Abstract:
The digital era presents both an imperative and an opportunity for library and information services to evolve beyond traditional standards. While the adoption of technologies like artificial intelligence (AI), open-access platforms (OA), and makerspaces is frequently discussed, the evidence remains fragmented across case studies, obscuring a comprehensive understanding of the full impact and consistent challenges. This study fills this knowledge gap by synthesizing empirical data on digital innovation in libraries using a thorough literature review anchored by the Technology-Organisation-Environment (TOE) framework. Following the PRISMA guidelines, we analyzed 85 peer-reviewed studies published between 2014 and 2024. Our findings identify four predominant thematic areas of innovation, such as intelligent discovery systems, scholarly communication infrastructures, digital literacy platforms, and the expansion into lending non-traditional items (Library of Things). The review confirms that these innovations significantly enhance operational efficiency, accessibility, user personalization, and community relevance. The TOE framework analysis reveals that digital innovation is consistently hindered not by technological limitations but by organisational barriers (financial constraints, skills gaps) and environmental pressures (funding models, competition). The study concludes that the sustainable integration of digital innovation is a strategic issue, requiring committed investment from parent institutions and a paradigm shift in library education. This review provides a consolidated evidence base for policymakers, library administrators, and LIS educators to make informed decisions for future-proofing library services.