1. Introduction
The importance of small and medium enterprises (SMEs) in the global economy cannot be overstated. They represent approximately 90% of businesses and contribute up to 40% of national income in emerging economies and more than 50% of employment worldwide. SMEs play a pivotal role in driving economic growth and generating employment opportunities. They are important in enhancing societal well-being and fostering technological progress (Filho, 2015). However, SMEs face vulnerability regarding technological challenges, primarily due to their limited financial resources and expertise in effectively harnessing emerging technologies (Lopes, 2022). Financial technology (fintech), in particular, can play a significant role in the transition of SMEs towards more sustainable business models. The sustainability commitment of these companies influences their interest in investing in green technology, although economic and social value remains the primary motivation (Pizzi et al., 2021). While the commitment to sustainability influences their interest in investing in green technology, the primary drivers for these investments are often social and economic gains (Saunila et al., 2019).
Innovative technologies such as cloud computing provide SMEs with a means to maintain competitiveness against larger corporations by leveraging software and cutting-edge business systems to achieve economies of scale. Tech providers must know what SMEs need, while SMEs should keep updating themselves to achieve and maintain success (El-Haddadeh, 2020). However, adopting Industry 4.0 technologies for ethical and sustainable operations can be challenging, because of limited customer motivation, inadequate long-term planning, insufficient awareness of benefits, lack of management support and high initial costs. Challenges also extend to concerns about failure and demand uncertainty (R. Kumar et al., 2020).
In the pursuit of sustainable performance, SMEs prioritise technological and organisational factors over environmental considerations, which influence innovation, human resource management and green marketing. During the pandemic, adopting environmentally conscious procurement policies required SMEs to invest additional time and effort in sustainable development, to intensify research and development, and to embrace advanced technologies in production, services and marketing. Moreover, many SMEs demonstrated the potential to enhance their resilience by minimising hazardous waste and incorporating more eco-friendly materials (Alraja et al., 2022).
Given that micro, small and medium-sized enterprises significantly contribute to economies across both developed and developing nations, further research is imperative to gain deeper insights into their sustainable development within the evolving globalised and digitalised landscape (Mukhoryanova et al., 2021).
We address this need by systematically reviewing the existing literature related to the use of technology by SMEs to incorporate sustainability into their business. On this basis, we synthesise trends and elaborate a theoretical framework for this important issue. In doing so, we contribute to the field of sustainability in SMEs, by providing a comprehensive up-to-date evaluation of the use of technology by SMEs to transform their business and make it more sustainable. This study enhances our understanding of the question, by analysing the latest academic papers, from a wide search of journals. By compiling and analysing a large body of literature in this field, we generate a comprehensive framework to provide a complete overview. Moreover, we examine several aspects in detail, including yearly journal trends, study distribution by region and journal, research methods, and prevalent themes. This investigation of how technology and innovation can improve the sustainability of small businesses could be of interest to managers, investors, regulators and academics, among others. Specifically, the study addresses the following research questions:
(i) What literature exists concerning the use of technology by SMEs to incorporate sustainability into their business?
(ii) What are the main issues addressed in the research on the use of technology by SMEs to incorporate sustainability into their business?
The rest of this paper is organised as follows: in Section 2, we explore the existing literature within the field to determine the research context. Section 3 then presents the study methods employed, after which we provide a comprehensive analysis of the literature considered. Potential directions for future research are discussed in Section 5, and finally the main conclusions drawn are summarised in Section 6.
2. Technology and SME sustainability
2.1. Use of different technologies by SMEs
According to a recent OECD survey, 70% of SMEs intensified their use of digital technologies following the outbreak of the COVID19 pandemic. Ameen et al. (2022) reported that in order to survive, SMEs in a wide range of industries incorporated innovative technologies such as mobile applications, AI, blockchain, and mixed and extended virtual reality. However, many need support to perform this transition, as they lack the skills, knowledge and capability to take advantage of the potential offered by these technologies (OECD, 2021). The OECD survey findings also reveal the existence of structural barriers to SMEs, such as inadequate business models and processes, insufficient investment or the absence of necessary collaterals to secure loans. In some cases, too, vital facilities such as a high-speed broadband service are not available.
