Creating Sustainable Innovation Performance: A Systematic Review and Bibliometric Analysis

Abstract

In response to the growing interest in innovation performance within dynamic business landscapes, this study aims to fill the gap in comprehensive review studies by examining the factors influencing sustainable innovation performance. Employing a Systematic Review approach, this study elucidates the contributions of prior research and identifies key factors impacting sustainable innovation performance. Various software tools such as Publish/Perish, VOSviewer, and bibliometrics are utilized for the Systematic Review analysis. The research conducted searches in the Scopus scientific database, spanning articles from 1998 to 2023. The findings highlight four predominant themes: knowledge management, research and development, product innovation, and product development. This synthesis of literature provides valuable insights into the complex dynamics shaping sustainable innovation performance within evolving business contexts, facilitating further exploration and understanding in this research domain. This paper’s significance lies in its contribution to enhancing comprehension of the factors driving sustainable innovation performance, thereby aiding practitioners and scholars in navigating and leveraging innovation within contemporary business environments. It offers a foundation for the development of sustainable policies and practices in harnessing innovation to enhance business performance, addressing the ever-changing dynamics of the business environment effectively.

1. Introduction

The Oslo Manual defines innovation as the introduction of a new and significantly improved product (good or service), process, new marketing method, or new organizational method into business practices, workplace organizations, or external relations [1]. While the literature recognizes various types of innovation within firms (product/process, radical/incremental, technological/managerial, market pull/technology push, or competence-enhancing/competence-destroying), most empirical studies rely on product–process typology [2]. Innovation is the ability to apply creativity to solve problems, and innovation performance is a core component of human resource performance [3].

According to [4], innovation is a key determinant of company performance and outcomes. Innovation performance refers to innovations that help companies outperform their competitors and gain a competitive edge [5]. It involves achieving the intended goals of new innovations [6], encompassing the value, features, and quality of products offered by companies [7]. Companies pay significant attention to their innovative successes [8]. Ref. [9] argues that innovation performance is something new or renewed undertaken by a company or organization to add significant value, either directly or indirectly. It refers to the measurement or assessment of how effectively an organization can create, develop, and implement innovations, reflecting the extent to which innovative efforts have produced tangible results and positively contributed to the organization’s success and growth.

Innovation performance is a key element in the development of businesses, organizations, and even a country’s economy. The ability to create and implement innovations can provide a significant competitive advantage. Furthermore, sustainable innovation performance is a continuous process of understanding, exploring, and learning, which enables companies and business organizations to innovate new procedures, new markets, and new and improved products and services [10]. So, sustainable innovation performance is also defined as the result of innovation activities encompassing economic (e.g., financial benefits), environmental (e.g., energy consumption and pollution reduction), and social aspects (e.g., improved working conditions and safety) [11].

Understanding the factors that influence sustainable innovation performance is crucial as it can provide valuable guidance to business stakeholders, governments, and researchers in developing strategies, policies, and practices that support innovation growth. Therefore, research on the factors influencing sustainable innovation performance has become an increasingly relevant and important topic in the business and academic world. The innovation process within business organizations heavily relies on the availability of knowledge. Access to knowledge enhances innovation, which helps business organizations achieve valuable benefits, effectiveness, sustainability, growth, and economic prosperity [12].

Ref. [13] defines knowledge management as the flow and sharing of knowledge within an industry or firm. Studies have explored that knowledge management empowers firms to create modern methods to realize viable benefits, effectively acquire knowledge, and improve sustainable organizational innovation [14]. Research by [15] shows that knowledge management has a significant positive relationship with organizational learning, which in turn has a positive linkage to sustainable organizational innovation. Additionally, ref. [16] shows that sustainable innovation performance is influenced by open innovation.

Although innovation has been broadly defined and various types of innovation have been identified in the literature, empirical research still tends to be limited to product–process typology. Most studies overlook other aspects of innovation that can contribute to sustainable innovation performance, such as managerial methods, technology, and new markets. Moreover, there is still a lack of comprehensive understanding regarding the specific factors influencing sustainable innovation performance across different industry contexts. In the business context, sustainable innovation performance involves implementing new processes and products that enhance efficiency, reduce environmental impact, and create long-term economic value. Businesses aim to leverage innovation to gain a competitive advantage [17], improve operational sustainability, and meet consumer demands for more environmentally friendly products and services.

