a conceptual framework to integrate digital transformation and sustainable innovation. It examines how emerging digital technologies, including artificial intelligence, blockchain, and the Internet of Things, drive sustainability transitions by serving as strategic enablers. Addressing a critical gap in the literature, this research focuses on the dynamic mechanisms and synergies that connect digital transformation with sustainable innovation within a complex ecosystem. METHODOLOGY: The study employs a systematic literature review (SLR) of 50 studies and a comparative analysis of 13 existing frameworks to identify and analyze key mechanisms that link digital transformation and sustainable innovation, culminating in the development of the Digital-Sustainability Ecosystem framework. FINDINGS: The study identifies five interconnected mechanisms: efficiency gains, dematerialization, circular economy enablement, innovation acceleration, and digital collaboration. These mechanisms illustrate the relationships between technological advancements and sustainability objectives while addressing synergies and tensions, such as the trade-offs between energy demands and environmental benefits. The Digital-Sustainability Ecosystem emphasizes multi-stakeholder collaboration, iterative feedback loops, and adaptable processes to address gaps in existing models, positioning digital transformation as a transformative force for systemic sustainability improvements. IMPLICATIONS: The Digital-Sustainability Ecosystem advances theoretical discourse by positioning sustainability as a systemic outcome of digital transformation, extending beyond traditional efficiency-focused models. It emphasizes organizational resilience and stakeholder collaboration as pivotal for achieving sustainability objectives. Practitioners can leverage AI, IoT, and blockchain to enhance resource optimization and foster sustainability-driven innovation ecosystems. Policymakers and organizations are encouraged to combine digital strategies with sustainability imperatives, emphasizing adaptive leadership, regulatory alignment, and multi-stakeholder engagement. ORIGINALITY AND VALUE: This study presents a conceptual framework that bridges theoretical and practical gaps in the literature by integrating foundational theories that associate digital transformation with sustainability imperatives while fostering innovation and competitive advantage. The framework sets the stage for future research, emphasizing potential applications in industry-specific contexts, cross-sectoral collaborations, and the evolving role of emerging technologies in sustainability transitions. By incorporating dynamic feedback loops and systemic adaptability, this framework establishes a foundation for advancing both academic inquiry and practical implementation. It offers guidance for exploring unanswered questions about scalability, policy integration, and multi-stakeholder engagement in the digital age.