Our literature review identified several innovative technologies that can contribute to the integration of sustainable practices and the development of a sustainable business model. One such is fintech, which can play an important role in the transition of SMEs towards a more sustainable business model and hence a better integration of circular economy practices (Pizzi et al., 2021). The sustainability commitment of these companies influences their interest in green technology, although the main motivation for investing in this field is usually to achieve added social and economic value (Saunila et al., 2019). Companies that address various goals and which are able to adapt to changing circumstances can make good use of applications and mobile devices as Industry 4.0. components. These are usually welcomed by the workforce, electricity costs are reduced, employee mobility is increased and company performance improved (Iakovets et al., 2022).
Innovative technologies such as cloud computing can enable SMEs to become more competitive against large companies, by achieving economies of scale via appropriate software and the latest business systems. To accomplish this, however, suppliers must understand the needs of SMEs, and these SMEs must continually update and adapt (El-Haddadeh, 2020).
Among other Industry 4.0 technologies that may be employed, Analytics and the Internet of Things (IoT) are considered the best for sustainable financing in the supply chain. Soni et al. (2022) recommend the use of a single technology because this requires less capital investment and is easier to implement. If technologies are to be combined, the use of big data with analytics is advised. However, the adoption of Industry 4.0 technologies for ethical and sustainable operations is subject to potential challenges, such as a lack of customer motivation, inadequate long-term planning, non-awareness of the contributions offered and the absence of management support, as well as high initial costs (R. Kumar et al., 2020).
2.2. Technology and its relationship with SME performance
The sustainable performance of SMEs is often spurred and improved by the adoption of information technologies such as big data, the IoT and smart factories. However, if business performance is to be positive and sustainable, the organisation’s structure and processes must be supportive. Technological updating in SMEs is driven by social capital, links with multinationals and transnationals, innovation, exchange and networking, information technology, and the adoption of technology that improves productivity. For SMEs, innovation, especially the exploitation and exploration of technology, improves the chances of business survival and facilitates effective digital marketing. The integration of advanced marketing technologies and geographical expansion also influences perceptions of the importance of integrating the IoT into business operations. Technological and organisational factors are crucial inputs for innovation, human resource management and green marketing, and hence sustainable performance (Haseeb et al., 2019).
Technological updating in SMEs is associated with six driving forces: social capital, links with multinationals and transnationals, innovation, exchange and networking, information technology and the adoption of technology that improves productivity. In addition, successful adaptation depends on three conditions: the availability of technologically trained labour; the timely identification of opportunities for new technologies; and support from the workforce and the prevailing political culture. Updating and innovation follow from the exploration and exploitation of technology (Prasanna et al., 2019).
A study of the Indian restaurant industry concluded that government initiatives and policies, public-private association and the encouragement of ICT service providers are the most influential causal factors for the application of information and communication technologies (ICT) for sustainable growth. It also showed that the adoption of ICT applications in public procurement and logistics can reduce the cost of transactions within the business organisation. Coordinated efforts and effective partnerships among development elements enable ICT applications and frameworks to reach more SMEs and thus improve operational efficiencies. Moreover, collaboration and strategic alliances within the supply chain can reinforce organisational capabilities (Singh et al., 2019).
Another relevant consideration is the interaction between companies’ expansion into new locations and their adoption of advanced marketing technologies. The geographical expansion of the company can stimulate technological development. The size of the workforce also influences managers’ perceptions of the importance of the IoT. Thus, Suciu et al. (2021) reported that SMEs with more than 50 employees consider the IoT an important element in developing an effective digital marketing strategy.
Technological and organisational factors are considered more significant than environmental factors, with respect to innovation, human resource management and green marketing, when SMEs seek sustainable performance. Thus, adopting procurement policies based on environmental criteria requires SMEs to invest time, effort and financial resources in sustainable development, R&D and the use of updated technology for production, service provision and marketing. The pandemic spurred many companies to make important structural changes, adapting and reorienting their activities towards digital technologies, in order to assure their continued survival and to overcome limited access to sources of finance, investment and innovation (Alraja et al., 2022; Del Baldo et al., 2022).