Furthermore, although there is recognition that knowledge management plays a crucial role in enhancing innovation performance, research directly linking knowledge management and sustainable innovation performance remains limited. The implications of knowledge in the context of economic, environmental, and social sustainability have also not been thoroughly explored. To further develop this research, a Systematic Review (SR) method can be employed to identify the latest factors related to innovation performance. The primary goal of a Systematic Review is to provide a comprehensive and objective overview of what is known and researched in a particular field. VOSviewer is one of the software tools that can be used for analysis using the SR method. VOSviewer can evaluate data from various sources, such as search engines, bibliographic databases, or information related to scientific publications. In addition to using VOSviewer (v1.6.20), analysis can also be performed using bibliometrics. Bibliometrics is a method useful for detailing and describing bibliographic data, including publications, citations, authors, and specific research areas.

This research aims to enrich the literature by providing a more comprehensive overview of the factors influencing sustainable innovation performance. For business practitioners, this research will offer valuable guidance on strategies and practices that can be implemented to enhance sustainable innovation performance. By identifying key factors influencing innovation success, this research can help organizations develop more effective policies to leverage knowledge and innovation to achieve competitive advantage and long-term sustainability. This research can also assist decision-makers in designing more targeted interventions to support innovation growth in various industry sectors.

By filling the gap in the literature and providing practical guidance, this research is expected to make a significant contribution to the development of theory and practice in the field of sustainable innovation performance. Through in-depth analysis using the Systematic Review method and tools like VOSviewer and bibliometrics, this research will offer deep insights into how organizations can more effectively manage innovation to achieve sustainability and economic growth.

2. Literature Review and Methods

2.1. Definition of “Sustainable Innovation Performance”

Innovation serves as the cornerstone for economic advancement and competitive edge [18]. It encompasses novel forms of products, services, processes, or concepts. Its significance to organizations lies in its ability to sustain competitiveness, address consumer demands, and foster fresh avenues for growth [19]. The term ‘innovation’ is employed to denote emerging products, services, processes, or technologies necessitating acceptance and eventual integration [20]. Innovation constitutes a pivotal element enabling the innovative process to engender new products, services, technologies, or concepts [21].

Innovation performance refers to something new or renewed that is undertaken by a company or organization with the aim of generating significant added value, either directly or indirectly [9]. Meanwhile, ref. [22] states that innovation performance represents the ability to transform innovation inputs into outputs, thereby converting innovative capabilities and efforts into implementation. Innovation performance stands as a key element in the development of businesses, organizations, and even a nation’s economy. The ability to create and implement innovation can provide a significant competitive advantage [22].

Furthermore, sustainable innovation is defined by [23] as “innovations that go beyond enhancing economic performance to also improve environmental and social outcomes, both in the short and long term, by generating positive social and environmental impacts”. Our interpretation of sustainable innovation performance refers to “the ability of an organization to consistently generate and implement innovative solutions while simultaneously considering and addressing environmental, social, and economic sustainability concerns”. This entails developing and implementing innovations that not only drive competitive advantage and organizational success but also contribute positively to long-term environmental and societal well-being.

Sustainable innovation performance encompasses various aspects, including the development of eco-friendly products and services, the adoption of renewable energy sources, the reduction of waste and carbon emissions, the promotion of social equity and inclusivity, and the establishment of ethical business practices. Organizations that prioritize sustainable innovation performance strive to balance economic profitability with environmental and social responsibility, thus fostering resilience and longevity in a rapidly changing world. Understanding the factors influencing sustainable innovation performance is crucial as it can offer valuable guidance to business stakeholders, governments, and researchers in developing strategies, policies, and practices that support innovation growth.

2.2. Research Questions

Research on the factors influencing sustainable innovation performance has become an increasingly relevant and significant topic in the business and academic world. The present study addresses the following research goals:

• To identify the dynamics of research literature production.
• To identify the most influential and prolific authors in the field of study.
• To identify the most influential work in the field of study.
• To identify the common theme of research flowing among researchers in the field of study.
• To determine the determinants of innovation research.

Through the investigation of the dynamics of research literature production, the identification of influential authors and seminal works, the exploration of common research themes, and the determination of innovation research determinants, this study endeavors to discern the fundamental factors that shape sustainable innovation performance.

2.3. Research Methodology

The examination of existing literature exposes gaps in the research within the field and aids researchers in delving deeper into previously unexplored areas. Academics utilize various methods for reviewing the literature, including Systematic Review, scoping review, meta-analysis, and weight analysis, to produce state-of-the-art literature reviews. In this study, a combination of Systematic Review (SR) and bibliometric analysis techniques was utilized to comprehensively survey the field of study. This approach collectively contributed to identifying the intellectual structure within the field.

