Exploring the Role of Digital Transformation in Enhancing SMEs Sustainability Performance
A Systematic Literature Review
Keywords:
Digital Transformation, Sustainability Performance, Keywords: Digital Transformation, Sustainability Performance, Small and Medium Enterprises (SMEs), Systematic Literature Review, career shock; career adaptability; digital overload; systematic literature reviewAbstract
Small and Medium Enterprises (SMEs) play a crucial role in achieving sustainable development goals, yet many still face challenges in maximizing the benefits of digital transformation to improve sustainability performance. Digital transformation is believed to be a catalyst for innovation and operational efficiency, but empirical evidence regarding the extent to which digitalization actually contributes to SME sustainability remains mixed and has not been regularly integrated. This study conducted a Systematic Literature Review (SLR) to identify, synthesize, and evaluate recent research on the relationship between digital transformation and sustainability performance in SMEs. The review process examined 40 scientific articles published between 2021 and 2025 in reputable international journals (Scopus Q1-Q4 and WoS indexed). The analysis was conducted using the PICOS framework and the PRISMA 2020 protocol to ensure transparency and repeatability of the selection process. The study results indicate that digital transformation significantly impacts SME sustainability performance, particularly through increased resource efficiency, supply chain transparency, and green innovation. However, the success of its implementation is strongly influenced by digital readiness, policy support, and industry and regional contexts. In general, digitalization has been shown to strengthen the economic, social, and environmental dimensions of SME sustainability, although challenges such as limited infrastructure and digital competency remain major obstacles in developing countries. This study makes an important contribution by presenting a conceptual map and synthesized findings that explain how and to what extent digital transformation plays a role in driving SME sustainability performance.
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