Integrating Innovation Capability, Knowledge Management, and Digital Leadership for Organizational Sustainability: A Systematic Literature Review

Authors

  • Temi Delizar Hudoyo Mahasiswa Fakultas Ekonomi dan Bisnis, Universitas Bhayangkara Jakarta Raya
  • Supardi Tahir Dosen Fakultas Ekonomi dan Bisnis, Universitas Bhayangkara Jakarta Raya

DOI:

https://doi.org/10.38035/dijdbm.v7i4.7147

Keywords:

Innovation Capability, Knowledge Management, Digital Leadership, Organizational Sustainability, Dynamic Capability, Systematic Literature Review

Abstract

Organizational Sustainability has become a strategic priority for organizations seeking long-term competitiveness amid rapid digital transformation and increasing environmental and social challenges. Although Innovation Capability, Knowledge Management, and Digital Leadership are recognized as critical organizational capabilities supporting sustainable performance, previous studies have predominantly examined these capabilities independently. Consequently, limited understanding exists regarding their integrated contribution to Organizational Sustainability.This study systematically reviews the existing literature on the relationships among Innovation Capability, Knowledge Management, Digital Leadership, and Organizational Sustainability using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA 2020) guidelines. A total of twenty-four peer-reviewed studies were selected and analyzed through qualitative thematic synthesis to identify dominant research themes, theoretical perspectives, empirical findings, and research gaps. The review indicates that Innovation Capability strengthens organizations' ability to develop sustainable innovations, Knowledge Management facilitates organizational learning and knowledge integration, and Digital Leadership enables strategic digital transformation that supports long-term sustainability. However, the literature remains fragmented because these capabilities are rarely examined within a unified framework. This study proposes an integrated capability-based perspective that combines these three organizational capabilities to explain Organizational Sustainability, while offering theoretical insights, managerial implications, and directions for future research.

References

Javed, H., Du, J., & Islam, M. F. (2025). Unpacking organizational capabilities and green innovation for sustainable performance: The role of environmental regulations in manufacturing industry. Journal of Cleaner Production, 507, 145453. https://doi.org/10.1016/j.jclepro.2025.145453

Orchestrating capabilities, organizational dimensions and determinants in the pursuit of green product innovation. (2021). Journal of Cleaner Production, 313, 127873. https://doi.org/10.1016/j.jclepro.2021.127873

Gohr, C. F., & Rodrigues, B. C. B. (2025). Dynamic Capabilities as Enablers for Sustainability-Oriented Innovation: A Case Study in a Footwear Industry. Business Strategy and the Environment, 34, 3114–3140. https://doi.org/10.1002/bse.4141

Harsanto, B., Kumar, N., & Michaelides, R. (2024). Sustainability-oriented innovation in manufacturing firms: Implementation and evaluation framework. Business Strategy and the Environment, 33(6), 5086–5108. https://doi.org/10.1002/bse.3740

Bhadra, K. V., et al. (2024). Evolution of dynamic capabilities for business sustainability performance: Evidence from the Indian manufacturing sector. Business Strategy and the Environment. https://doi.org/10.1002/bse.3767

Ortiz-Avram, D., et al. (2024). Dynamic capabilities for sustainability: Toward a typology based on dimensions of sustainability-oriented innovation and stakeholder integration. Business Strategy and the Environment. https://doi.org/10.1002/bse.3630

Mehrabi, A., et al. (2025). Microfoundations of dynamic capabilities enabling scaling pathways of sustainability-oriented innovation business models. Business Strategy and the Environment. https://doi.org/10.1002/bse.4004

The innovation capability equation: A systematic review of global determinants of SMEs' success. (2025). Journal of Innovation & Knowledge.

Wang, Y., & Zhang, X. (2025). Enhancing SMEs' sustainable innovation and performance through digital transformation. Socio-Economic Planning Sciences.

Chopra, M., Saini, N., Kumar, S., Varma, A., Mangla, S. K., & Lim, W. M. (2021). Past, present, and future of knowledge management for business sustainability. Journal of Cleaner Production, 328, 129592. https://doi.org/10.1016/j.jclepro.2021.129592

Baquero, A. (2025). Transforming Organizational Readiness into Green Innovation: The Crucial Roles of Green Knowledge Management and Environmental Culture. Business Strategy and the Environment, 34(5), 6078–6094. https://doi.org/10.1002/bse.4289

Chen, Y., Huang, X., & Zhou, L. (2025). Knowledge management capability and sustainable business model innovation. Sustainability, 17(15), 6714. https://doi.org/10.3390/su17156714

Singh, S. K., Del Giudice, M., Chierici, R., & Graziano, D. (2022). Green innovation and environmental performance: The role of knowledge management capability. Technological Forecasting and Social Change, 181, 121785. https://doi.org/10.1016/j.techfore.2022.121785

Abbas, J., Kumari, K., & Saudagar, T. (2023). Knowledge management capability, organizational learning, and sustainable organizational performance. Journal of Knowledge Management. https://doi.org/10.1108/JKM-08-2022-0634

Al-Husain, A., et al. (2025). Digital dynamic capability, green knowledge management, and sustainability performance. Scientific Reports, 15, Article 4912. https://doi.org/10.1038/s41598-025-04912-6

Wang, C., & Ahmed, P. K. (2023). Knowledge integration capability and organizational sustainability. Journal of Business Research, 164, 113955. https://doi.org/10.1016/j.jbusres.2023.113955

García-Morales, V. J., Martín-Rojas, R., & Lardón-López, M. E. (2023). Knowledge management, digital transformation, and organizational sustainability. Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2023.122821

Zada, M., Zada, S., Dhar, B. K., Ping, C., & Sarkar, S. (2025). Digital Leadership and Sustainable Development: Enhancing Firm Sustainability Through Green Innovation and Top Management Innovativeness. Sustainable Development, 33(5), 6704–6716. https://doi.org/10.1002/sd.3488

Cheng, Z., Jin, X., & Kwak, W. J. (2025). Using the new positive aspect of digital leadership to improve organizational sustainability: Testing moderated mediation model. Acta Psychologica, 255, 104963. https://doi.org/10.1016/j.actpsy.2025.104963

How does digital leadership improve organizational sustainability: Theory and evidence. Journal of Cleaner Production, 434, 140148. https://doi.org/10.1016/j.jclepro.2023.140148

Digital transformation as the driving force for sustainable business performance: A moderated mediation model of market-driven business model innovation and digital leadership capabilities. Heliyon, 10(8), e29509. https://doi.org/10.1016/j.heliyon.2024.e29509

Lu, Z., Ma, M., Yang, Y., et al. (2024). The effectiveness of digital leadership in promoting organisational sustainability: A mediating role of digital leadership capability. Journal of Infrastructure Policy and Development, 8(15). https://doi.org/10.24294/jipd9550

Cuevas-Vargas, H. (2025). Linking Transformational Leadership to Sustainability Outcomes: The Mediating Roles of Digital Transformation and Innovation. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.70020

Laradi, S., & Elfekair, A. (2024). Understanding sustainable outcomes in the digital age: The vital role of digital leadership in leveraging the impact of green innovations. Uncertain Supply Chain Management.

The role of leadership in sustainable digital transformation of the organization. Sustainable Futures, 10, 101130. https://doi.org/10.1016/j.sftr.2025.101130

Downloads

Published

2026-07-24