This research was conducted in 2023, applying the Systematic Review (SR) method. Various software tools such as Publish or Perish, VOSviewer, and Bibliometrics were utilized in the analysis. Publish or Perish was used to evaluate literature related to the research topic, which focused on innovation performance. Meanwhile, VOSviewer was employed to analyze search results from various sources, bibliographic databases, or other data related to scholarly publications. Bibliometrics assisted in visualizing and analyzing bibliographic data to comprehend the relationships between publications, citations, authors, and specific research fields. Therefore, bibliometrics plays a crucial role in supporting decision-making in research development, strategic planning, and academic performance assessment.

The researchers conducted a search on the Scopus scientific database, which is one of the largest and most recognized scientific databases, providing access to various peer-reviewed journal articles [24]. In this study, the articles used span the last two decades, ranging from 1998 to 2023. The selection of this time period was applied to ensure the relevance and freshness of the literature data used in the research analysis.

The steps taken in this research using Scopus and RStudio are presented as follows:

(1)

Determine search keywords. In this case, it is “innovation performance”.

(2)

Search for the keyword “innovation performance” based on the article title, abstract, and keywords TITLE-ABS-KEY (“innovation performance”) on Scopus.

(3)

Refine the search results by activating the filter TITLE-ABS-KEY (“innovation performance”) AND (LIMIT-TO (OA, “all”)) AND (LIMIT-TO (PUBSTAGE, “final”)) AND (LIMIT-TO (SRCTYPE, “j”)) AND (LIMIT-TO (LANGUAGE, “English”)) AND (LIMIT-TO (SUBJAREA, “SOCI”) OR LIMIT-TO (SUBJAREA, “ENVI”)).

(4)

Save the search results in .bib file format.

(5)

Organize the data according to the research questions using RStudio.

(6)

Download and install the latest versions of RStudio and R (v4.3.3).

(7)

Open the RStudio application and enter the code below and RStudio will redirect to a new link.

    install.packages(“bibliometrix”)

    library(bibliometrix)

    biblioshiny()

(8)

Upload the saved file on that page.

(9)

Complete the data analysis: Data visualization and trend analysis are performed using the VOSviewer software.

3. Results and Discussion

3.1. Bibliometric Analysis

We utilized VOSviewer to visually represent bibliographic data, enabling us to examine the network relationships among various units of analysis. In our current research, we conducted several analyses including co-authorship, co-occurrence, bibliographic coupling, and co-citation analysis. VOSviewer was selected for its capability to generate maps from network, bibliographic, and textual data, as well as its flexibility in accommodating various file formats. The bibliographic information of the articles used for visualization in VOSviewer is stored in a .CSV file format. The primary information about innovation performance that is known from bibliometric analysis is shown below.

(a)

Timespan (Time Period): Bibliometric data on innovation performance in this research cover the period from 1998 to 2023, indicating that data analysis was conducted over a relatively long time span.

(b)

Sources: There are 281 sources used in this research, indicating that data were collected from various reference sources.

(c)

Documents: There are 830 documents or articles used in this research, including papers and other scholarly documents.

(d)

Annual Growth Rate (%): The annual growth rate is 16.12%, showing that the number of relevant articles for this research has significantly increased during the study period.

(e)

Authors: There are 1986 authors in the analyzed documents, indicating the diversity of authors contributing to this research topic.

(f)

Authors of Single-Author Docs: A total of 67 documents were written by a single author, demonstrating individual contributions to this research topic.

(g)

International Co-Authorship (International Collaboration): An international collaboration rate of 43.49% indicates that most articles involve authors from more than one country.

(h)

Co-Authors per Doc: An average of 3.02 authors are involved in each analyzed article, reflecting teamwork in scientific research.

(i)

Authors’ Keywords: There are 2239 keywords used by authors in research articles, providing insights into the most frequently identified topics by authors.

(j)

References: On average, only one reference is used in each document, which may indicate that these documents are more focused on primary data analysis or employ newer research approaches.

(k)

Document Average Age: The average age of documents is 4.69 years, indicating that the documents used in this analysis tend to be more recent.

(l)

Average Citations per Doc: An average of 47.4 citations are received by each document, indicating that these documents are recognized by other researchers in the scholarly literature.

Based on the bibliometric analysis above, information about the data sources used in the research, the growth of research over a specific period, author characteristics, and other relevant aspects related to this research can be obtained. Each statement in this research provides significant information about the research’s contribution to the studied topic. By providing detailed statements in this research, it is hoped that we will aid in understanding the research results and their relevance in a broader context.

