Digital innovation has become an essential driver of competitive advantage, operational efficiency, and sustainable value creation in modern enterprises. Building on the collective insights from recent high-impact bibliometric studies, this review synthesizes the evolution, thematic clusters, and emerging trends surrounding digital transformation across multiple domains—management science, supply chain analytics, sustainability-oriented innovation, artificial intelligence adoption in human resource management, and the digital economy of small and medium enterprises. The analysis highlights the increasing convergence of technologies such as artificial intelligence, machine learning, big data analytics, blockchain, and digital platforms in reshaping organizational processes and strategic decision-making. A key finding from the reviewed literature is that digital innovation is not merely technological adoption but an organizational capability influenced by leadership, culture, and ecosystem dynamics. This paper develops an integrated conceptual perspective and identifies future research directions including multi-level digital capability frameworks, digital resilience strategies, human-centric transformation, and cross-sector digital ecosystem development. The review contributes a consolidated understanding of digital innovation’s expanding role in managerial decision-making and offers a comprehensive agenda for scholars and practitioners seeking to navigate the next phase of digital transformation.