Jul 2026· Dinasti International Journal of Management Science· 0 citations· 60 references
TL;DR
This systematic literature review explores the relationship between digital maturity and economic sustainability, with government support as a moderating factor, and proposes a multi-level conceptual framework and actionable policy recommendations to support inclusive and adaptive SME digitalization.
Abstract
The digitalization of SMEs is a key driver of economic resilience and sustainability in the era of Industry 4.0. However, empirical insights into how digital maturity influences SME performance in developing economies remain fragmented. This systematic literature review, guided by the PRISMA framework, explores the relationship between digital maturity and economic sustainability, with government support as a moderating factor. The findings show that digital maturity enhances innovation, efficiency, financial access, and strategic agility, though these outcomes are shaped by internal capacities, policy environments, and digital literacy. Government support plays a critical role in amplifying digital transformation outcomes through regulatory incentives, infrastructure development, and capacity-building programs. The theoretical synthesis highlights a shift from traditional frameworks like RBV and TOE to integrative approaches such as dynamic capabilities theory and digital ecosystem perspectives. This review proposes a multi-level conceptual framework, identifies key research gaps, and offers actionable policy recommendations to support inclusive and adaptive SME digitalization.
MSMEs play a vital role in economic growth and job creation in developing countries, yet they still face numerous challenges that can be addressed through digital financial innovation, although evidence on their impact on sustainable performance remains fragmented and not yet comprehensively integrated. This study presents a PRISMA-based systematic literature review of 40 studies retrieved from Web of Science and Scopus (2020–2025). The selected studies were synthesized using thematic content analysis to identify dominant theoretical foundations, methodological approaches, and contextual factors. The findings show that digital financial innovation improves MSME performance through enhanced financial inclusion, operational efficiency, and business resilience. However, the magnitude of these effects varies across countries due to differences in digital infrastructure, regulatory environments, and digital literacy levels. Cross-sectional designs dominate the literature, while longitudinal evidence remains limited. Overall, institutional and infrastructural readiness is a key determinant of the effectiveness of digital financial innovation in supporting MSME sustainability.
Eka Yuliyanti, Anis Turmudhi, Tri Sumiyanti et al.· Journal of Economics Researc...· 0 citations
Digital innovation has become a key enabler of the circular economy, yet existing research on SMEs remains fragmented across technological, organizational, and institutional perspectives. This study addresses this gap through a bibliometric analysis and systematic literature review of 87 peer-reviewed articles published between 2017 and 2025. The review synthesizes the evolution of digital research, identifies its theoretical foundations, key barriers, enabling factors, and performance outcomes, and develops a multi-level conceptual framework linking micro-, meso-, macro-, and ecosystem-level perspectives. The findings suggest that successful digital innovation-enabled circular transformation depends on the interaction of digital capabilities, organizational resources, institutional support, and stakeholder collaboration. The study further reveals that financial constraints, limited digital capabilities, and weak institutional support remain major barriers, whereas Industry 4.0 technologies, leadership commitment, and ecosystem collaboration serve as critical enablers. By integrating fragmented theoretical perspectives into a coherent framework, this review advances the understanding of digital adoption in SMEs and provides a structured research agenda together with practical implications for managers and policymakers seeking to accelerate sustainable digital transformation.
Yi-Jun Cheng, Umar H. A. Kohar· Sustainability· 0 citations
Asian firms increasingly face a dual strategic requirement: they must accelerate digital transformation while meeting rising environmental, social and governance (ESG) expectations. This paper develops the ESG-digital nexus as a strategic management framework explaining how digital capabilities can strengthen ESG performance and how ESG objectives can discipline digital investment toward long-term value creation. Using an integrative conceptual synthesis informed by the resource-based view, dynamic capabilities theory and selected Asian sustainability contexts, the paper reframes digital transformation and ESG integration as mutually reinforcing organisational capabilities rather than separate compliance or technology agendas. The framework identifies three mechanisms: digitally enabled ESG measurement, behavioural embedding through digital institutional behavioural design and stakeholder-facing transparency. The illustrative evidence and maturity matrix suggest that firms with high digital and ESG maturity are better positioned to convert sustainability commitments into operational routines, financial resilience and reputational advantage. The paper contributes a practical quadrant model for diagnosing organisational maturity and for guiding staged managerial action in Asian firms operating under tightening sustainability reporting regimes.
K. Tan· International Journal of Sci...· 0 citations
By promoting healthier digital practices, organisations can improve employee well-being and effectively use digital tools, ultimately enhancing competitiveness in a dynamic landscape.
Dilek Şahin Yomralıoğlu, Beyza Toksoy· Istanbul Journal of Economic...· 0 citations
Industrial symbiosis (IS) and digital industrial symbiosis (DIS) are widely advocated as essential strategies for furthering circular economy (CE) goals within the European Union; yet empirical evidence about the preparedness of small and medium-sized firms (SMEs) to use these methods is still scarce. This study investigates the organizational, technological, and perceptual aspects influencing SMEs’ preparedness to adopt IS and DIS, emphasizing digital maturity, perceived benefits, barriers, and the institutional support conditions. A convergent mixed-methods methodology was employed, combining qualitative thematic analysis of semi-structured interviews with SMEs and intermediary organizations, alongside quantitative data from a structured survey conducted across various European countries. The study examined the relationships between adoption readiness and digital maturity, perceived benefits, barriers, and institutional support conditions, while qualitative insights offered further contextual comprehension of trust, governance, and implementation conditions. The findings indicate that digital maturity and perceived benefits are the primary determinants of adoption readiness, but perceived barriers and institutional support predominantly influence implementation feasibility rather than initial willingness. This study differentiates between motivational readiness and structural feasibility, thereby enhancing adoption models and offering insights for policymakers, intermediaries, and practitioners involved in the design of digital industrial symbiosis platforms and SME support instruments.
Valerij Dermol, Špela Dermol· Human Systems Management· 0 citations
The rapid advancement of digital technologies has transformed competitive dynamics across industries, particularly among Information and Communication Technology (ICT) service Small and Medium Enterprises (SMEs) in developing economies. To remain competitive amid technological disruption, evolving customer expectations, and sustainability challenges, firms must continuously adapt their resources and capabilities. Drawing on Dynamic Capability Theory (DCT), this paper proposes a conceptual framework that examines the role of dynamic capabilities in enhancing digital competitiveness and organizational sustainability. The study further integrates the Triple Bottom Line (TBL) perspective by conceptualizing sustainability through economic, social, and environmental dimensions. Through a comprehensive review of contemporary literature, the paper argues that dynamic capabilities enable ICT service SMEs to respond effectively to environmental changes, strengthen digital competitiveness, and achieve sustainable competitive advantage. The proposed framework contributes to the literature by extending DCT into the domains of digital competitiveness and organizational sustainability while offering practical insights for SME managers and policymakers seeking to foster resilience, innovation, and long-term growth. The paper concludes by highlighting future research directions for advancing sustainable digital transformation among ICT service SMEs.
S. Shami, N. Rashid, Y. Hisham et al.· International journal of com...· 0 citations