3.1.1. The Dynamics of Research Literature Production

In this subsection, we will discuss the dynamics of research literature production on sustainable innovation performance literature, particularly to address RQ1.

The graphical representation in Figure 1 explains the yearly scientific output within the domain of innovation performance. This encompasses the collective scholarly endeavors encompassing publications and research endeavors by various entities such as individuals, groups, and institutions throughout specific years. Notably, the graph illustrates a discernible upward trajectory in scientific output from 2008 to 2020, indicating a progressive inclination towards research in innovation performance during this period.

Conversely, the years spanning from 2021 to 2023 exhibit a fluctuating pattern, characterized by alternating peaks and valleys. Such fluctuations hint at potential shifts in research priorities, methodological approaches, or external influences impacting the scholarly discourse surrounding innovation performance during these years. This variability underscores the nuanced nature of scientific inquiry and the multifaceted factors that can influence research output over time.

Furthermore, the pinnacle of scientific productivity observed in 2022, marked by the publication of 106 articles, accentuates the significance of this year as a focal point in the scholarly exploration of innovation performance. This surge in publications likely reflects intensified scholarly interest or significant developments within the field that spurred heightened research activity.

Conversely, the absence of published articles on innovation performance in 1999 serves as a notable point of contrast, highlighting the evolution of research priorities and the emergence of innovation performance as a salient subject of scholarly inquiry over time.

In conclusion, the graphical depiction of annual scientific production related to innovation performance unveils a dynamic landscape characterized by both steady growth and intermittent fluctuations. Understanding the underlying drivers behind these trends is imperative for gaining a comprehensive insight into the evolving research landscape within this domain and identifying avenues for future scholarly exploration and advancement.

3.1.2. The Most Influential Authors

In this subsection, we will delve into identifying the most influential and prolific authors in the field of study, addressing RQ2. Figure 2 is a graph depicting the number of research publications by each author based on their relevance to the theme of innovation performance.

Figure 2 offers insights into the prolific authors contributing to the discourse surrounding the research theme, with a focus on their publication output. The color gradient within the displayed graph denotes the volume of publications attributed to each author, with darker shades of blue indicating a higher number of published documents and greater relevance to the research theme.

Of particular note are the top ten authors identified in the dataset: Li J, Roper S, Kianto A, Love JH, Wang C, Wang Y, Arvanitis S, Lokshin B, Grimpe C, Belderbos R., Li J, and Roper S emerge as the most prolific contributors, each having authored a total of 10 articles, as evidenced by the prominently taller dark blue bars associated with their names. This prominence underscores their significant relevance to the thematic discussions permeating the journals. Following closely behind, Love JH, Wang C, Wang Y, and Arvanitis S occupy the second position, boasting a combined total of nine articles each. It is noteworthy that these authors hail from diverse geographic locations, including China, the United Kingdom, Spain, Italy, the Netherlands, Germany, the USA, Sweden, and Finland, reflecting the global reach and interdisciplinary nature of research pertaining to innovation performance.

The distribution of authors across various countries suggests a rich tapestry of perspectives and expertise contributing to the discourse on innovation performance. This diversity likely enriches the scholarly dialogue by incorporating varied insights and methodologies from different cultural and institutional contexts.

In summary, the delineation of prolific authors within the dataset sheds light on the key contributors shaping the scholarly landscape surrounding innovation performance. Understanding the varied perspectives and geographical distribution of these authors is instrumental in appreciating the multifaceted nature of research within this domain and identifying potential areas for collaboration and further inquiry.

3.1.3. The Most Influential Works

This section aims to pinpoint the most influential work within the scope of this study, addressing RQ3. Figure 3 is a graph showing the most globally cited documents. The most globally cited documents refer to documents or academic works that have been widely cited worldwide.

Figure 3 underscores the pivotal role of globally cited documents in shaping and advancing scientific knowledge across diverse fields of study. These documents, which encompass scientific research, papers, articles, books, and other scholarly works, serve as foundational pillars within the academic community, with their impact reverberating across various countries and disciplines.

A striking observation gleaned from the figure is the considerable contrast between the top two positions in terms of citation counts. Leading the pack is Laursen K’s 2006 publication in the Strategic Management Journal, boasting an impressive total of 4032 citations. This document evidently commands significant attention and influence within the scholarly community, indicative of its seminal contributions to the field of strategic management.

In stark contrast, occupying the second position is Han JK’s 1998 publication in the Journal of Marketing, with a total of 1698 citations. While still noteworthy, the disparity in citation counts between the first and second positions underscores the substantial impact and recognition garnered by Laursen K’s work compared to Han JK’s.

