SUSTAINABLE INNOVATION IN THE DIGITAL AGE: FACING CHALLENGES AND OPPORTUNITIES IN GLOBAL MARKETS

Abstract

Amid the wave of digital transformation during the Fourth Industrial Revolution, companies are required to develop sustainable innovation as a key strategy to maintain global competitiveness. The background of this study stems from the urgency to understand how sustainable innovation can be optimized in the context of rapid technological changes and dynamic market demands. The primary objective of this research is to explore strategies and challenges faced by companies in implementing sustainable innovation in the digital era, and how these efforts impact organizational performance. This study adopts a mixed methods approach, combining both qualitative and quantitative methodologies. Data were collected through a questionnaire survey of 100 respondents from technology-based companies in Indonesia, Sweden, and Switzerland, along with in-depth interviews with innovation managers. Quantitative data were analyzed using regression analysis, while qualitative data were examined through thematic analysis. The findings reveal that 70% of the participating companies have integrated sustainable innovation into their business strategies, with 65% reporting improvements in operational and financial performance. However, challenges such as limited top-management support and complex regulatory frameworks remain key obstacles. The study also identifies significant opportunities through strategic partnerships and the use of digital technologies to accelerate innovation