Transforming IT into innovation: A bibliometric and systematic literature review within the TOE framework

In the context of the accelerating digital transformation, Information Technology (IT) capabilities have become a core driver for firms to achieve innovation performance. Based on the TOE (Technology–Organization–Environment) theoretical framework, this study employs bibliometric and content analysis methods to systematically review and empirically integrate 298 high-quality English articles from the Web of Science Core Collection published between 2016 and 2025. The aim is to uncover the multi-dimensional collaborative mechanisms through which IT capabilities impact firm innovation performance. The research finds that technological IT resource infrastructure capabilities and emerging digital technology capabilities form the critical technological foundation driving corporate data insights and technology conversion. Organizational-level IT resource integration capabilities and IT human resource capability act as essential intermediaries linking technology deployment to performance realization. At the same time, market environmental dynamism, industry characteristics, and government policy significantly moderate the capability conversion paths. Furthermore, the study proposes a closed-loop model of “system embedding–capability integration–performance feedback”, highlighting the path dependence and conditional adaptability of IT capabilities in multi-level interactions and dynamic environments. This research not only enriches the understanding of the role mechanisms of IT capabilities in the field of information systems but also provides theoretical foundations and practical insights for firms in formulating digital transformation strategies and achieving the system conversion of technological value.