The disparity in citation counts between these two documents highlights the varying degrees of influence and significance attributed to scholarly works within the academic landscape. Laursen K’s publication stands out as a beacon of excellence and a touchstone for subsequent research endeavors, attesting to its enduring relevance and impact within scholarly discourse.

Moreover, the prominence of these globally cited documents underscores the interconnected nature of scientific knowledge dissemination, transcending geographical and disciplinary boundaries. By serving as reference points for researchers worldwide, these documents facilitate the exchange of ideas, the advancement of knowledge, and the cultivation of intellectual discourse on a global scale.

In conclusion, the disparity in citation counts between the top-ranked documents underscores the significance of globally cited works in driving forward scientific inquiry and understanding. By elucidating key insights and fostering scholarly dialogue, these documents catalyze innovation and progress within their respective fields, thereby enriching the academic landscape and contributing to the collective advancement of human knowledge.

3.1.4. The Common Theme of Research about Innovation Performance

The focus of this subsection will be on identifying the common theme of research prevalent among researchers in the field of study, addressing RQ4. Figure 4 shows the most relevant words. The graph illustrates a list of the most frequently used keywords related to the research topic.

The visual representation depicted in Figure 4 provides a comprehensive insight into the frequency and relevance of keywords associated with the research topic. Utilizing a color gradient, wherein darker shades of blue denote higher frequency and relevance, the graph offers a nuanced understanding of the prevalent themes and concepts within scholarly discourse.

At the forefront, the keyword “innovation performance” emerges as the most prominently featured term, with a notable total of 147 occurrences, depicted by its distinctive dark blue hue. This prevalence underscores the centrality of innovation performance as a focal point of scholarly inquiry and underscores its significance within the research landscape.

Closely trailing behind, the keyword “innovation” commands considerable attention, appearing 144 times and also represented in a dark blue shade. The frequency of this term highlights the overarching importance of innovation as a fundamental driver of organizational success, economic growth, and societal advancement, thus affirming its status as a core theme within the research domain.

The prominence of these keywords underscores their pivotal role in shaping scholarly discourse and elucidating key insights within the realm of innovation research. By capturing the essence of recurring themes and concepts, these keywords serve as navigational signposts for researchers, facilitating the identification of pertinent literature and the exploration of interconnected ideas.

Moreover, the visual depiction of keyword frequency offers valuable insights into the evolving trends and focal points within the research landscape. The prominence of “innovation performance” and “innovation” suggests a concerted effort among scholars to delve deeper into understanding the dynamics, determinants, and outcomes of innovation within organizational contexts.

The most common theme can also be displayed by a thematic map. Based on Figure 5, it can be observed that there are several themes related to innovation performance. These themes include knowledge management, research and development, product innovation, and product development.

3.2. Systematic Review Results

In the results of bibliometric analysis, several variables that have a significant impact on sustainable innovation performance have been identified. Some of these variables include knowledge management, research and development, product innovation, and product development. In the context of sustainable innovation performance, there are several promising topics for further research in the future. Visualizing the results in various images provides valuable guidance for researchers in identifying topics with the potential for new contributions in the domain of innovation performance (see Figure 6).

We detail the results of this analysis in Section 3.3 so that the findings can be discussed in detail.

3.3. Discussion: Systematic Review Results about Factors Affecting Sustainable Innovation Performance

3.3.1. Knowledge Management

Ref. [35] analyzed the causal relationship between five dimensions of knowledge management—knowledge identification, organizational knowledge, knowledge storage, knowledge dissemination, and knowledge application—and organizational innovation variables in companies. The results of this study indicated a significant positive relationship between the overall knowledge management construct and the level of organizational innovation in companies. Furthermore, the dimensions of organizational knowledge, knowledge storage, and knowledge application showed a positive and significant correlation with organizational innovation. Conversely, knowledge identification and knowledge dissemination did not exhibit a significant correlation. Thus, the implementation of a comprehensive knowledge management system has proven to substantially enhance the performance and innovative capabilities of organizations.

Research conducted by [36] in service companies specifically examined the influence of implementing knowledge management on improving the innovation performance of the firm. The study found that knowledge management activities such as knowledge generation, knowledge storage, and knowledge application positively and significantly contribute to enhancing product, service, and business model innovations produced by the company (firm innovation). Furthermore, knowledge application acts as a central mechanism mediating the impact of other knowledge management activities on the improvement of a firm’s innovation. In other words, effective knowledge management implementation, particularly through the application of knowledge to new products and services, directly impacts the increase in the innovation performance capabilities of a company. Thus, this research indicates a close positive relationship between the effectiveness of knowledge management implementation and the improvement of a company’s innovation performance.

