Digital Transformation and Sustainable Performance in Chinese Manufacturing: A Systematic Review

This study systematically reviews literature published between 2022 and 2025 on digital transformation in China’s manufacturing sector, focusing on its impact on sustainable performance. This paper analyzed 52 Web of Science articles across four disciplines to identify critical success factors in digital transformation. Our findings reveal five key dimensions: digital capabilities, digital technology application, digital strategy, product value adding and information system analysis. The review highlights promising developments in circular energy systems, big data-driven sustainable performance, consumer empowerment and value co-creation, circular economy practices, sustainable consumption initiatives, and socially responsible business models. However, it also uncovers significant barriers, such as rising e-waste, increased energy use and carbon emissions, a widening digital divide, job insecurity, market monopolization, and data privacy risks that threaten sustainable development outcomes. To realize the sustainable performance potential of digital transformation, Chinese manufacturers must proactively address these challenges. By applying a rigorous methodology and offering a comprehensive synthesis of recent findings, this study contributes to digital management literature and advances understanding of how digital transformation strategies can enhance corporate sustainable performance in China’s manufacturing industry.