Innovative solutions can promote sustainability and competitiveness by creating new products and services that are environmentally friendly while meeting customer needs. Sustainability-oriented innovation includes the integration of ecological and social aspects into products, processes, and organizational structures to avoid or reduce the environmental load and achieve greater benefits in the community. These types of innovations make intentional changes to a company’s products, services, or processes to generate long-term social and environmental benefits while creating economic profits for the firm. There are only a few literature review articles that investigate the link between sustainability-oriented innovations and firm competitiveness. Therefore, this systemic literature article aims to fill this research gap and present the results of a systematic literature review that focuses on the key factors affecting the sustainability innovation and competitiveness relationship. The results might trigger further research on the topic by digging deeper into the subject with case studies.