Ref. [37] investigated the possible association between customer knowledge management, innovation quality, and firm performance. The results showed that knowledge management effectively mediates the relationship between knowledge-oriented leadership and innovation quality. Moreover, innovation quality also proved to mediate the relationship between knowledge management and firm performance. These findings provide empirical evidence that the effective implementation of customer knowledge management can enhance innovation quality, which, in turn, impacts the improvement of overall firm performance. Hence, a clear relationship exists between knowledge management and innovation performance, where knowledge management plays a key role in enhancing the quantity and quality of innovations that contribute to overall performance.

Ref. [38] aimed to investigate the relationship between knowledge management and performance through the role of innovative behavior. The results showed a significant relationship between knowledge management, innovative behavior, and performance. Additionally, the study confirmed that knowledge management fully mediates the relationship between innovative behavior and performance. In other words, effective implementation and management of knowledge management can enhance innovative behavior, which, in turn, positively impacts the improvement of the organization’s performance. Overall, this research indicates that knowledge management and innovative behavior play a key role in determining the level of innovation performance in an organization. The more effective the implemented knowledge management, the higher the level of innovative behavior and innovative performance.

In line with the research conducted by [39], which demonstrated that knowledge management plays a crucial role as a mediator connecting various dimensions of innovation orientation—strategic, technological, organizational culture, and market—with the improvement of organizational or company performance. In other words, the implementation of knowledge management in an organization can strengthen the positive influence of innovation orientation on the organization’s innovation performance. Therefore, it can be concluded that the effective implementation of knowledge management approaches and practices is essential to support organizational efforts to enhance innovative capabilities and performance.

Based on the findings of [40], knowledge management implemented through open innovation has proven to have a positive impact on improving innovation performance. This is evidenced by the finding that the performance of product innovation is highly dependent on the implementation of innovation. Entrepreneurial orientation alone was identified as inadequate without effective knowledge management strategies to optimize innovation performance. Therefore, it is important for organizations to implement and integrate knowledge management approaches to remain competitive and sustainably innovate by producing new products needed in the market.

Overall, the research results from [36,37,38,39,40] highlight the importance of knowledge management in enhancing the innovation performance of an organization. These findings demonstrate that the effective implementation of knowledge management, including aspects such as knowledge generation, storage, and application, has a positive impact on product, service, and business model innovations. Knowledge management not only functions as an independent variable but also acts as a mediator, strengthening the relationships of other factors, such as innovation orientation, innovative behavior, and knowledge-oriented leadership, with organizational innovative performance. The synergy between knowledge management and innovation, especially in the context of customer knowledge management, emphasizes that improving the effectiveness of knowledge management can enhance innovation quality, ultimately contributing to overall performance improvement. Therefore, careful implementation and management of knowledge management become key to organizations wishing to remain competitive and innovate continuously.

3.3.2. Research and Development

Although R&D is often considered the main engine for creating sustainable innovation and climate transition, ref. [41] presents a sustainable pathway model that integrates investment, talent, and learning institutions into one framework, aiming to enhance growth and innovative performance. This study delves into current R&D investment strategies to create a sustainable innovation system that can deliver the promised impact since the inception of the R&D concept in the 1960s. Meanwhile, ref. [42] presents that a leap in R&D investment significantly impacts company performance and innovation. By increasing R&D, heavily polluting enterprises can develop green technologies that enhance efficiency and competitiveness. Additionally, balancing exploratory and exploitative innovation, strengthened by R&D investment, maximizes innovation benefits and overall company performance. The strategic flexibility resulting from increased R&D allows for more efficient resource allocation, contributing to improved innovation and operational performance.

Furthermore, ref. [43]’s findings on the Chinese industry indicate that R&D investment has a significant impact on innovation performance, with companies allocating larger resources to R&D tending to show higher patent intensity, illustrating a positive correlation between R&D investment, innovation, and company productivity. Finally, ref. [44] underscores the importance of collaboration through R&D in enhancing competitiveness, although it does not directly detail the impact of R&D on innovation performance. Thus, the overall findings suggest that effective and targeted R&D investment can be a key catalyst for achieving innovative performance and sustainable improvement in innovation performance across various industrial sectors.

