IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v98y2025ics0038012124003240.html
   My bibliography  Save this article

Enhancing SMEs sustainable innovation and performance through digital transformation: Insights from strategic technology, organizational dynamics, and environmental adaptation

Author

Listed:
  • Wang, Shaofeng
  • Zhang, Hao

Abstract

With the advent of the digital wave, understanding the impact of Digital Transformation on sustainable development in firms is increasingly important. Drawing from the Technology-Organization-Environment (TOE) framework and the Dynamic capability view, this study investigates the determinants of Digital Transformation and its impact on Sustainable Innovation Capability and Sustainable Organizational Performance. Data from 261 firms were collected via surveys and analyzed using partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The results demonstrate that Technology, Organization, and Environment are critical factors driving Digital Transformation. Digital Transformation can enhance Sustainable Organizational Performance by improving a firm's Sustainable Innovation Capability. Environmental Dynamism positively moderates the effect of Digital Transformation on Sustainable Innovation Capability and Sustainable Organizational Performance. Importance-performance map analysis (IPMA) confirms Digital Transformation as the most significant predictor of Sustainable Organizational Performance. fsQCA identifies three configurations leading to highly Sustainable Organizational Performance. These findings provide new theoretical evidence for understanding the relationships among Digital Transformation, Sustainable Innovation Capability, and Sustainable Organizational Performance and the moderating role of Environmental Dynamism in these relationships. This study offers a new perspective on the relationship between Digital Transformation and sustainable development and supports applying TOE framework, and Dynamic capability view. The results are significant for understanding the drivers of Digital Transformation and its impact on sustainable development in firms.

Suggested Citation

  • Wang, Shaofeng & Zhang, Hao, 2025. "Enhancing SMEs sustainable innovation and performance through digital transformation: Insights from strategic technology, organizational dynamics, and environmental adaptation," Socio-Economic Planning Sciences, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:soceps:v:98:y:2025:i:c:s0038012124003240
    DOI: 10.1016/j.seps.2024.102124
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012124003240
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2024.102124?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:98:y:2025:i:c:s0038012124003240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.