Organizations increasingly face pressures arising from technological change, evolving market conditions, and growing competitive intensity, creating a need for capabilities that support adaptation and long-term growth. This study examines the role of innovation capabilities in facilitating organizational transformation and sustainable business growth through a qualitative Systematic Literature Review (SLR) guided by the PRISMA 2020 framework. The findings indicate that innovation capabilities function as strategic organizational resources that enhance adaptability, support transformation initiatives, and strengthen value creation processes. The review further reveals that innovation capabilities contribute to innovation performance, organizational resilience, and competitiveness by enabling firms to respond effectively to dynamic business environments. In addition, the integration of innovation-oriented practices supports sustainable growth through continuous improvement and strategic renewal. The study concludes that innovation capabilities are critical drivers of organizational transformation and long-term business success within increasingly complex and innovation-driven markets.
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