3.3.3. Product Innovation

In the study by [45], green product innovation, which is the implementation of the product innovation concept, significantly influences the improvement of innovation performance in manufacturing companies. The higher the capability of manufacturing companies in producing innovative environmentally friendly products, the higher the innovation performance of the company. Innovation performance here is measured not only in terms of sustainability but also from the perspective of new product growth, market share, and other business aspects. In other words, efforts to enhance product innovation through the development and launch of innovative green products prove to be a catalyst for overall improvement in innovation performance in the manufacturing industry in Pakistan.

In the research by [46], there is confirmation of a positive correlation between product innovation development activities and the level of successfully implemented innovations by companies. The higher the organization’s intensity in executing research and experimentation activities to create new flagship products, the greater their chances of success in marketing the latest products. Additionally, knowledge transfer among industry players, the implementation of cutting-edge technology, and the availability of financing are also identified as contributing to the improvement of product innovation capacity. In conclusion, the productivity of organizations in initiating and executing product development and product innovation schemes confirms its positive contribution to achieving innovation performance comprehensively.

Based on the research conducted by [47], product innovation has been proven to have a significant impact on innovation performance. This study shows that companies actively developing new products can enhance their market competitiveness. Product innovation helps companies respond to evolving consumer needs and create added value through the introduction of unique and relevant products. Additionally, product innovation drives operational efficiency by introducing more effective and sustainable production processes. Product innovation is not only crucial for the survival of a company but also a key driver in achieving competitive advantage and long-term success in a competitive market. Thus, product innovation and innovation performance have a synergistic relationship, reinforcing each other.

Ref. [48] indicates that product innovation capabilities have a positive impact on increasing the competitive advantage of start-ups. Furthermore, the improvement in competitive advantage obtained has been proven to enhance the international performance of start-ups. Therefore, the better the product innovation capabilities possessed by a start-up, marked by the quantity and quality of innovative products produced, the more it will enhance the competitive advantage and innovation performance of the start-up. Thus, product innovation contributes a significant positive influence on improving the innovation performance of start-ups.

Overall, the research findings in the following years provide evidence that product innovation, especially related to sustainability and the development of new products, plays a crucial role in improving innovation performance in companies. From focusing on green products with [45] in Pakistan to enhancing the competitive advantage of international start-ups with [48], these studies indicate that the capability of product innovation can have a positive impact on the innovative performance and competitiveness of companies. The application of a sustainable pathway model [41] also highlights the importance of investment strategies in research and development (R&D) to create a sustainable innovation system. Thus, investment and focus on product innovation have the potential to be a key catalyst in achieving sustained improvements in innovation performance across various industrial sectors.

3.3.4. Product Development

Ref. [49] highlights sustainable product development challenges as a top priority in improving organizational performance. This study indicates that sustainable product development has a positive and significant impact on enhancing organizational performance and innovation, especially in the context of the automotive industry in Pakistan. In line with these findings, [50] demonstrates that product development activities have a positive and significant influence on improving innovation performance in organizations. The more new products successfully developed through product development, the higher the level of innovation and innovation performance, reflected in the success and profitability of new products.

Ref. [51] states that there is a positive influence of product development on innovation performance. Balanced productivity in product development between exploiting existing knowledge and exploring new knowledge, facilitated through unlearning practices, can significantly enhance innovation. The relationship between unlearning and improved NPD performance occurs through ambidextrous innovation. Ref. [52] found that weak product development practices negatively impact the innovation performance of new financial products and services. Good product development practices become crucial for generating innovations that can be widely adopted and used by the target market. The authors of [53] propose a hybrid product development method that has proven to have a positive influence on the sustained improvement of company performance and innovation capabilities. The identification and exploration process of misalignments at each stage of physical product development can provide in-depth insights for companies and enhance their ability to manage misalignments, maximizing the innovative potential of these misalignments.

Ref. [54] shows that green product development, as a manifestation of product development, has a significant positive impact on improving the innovation performance of companies. Efforts to intensify green product development by emphasizing aspects of green creativity, transformational leadership, and other green innovations prove to be triggers for a comprehensive boost in innovation performance. Focusing on the relationship between product innovation capabilities and competitive advantage, ref. [48] demonstrates that the better the product innovation capabilities of a start-up, the higher the competitive advantage and innovation performance of that start-up.

Ref. [46] confirms a positive correlation between product innovation development activities and the level of successfully implemented innovations by companies. The systematic process of identifying and exploring misalignments at each stage of product development has been proven to enhance the innovation capacity of products. Ref. [45] proves that green product innovation has a significantly positive impact on the improvement of innovation performance in manufacturing companies. Efforts to enhance product innovation through the development and launch of innovative green products prove to be a catalyst for the improvement of innovation performance.