2.3. Sustainability and its relationship with SME performance
As the global focus on environmental and social issues intensifies, SMEs are increasingly recognising the need to integrate sustainable practices into their operations (Grimm, 2013; Shields & Shelleman, 2015). With the rapidly changing business landscape, sustainability has become a buzzword that cannot be ignored. Many SMEs are well aware that sustainable practices should be embraced, not only to benefit the environment, but also for their own long-term success. Kasiri et al. (2020) observed that more than two-thirds of SME owner/managers believed that sustainability engagement was worthwhile. However, SMEs, often considered the backbone of the economy, face unique challenges in relation to implementing sustainable initiatives. Limited resources, both financial and human, can make the adoption of eco-friendly practices seem daunting. On the other hand, research has shown that sustainability and profitability go hand in hand. By integrating sustainable practices into their operations, SMEs can not only reduce their environmental footprint but also enhance operational efficiency, improve brand reputation, attract socially conscious customers and gain a competitive advantage. But what exactly is the relationship between sustainability and SME performance? How does embracing sustainability positively influence the bottom line? To answer these questions, we must identify and assimilate previous research in this area, and highlight the issues remaining to be addressed. Through a comprehensive review of the relevant literature, this article examines the key drivers and benefits of sustainability for SMEs. It then explores how sustainable practices can help SMEs overcome challenges, such as resource constraints, and outlines practical strategies for integrating sustainability into their business models.
3. Methodology
3.1. Systematic literature review
In this systematic literature review (SLR), we explore the use of technology by SMEs to incorporate sustainability into their business practices, and consider the symbiotic relationship between sustainability, technology and SME performance. The SLR approach includes a comprehensive search strategy, data extraction, thematic coding, the synthesis of findings, quality assessment, and due consideration of possible limitations. In our SLR, the following procedure was applied. First, relevant academic databases were searched using keywords related to SMEs, technology, sustainability and the SDGs. Figure 1 shows the 17 UN Sustainable Development Goals. In total, 208 articles were identified and analysed. The articles were published across 147 journals, with Sustainability and Journal of Cleaner Production individually publishing most articles. The number of articles published annually increased from 2019, reflecting growing interest in the intersection of technology, SMEs and sustainability. The SLR performed is transparent, replicable and scientific, as indicated by Tranfield, Denyer & Smart (2003). Compared to traditional narrative reviews, SLR confers the following benefits: a) it has less potential for bias and yields a detailed outcome characterised by greater accuracy and thoroughness (Khatib et al., 2021; Leonidou et al., 2020), b) it provides a literature map of a specific research domain and facilitates data synthesis (Kauppi et al., 2018); c) it adheres to a well-defined protocol outlining the actions and steps to be taken, thus ensuring transparency and reproducibility (S. Kumar et al., 2022; Palmaccio et al., 2021).
In conducting this SLR, we followed the SPAR-4-SLR protocol guidelines indicated by Paul et al. (2021), in a two-phase structured approach: first, relevant documents were identified, read and comprehended; then, a bibliometric analysis was made of these articles. In greater detail, the SLR process consists of four key stages: (1) retrieving articles from databases, in accordance with the search strategy adopted; (2) identifying the specific articles to be analysed; (3) performing the analysis and synthesis; and (4) creating a useful theoretical framework. Figure 2 illustrates the data collection and analysis process, for each of these levels.
3.2. Search strategy
Three academic databases – Web of Science, Scopus and Google Scholar – were searched, using keywords and search terms with the Boolean operators (AND, OR). To make the search comprehensive, three groups of keywords and search terms were used and one keyword was required from each group, as follows:
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Group 1 (SMEs): “Small and medium sized enterprises” OR “SME” OR “Small businesses”
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Group 2 (Technology): “Technology” OR “Digitalization” OR “Digital transformation” OR “Automation” OR “ICT” OR “Industry 4.0”
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Group 3 (Sustainability): “Sustainability” OR “Sustainable” (to capture innovation, business model, value chain, development goals) OR “SDG”
3.3. Inclusion and exclusion criteria
The inclusion criteria for selecting relevant literature were that the articles should be peer reviewed or conference papers, published within the last 30 years (1993-2023). Non-English language publications and studies not directly related to the search criteria were excluded.
