Digital innovation and sustainable accounting practices: A systematic literature review through the governance context

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Abstract

The digital revolution has brought about a significant change in the way accounting and auditing procedures are conducted, marking a noteworthy paradigm shift (Pizzi et al., 2021). Businesses experience changes as a result of incorporating new ideas or digital technologies into their current processes. This study aims to assess the effects of digital innovation on sustainable accounting practices, by utilizing a systematic literature review approach. The research covers published articles during the last two decades (2003–2023), and the search methodology employs Scopus, PubMed, IEEE Xplore, Google Scholar, and ResearchGate. The findings reveal that digital innovation in accounting leads to efficient accounts management with authenticity, reliability, credibility, and transparency as a whole. Companies need to use cutting-edge technologies in an adaptive way as the digital era progresses in order to thrive in a continuously changing and evolving environment. Large-scale data, analytics of data, cloud computing, artificial intelligence (AI), and blockchain technology are the virgin fields for future research directions of sustainable accounting practice. The prevailing viewpoint is optimistic, indicating that digital innovation presents more of an opportunity for accounting and accounts rather than a threat.

Keywords: Digital Innovation, Sustainable Accounting, Information Technology, Financial Reporting

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M4, M40, M41, M42

Received: 04.03.2024
Accepted: 01.01.2025
Published online: 06.01.2025

How to cite this paper: Alsulami, F. (2025). Digital innovation and sustainable accounting practices: A systematic literature review through the governance context. Journal of Governance & Regulation, 14(1), 38–48. https://doi.org/10.22495/jgrv14i1art4