The impact of design thinking and its underlying theoretical mechanisms: A review of the literature

Design thinking (DT) is of growing interest to academics and practitioners as a practice to approach problem‐solving and innovation Its influence extends beyond the realms of innovation and corporate performance, yet a comprehensive overview of its multifaceted impact remains surprisingly elusive in DT research. Furthermore, explanations for how DT generates such impact are scattered and inadequately grounded in existing literature. Understanding DT impact, therefore, requires a more robust integration with existing literature, synthesizing interdisciplinary research streams. Conducting a systematic literature review to assemble and elucidate the current knowledge and theoretical foundations of DT and its impact, we following a rigourous search process. We screened 1035 publications and included 69 articles for our review. Synthesizing the theories underpinning these papers, we identified four theoretical mechanisms that explain the impact of DT—integration, reframing, enablement and collaborative engagement. We further provide a structured overview of four levels of DT impact that research has examined so far—organizations, teams, individuals and society. Our study advances innovation management research through a holistic overview of the what and how of DT impact. Furthermore, we provide three future perspectives for advancing research on DT impact, aiming to encourage further exploration and understanding in this critical area.