3.4. Data extraction
In this context, data extraction involves systematically collecting relevant information from the selected studies, including details such as the journal name, the title, author(s) and year of publication of the article, the research methodology used, the country in which the study was conducted, the key findings obtained, and the theoretical framework used.
3.5. Analysis and synthesis
The data compiled were then coded according to the themes and sub-themes identified, categorising the information into meaningful units to identify patterns, trends and relationships related to SMEs’ use of technology for sustainability. Synthesis of the coded data provides a comprehensive overview of the literature on the research question considered. In this synthesis, we summarise the key findings, identifying commonalities and differences across studies, and create a framework to understand the use of technology by SMEs to achieve sustainable development.
4. Results
In this section, we present the findings obtained from the 208 articles considered for analysis (see Table 1 of the Appendix).
4.1. Statistical results
4.1.1. Relevant terms
The Word Cloud method synthesises big data via simple pattern recognition. Our graphic representation clearly shows that across a wide range of journals and articles, certain fundamental terms arise repeatedly. Figure 3 illustrates the Word Cloud obtained from the abstracts considered, highlighting the most prevalent terms employed. The size of the words in the image is determined solely by their frequency of occurrence in the selected articles. As can be seen, the key terms of our study, namely “sustainability”, “sustainable”, “technology” and “SMEs,” are located at the centre of the figure. Among the articles considered, the term “sustainability” emerges 81 times, followed by “sustainable,” (63 times) and “SME” (61 times). The terms “innovation” and “technology” are encountered 56 and 54 times, respectively. Thus, all of these terms are prominent among the articles examined (see Table 1 of the Appendix).
4.1.2. Publication year
Figure 4 represents the number of studies identified, by year of publication, that address the use of technology by SMEs to incorporate sustainability concerns into their business operations. Chronologically, the article by Owen and Darkwa (2000) was the first to meet the search criteria (see Annex 1). During the period 2001-2006 no articles meeting the search criteria were published, while during the period 2007-2018, 2-7 valid articles appeared each year. From 2019, the number of publications addressing this topic increased significantly. Thus, from 2019 to 2021 between 21 and 29 articles on this subject were published each year, and a peak of 57 publications was recorded for 2022. In the first seven months of 2023, another 37 articles appeared, which confirmed the rising trend observed.
In September 2015, 196 countries agreed to establish the 17 Sustainable Development Goals (SDGs) and the 169 targets of the 2030 Agenda for Sustainable Development, seeking to create an effective framework to eradicate poverty, reduce inequalities and to fight against climate change. All signatories acknowledged that these initiatives should be coupled with strategies to fuel economic growth, address social needs (such as education, health and employment opportunities) and protect the environment. These SDGs address a wide range of complex interrelated challenges, and cannot be attained without the joint effort and collaboration of governments, organisations, the public and private sectors, the community and academia. With respect to the focus of our study, the international commitment to the 2030 Agenda was a major factor underlying the rising numbers of research papers appearing since 2015.
In 2020, the outbreak of the COVID-19 pandemic provoked an extraordinary crisis in the world of business, and SMEs were among the most severely affected, due to the resource constraints to which they were subjected. Studies have identified numerous strategies adopted by SMEs to withstand the impact of the pandemic, one such being the heightened use of technology and innovation. This factor, too, is of importance in explaining the uptick in publications on this topic from 2020.
4.1.3. Journal analysis
The 208 papers that met the search criteria were distributed across 147 journals. Of these, 135 published only one article. The two leading journals, by numbers of articles published, were Sustainability, with 31 articles, and Journal of Cleaner Production, which published 14. Each of the 208 articles contained an average of 14 citations. However, the following ten articles each were referenced by 70 or more studies (ranging from 70 to 298): Khan et al. (2021); Khanzode et al. (2021); Centobelli et al. (2020); Chege and Wang (2020); Isensee et al. (2020); Kumar et al. (2020); Singh et al. (2019); Pacheco et al. (2018); Aboelmaged (2018); and Moore and Manring (2009). Of the ten articles most commonly cited, five were published in Journal of Cleaner Production, making this journal the most impactful in the research field considered.
