Internet of Things (IoT) and the Environmental Sustainability: A Literature Review and Recommendations for Future Research

ABSTRACT As the Internet of Things (IoT) surges forward, intersecting with an urgent demand for environmental sustainability (ES), digital technologies emerge as potent orchestrators of systemic transformation. Employing a subtle blend of bibliometric‐systematic literature review (B‐SLR) and qualitative insights, this research investigates IoT's multifaceted roles—spanning smart urban systems, precision agriculture, and intelligent waste management. Anchored theoretically in the multi‐level perspective (MLP), the analysis illuminates how groundbreaking niche experiments infiltrate entrenched regimes, propelled by strategic digitalization pathways and enriched by open innovation's collaborative dynamism. Yet, complexities arise: interoperability hurdles, persistent standardization bottlenecks, and intricate security dilemmas remain. Addressing these demands requires robust engagement across diverse actors, turning isolated innovations into large‐scale, systemic realities. Ultimately, the study stresses that navigating this intricate interplay between digitalization and open innovation is indispensable for catalyzing genuine sustainability transitions.