Digital innovation capabilities: a systematic review, synthesis and research agenda

In an era of rapid technological change, it is imperative for firms to develop dynamic capabilities that drive innovation and adaptation through digital means. Digital innovation capabilities (DICs) represent a crucial set of organizational competencies, enabling firms to sense digital opportunities, seize them through strategic and technological actions, and reconfigure operations to sustain innovation. Despite the growing body of studies on digital tools and practices, the foundational capabilities that support sustained digital innovation are still fragmented across disciplines and lack systematic theoretical integration. Drawing on a combination of bibliographic coupling analysis and systematic literature review, this study offers a comprehensive integration on the field of DICs. Grounded in the dynamic capabilities theory, we propose a process-oriented framework that covers five interrelated domains: digital agility, digital transformation capabilities, digital technology application capabilities, digital service innovation capabilities, and digital business model innovation capabilities. These domains align with the dynamic capabilities logic of sensing, seizing, and reconfiguring. This study contributes to the literature by clarifying the conceptual boundaries of DICs, elucidating their interrelationships, and providing a process-based understanding of how firms develop and deploy DICs in rapidly evolving digital environments. The framework provides both a solid theoretical foundation and a practical roadmap for advancing digital innovation research and guiding managerial actions.