The conclusion from these various studies indicates that product development, particularly in the context of product innovation, plays a crucial role in enhancing overall innovation performance in companies. Whether through the development of new products, green product development, or the integration of hybrid methods, productive and innovative efforts in product development can be key factors in achieving improved innovation performance and sustainability for companies.

4. Implications and Limitations

4.1. Limitations

This study has several limitations. First, the reliance solely on articles from the Scopus database might exclude relevant research available in other databases such as Web of Science, Google Scholar, or industry-specific journals. Additionally, the time frame of the articles, ranging from 1998 to 2023, while extensive, may miss the most recent developments or emerging trends not yet published or indexed. There is also a potential language bias, as the analysis might favor English-language publications, potentially overlooking significant contributions from non-English research. Moreover, the identification and categorization of themes such as knowledge management, research and development, product innovation, and product development involve a degree of subjectivity, which could influence the findings. Lastly, the specific software tools used, including Publish or Perish version 8 and VOSviewer version 1.6.20, have inherent limitations in their algorithms and data processing capabilities, potentially affecting the analysis outcomes.

4.2. Implications

The practical implications of this research, which offer valuable insights, can guide decision-making for managers and practitioners regarding investments in knowledge management, R&D, product innovation, and product development aimed at bolstering sustainable innovation performance. Organizations can leverage the identified key factors to inform their strategic planning endeavors, ensuring a concentrated focus on aspects that significantly influence sustainable innovation. Furthermore, gaining an understanding of the pivotal factors shaping sustainable innovation can facilitate more efficient resource allocation, channeling endeavors and investments towards areas that yield the greatest value. Policy-makers stand to gain from these insights as well, utilizing them to foster conducive environments that promote sustainable innovation practices across diverse industries.

From a theoretical perspective, this study provides a comprehensive synthesis of the existing literature, offering a solid foundation for future research to build upon and explore new dimensions of sustainable innovation performance. By identifying common themes across various studies, this research bridges gaps between different disciplines, promoting a more integrated understanding of sustainable innovation. The findings contribute to the development of new theories or the refinement of existing ones related to sustainable innovation performance, knowledge management, and product development. Furthermore, this study highlights gaps in the current literature, directing future researchers to unexplored or underexplored areas, thus advancing the academic discourse on sustainable innovation.

5. Conclusions and Future Research Directions

This paper’s novelty lies in its thorough review of the literature, data analysis, and thematic insights, which together offer strong evidence for the vital importance of sustainable innovation performance and its determinants. Based on the analysis results using the Systematic Review (SR) method, several significant pieces of information were obtained. Initially, the analysis identified ten authors who are included in the most relevant data sources: Li J, Roper S, Kianto A, Love JH, Wang C, Wang Y, Arvanitis S, Lokshin B, Grimpe C, and Belderbos R. Among these, Li J and Roper S emerged as the most productive authors, each contributing a total of ten published articles.

Subsequently, this study highlighted that several countries have consistently published research related to the theme of sustainable innovation year by year. These countries include China, Italy, Spain, the United Kingdom, and the USA, indicating a strong global interest and contribution to this research area. Furthermore, Laursen K’s 2006 article in the Strategic Management Journal was identified as the most frequently cited scholarly work, with a total of 4032 citations. The second most cited article is by Han JK from 1998, published in the Journal of Marketing, with 1698 citations. These citations underscore the significant impact and recognition of these works within the academic community.

Moreover, the thematic evolution from 1998 to 2023 indicates that certain themes have been widely utilized. The four most prominent themes identified are knowledge management, research and development, product innovation, and product development. These themes have been central to the discourse on sustainable innovation over the past two decades. Lastly, the bibliometric analysis, literature review, and findings from the analyzed empirical research provide strong evidence that research and development (R&D), knowledge management, product innovation, and product development are crucial for enhancing sustainable innovation performance at both organizational and industrial levels. R&D is identified as the main engine driving sustainable innovation. Knowledge management is shown to enhance innovative behavior and overall innovation capacity. Additionally, product innovation and product development contribute significantly to the creation of new and innovative products and services.

Building upon the insights gleaned from this comprehensive Systematic Review, several avenues for future research emerge. First, future research should consider longitudinal studies to examine how the dynamics of sustainable innovation performance evolve over time. Such studies could offer deeper insights into the long-term effects of strategic investments in innovation and the sustainability of these initiatives.

Another promising direction is to integrate qualitative research methods such as case studies or interviews with industry experts, which could enrich the findings from quantitative Systematic Reviews. This mixed-methods approach would allow for a more comprehensive exploration of the underlying mechanisms and contextual nuances influencing sustainable innovation.