IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p4917-d1092833.html
   My bibliography  Save this article

Do We Consider Sustainability When We Measure Small and Medium Enterprises’ (SMEs’) Performance Passing through Digital Transformation?

Author

Listed:
  • Isotilia Costa Melo

    (Escuela de Ingeniería de Coquimbo (EIC), Universidad Católica del Norte (UCN), Coquimbo 1781421, Chile)

  • Paulo Nocera Alves Junior

    (Escuela de Ingeniería de Coquimbo (EIC), Universidad Católica del Norte (UCN), Coquimbo 1781421, Chile)

  • Geandra Alves Queiroz

    (Engineering Department, Production Engineering, State University of Minas Gerais (UEMG), Passos 31360, Brazil)

  • Wilfredo Yushimito

    (Faculdad de Ingerniería y Ciencias (FIC), Universidad Adolfo Ibáñez (UAI), Viña del Mar 7941169, Chile)

  • Jordi Pereira

    (Faculdad de Ingerniería y Ciencias (FIC), Universidad Adolfo Ibáñez (UAI), Viña del Mar 7941169, Chile
    UPF Barcelona School of Management, Pompeu Fabra University, 08008 Barcelona, Spain)

Abstract

Small-medium enterprises (SMEs) represent 90% of business globally. Digital Transformation (DT) affects SMEs differently from larger companies because although SMEs have more flexibility and agility for adapting to new circumstances, they also have more limited resources and specialization capabilities. Thus, it is fundamental to measure SMEs’ performance considering different perspectives. Here, we describe and analyze the state-of-the-art of DT in SMEs, focusing on performance measurement. We center on whether the tools used by SMEs encompass the triple bottom line of sustainability (i.e., environmental, social, and economic aspects). To do so, in December 2021, we performed a comprehensive systematic literature review (SLR) on the Web of Science and Scopus. In addition, we also explored a novel approach for SLR: topic modeling with a machine learning technique (Latent Dirichlet Allocation). The differences and interchangeability of both methods are discussed. The findings show that sustainability is treated as a separate topic in the literature. The social and environmental aspects are the most neglected. This paper contributes to sustainable development goals (SDGs) 1, 5, 8, 9, 10, and 12. A conceptual framework and future research directions are proposed. Thus, this paper is also valuable for policymakers and SMEs switching their production paradigm toward sustainability and DT.

Suggested Citation

  • Isotilia Costa Melo & Paulo Nocera Alves Junior & Geandra Alves Queiroz & Wilfredo Yushimito & Jordi Pereira, 2023. "Do We Consider Sustainability When We Measure Small and Medium Enterprises’ (SMEs’) Performance Passing through Digital Transformation?," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:4917-:d:1092833
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/4917/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/4917/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giovanni Dosi & Sébastien Lechevalier & Angelo Secchi, 2010. "Interfirm heterogeneity: nature, sources and consequences for industrial dynamics. An introduction," Post-Print hal-00642680, HAL.
    2. Eller, Robert & Alford, Philip & Kallmünzer, Andreas & Peters, Mike, 2020. "Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization," Journal of Business Research, Elsevier, vol. 112(C), pages 119-127.
    3. Giovanni Dosi & Sébastien Lechevalier & Angelo Secchi, 2010. "Introduction: Interfirm heterogeneity--nature, sources and consequences for industrial dynamics," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(6), pages 1867-1890, December.
    4. Federica Acerbi & Claudio Sassanelli & Sergio Terzi & Marco Taisch, 2021. "A Systematic Literature Review on Data and Information Required for Circular Manufacturing Strategies Adoption," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    5. Nasiri, Mina & Ukko, Juhani & Saunila, Minna & Rantala, Tero, 2020. "Managing the digital supply chain: The role of smart technologies," Technovation, Elsevier, vol. 96.
    6. Gabriela Viale Pereira & Elsa Estevez & Diego Cardona & Carlos Chesñevar & Pablo Collazzo-Yelpo & Maria Alexandra Cunha & Eduardo Henrique Diniz & Alex Antonio Ferraresi & Frida Marina Fischer & Flúvi, 2020. "South American Expert Roundtable: Increasing Adaptive Governance Capacity for Coping with Unintended Side Effects of Digital Transformation," Sustainability, MDPI, vol. 12(2), pages 1-47, January.
    7. Bouwman, Harry & Nikou, Shahrokh & de Reuver, Mark, 2019. "Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?," Telecommunications Policy, Elsevier, vol. 43(9).
    8. Gupta, Ashish & Li, Han & Farnoush, Alireza & Jiang, Wenting, 2022. "Understanding patterns of COVID infodemic: A systematic and pragmatic approach to curb fake news," Journal of Business Research, Elsevier, vol. 140(C), pages 670-683.
    9. Hai Guo & Zhuen Yang & Ran Huang & Anqi Guo, 2020. "The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-25, December.
    10. Geandra Alves Queiroz & Paulo Nocera Alves Junior & Isotilia Costa Melo, 2022. "Digitalization as an Enabler to SMEs Implementing Lean-Green? A Systematic Review through the Topic Modelling Approach," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    11. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    12. Bruno Francisco Diniz Marinho & Isotilia Costa Melo, 2022. "Fostering Innovative SMEs in a Developing Country: The ALI Program Experience," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    13. Culot, Giovanna & Nassimbeni, Guido & Orzes, Guido & Sartor, Marco, 2020. "Behind the definition of Industry 4.0: Analysis and open questions," International Journal of Production Economics, Elsevier, vol. 226(C).
    14. David Moher & Alessandro Liberati & Jennifer Tetzlaff & Douglas G Altman & The PRISMA Group, 2009. "Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement," PLOS Medicine, Public Library of Science, vol. 6(7), pages 1-6, July.
    15. Saura, Jose Ramon & Ribeiro-Soriano, Domingo & Zegarra Saldaña, Pablo, 2022. "Exploring the challenges of remote work on Twitter users' sentiments: From digital technology development to a post-pandemic era," Journal of Business Research, Elsevier, vol. 142(C), pages 242-254.
    16. Sohaib S. Hassan & Christian Reuter & Levan Bzhalava, 2021. "PERCEPTION OR CAPABILITIES? AN EMPIRICAL INVESTIGATION OF THE FACTORS INFLUENCING THE ADOPTION OF SOCIAL MEDIA AND PUBLIC CLOUD IN GERMAN SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 25(01), pages 1-26, January.
    17. Ardito, Lorenzo & Raby, Simon & Albino, Vito & Bertoldi, Bernardo, 2021. "The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 44-56.
    18. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    19. Chatzistamoulou, Nikos, 2023. "Is digital transformation the Deus ex Machina towards sustainability transition of the European SMEs?," Ecological Economics, Elsevier, vol. 206(C).
    20. Cenamor, Javier & Parida, Vinit & Wincent, Joakim, 2019. "How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity," Journal of Business Research, Elsevier, vol. 100(C), pages 196-206.
    21. Paulo Nocera Alves Junior & Isotilia Costa Melo & Lie Yamanaka & Maico Roris Severino & Athanasios Rentizelas, 2021. "Supporting the Bidding Decisions of Smallholder Farmers in Public Calls in Brazil," Agriculture, MDPI, vol. 12(1), pages 1-24, December.
    22. Kevin M. Quinn & Burt L. Monroe & Michael Colaresi & Michael H. Crespin & Dragomir R. Radev, 2010. "How to Analyze Political Attention with Minimal Assumptions and Costs," American Journal of Political Science, John Wiley & Sons, vol. 54(1), pages 209-228, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marcela Marçal Alves Pinto Mick & João Luiz Kovaleski & Rafael Luis Mick & Daiane Maria de Genaro Chiroli, 2024. "Developing a Sustainable Digital Transformation Roadmap for SMEs: Integrating Digital Maturity and Strategic Alignment," Sustainability, MDPI, vol. 16(20), pages 1-30, October.
    2. Rafael Martínez-Peláez & Marco A. Escobar & Vanessa G. Félix & Rodolfo Ostos & Jorge Parra-Michel & Vicente García & Alberto Ochoa-Brust & Pablo Velarde-Alvarado & Ramón A. Félix & Sandra Olivares-Bau, 2024. "Sustainable Digital Transformation for SMEs: A Comprehensive Framework for Informed Decision-Making," Sustainability, MDPI, vol. 16(11), pages 1-25, May.
    3. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.
    4. Taleb S. T. Taleb & Norashidah Hashim & Norria Zakaria, 2023. "Entrepreneurial Leadership and Entrepreneurial Success: The Mediating Role of Entrepreneurial Opportunity Recognition and Innovation Capability," Sustainability, MDPI, vol. 15(7), pages 1-17, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Geandra Alves Queiroz & Paulo Nocera Alves Junior & Isotilia Costa Melo, 2022. "Digitalization as an Enabler to SMEs Implementing Lean-Green? A Systematic Review through the Topic Modelling Approach," Sustainability, MDPI, vol. 14(21), pages 1-21, October.
    2. Bruno Francisco Diniz Marinho & Isotilia Costa Melo, 2022. "Fostering Innovative SMEs in a Developing Country: The ALI Program Experience," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    3. Radicic, Dragana & Petković, Saša, 2023. "Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    4. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    5. Marino-Romero, Jorge Alberto & Palos-Sánchez, Pedro R. & Velicia-Martín, Félix, 2024. "Evolution of digital transformation in SMEs management through a bibliometric analysis," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    6. Kun Wang & Bing Chen & Yuhong Li, 2024. "Technological, process or managerial innovation? How does digital transformation affect green innovation in industrial enterprises?," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-32, February.
    7. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    8. Broccardo, Laura & Tenucci, Andrea & Agarwal, Reeti & Alshibani, Safiya Mukhtar, 2024. "Steering digitalization and management control maturity in small and medium enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    9. Daniela Ioniță & Ion Alexandru Olteanu, 2023. "SME and digital transformation: a dream too far?," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 7-16, April.
    10. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    11. Zhou, Dan & Kautonen, Mika & Dai, Weiqi & Zhang, Hui, 2021. "Exploring how digitalization influences incumbents in financial services: The role of entrepreneurial orientation, firm assets, and organizational legitimacy," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    12. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    13. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda & Nicola, Maura Bedin, 2023. "Innovation in times of crisis: The relevance of digitalization and early internationalization strategies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    14. Qiao, Penghua & Chang, Ming & Zeng, Yuping, 2024. "The influence of digitalization on SMEs’ OFDI in emerging countries," Journal of Business Research, Elsevier, vol. 177(C).
    15. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    16. Bongsug (Kevin) Chae, 2022. "Mapping the Evolution of Digital Business Research: A Bibliometric Review," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    17. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    18. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda, 2024. "Every cloud has a silver lining: The role of business digitalization and early internationalization strategies to overcome cloudy times," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    19. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    20. Ediansyah & Muhtosim Arief & Mohammad Hamsal & Sri Bramantoro Abdinagoro, 2022. "Interplay between Networking Capability and Hospital Performance in Indonesia’s Medical Tourism Sector," IJERPH, MDPI, vol. 20(1), pages 1-20, December.

    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:gam:jsusta:v:15:y:2023:i:6:p:4917-:d:1092833. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.