4.1.4. Regional analysis
Of the 208 papers included in our analysis, 166 (80%) addressed the use of technology by SMEs in one or more countries to incorporate sustainability into their business. Of these, 19 analysed multi-country data and 147 focused on single markets. Only 23 countries attracted more than one study. India (22 studies), Malaysia (15), Indonesia (12) and Pakistan (9) were the leading countries in this respect, accounting for 58 publications in total. Twenty articles presented multi-country empirical investigations. Figure 5 shows the distribution by continent of the articles, revealing that 42% of the studies provide evidence from Asia and 24% from Europe. The 42 articles (20%) that do not mention a specific region are mainly literature reviews.
4.1.5. Methodologies
Figure 6 illustrates the varied methodologies used in the investigations considered in our analysis. Among the 208 papers, 74 (35%) adopted a quantitative approach, often using partial least square regression models. Around 21% were literature reviews, discussed the development of a theoretical framework, or formulated a conceptual model concerning the topic of interest. A further 10% were case studies, another 10% obtained study data via interviews, and 9% employed surveys for this purpose. The remaining 15% were qualitative studies that also incorporated some quantitative analysis (Qualitative: other).
5. Theoretical framework based on the content of selected articles
Using our thematic analysis of this literature review, a theoretical framework was developed to provide a comprehensive understanding of how SMEs make use of technology to make their business more sustainable. The framework consists of several interrelated elements, including the external environment, organisational context, sustainability orientation, technology opportunities, innovation focus, knowledge management, assessment frameworks, sustainability practices, sustainability outcomes, and overall sustainability of the business. These elements highlight the key factors that influence SMEs’ adoption of technology for sustainable development and provide a guide for future research in this field. Figure 7 illustrates the theoretical framework developed.
5.1. External environment
Government regulations increasingly require environmental and social accountability from firms of all sizes (Asim et al., 2019; Hariastuti et al., 2022). Regulations such as carbon emission limits, energy efficiency standards, waste disposal rules and recycling mandates force SMEs to address sustainability issues. Failure to comply can result in fines, lawsuits and even losing the licence to operate. Customers, local communities, NGOs and other stakeholders may also pressure SMEs to address sustainability, through tactics such as purchasing criteria, protests and social media campaigns (Amoah et al., 2023; Baggia et al., 2019; Hossain et al., 2022; Nair et al., 2019) demanding sustainable business practices and transparency. Indeed, sustainability is becoming an expectation in many markets, and consumers and business customers increasingly factor sustainability into their eco-conscious purchase decisions. However, many SME owner-managers continue to be primarily motivated by economic performance rather than external stakeholder pressures (Mokonyama et al., 2022), making decisions aimed at maximising profitability and ensuring revenue growth and business viability. Nevertheless, the external cultural context often shapes how SMEs approach sustainability, as evidenced by the significant national and regional differences that have been identified (Sinyuk et al., 2021). Developed versus emerging economies, collectivist versus individualistic cultures, and other macro factors can all produce variations in how SMEs address sustainability issues (Diana et al., 2017).
5.2. Organisational context
Among the factors driving sustainability in SMEs, the leadership role played by entrepreneurial owner-managers is of critical importance (Khizar & Iban, 2022). Owners’ personal values, beliefs, knowledge and priorities determine the priority given to sustainability versus competing demands. Lack of leadership support is a major barrier. In addition, developing partnerships and networks helps SMEs gain the capabilities needed for the effective implementation of sustainability-oriented policies (Kwak et al., 2023; Obayelu, 2018; Ramasamy & Sampath, 2023). Partners such as trade associations, universities, NGOs and corporations can provide training, technology access, peer learning opportunities and other resources to build sustainability capacity. Furthermore, the existence of an organisational culture supporting sustainability values will significantly boost the adoption of such practices (Isensee et al., 2020). Finally, when the national culture is characterised by a focus on ethics, eco-consciousness, transparency and stakeholder impact, sustainability is further supported. Nevertheless, sustaining culture change initiatives often presents a major challenge.
5.3. Sustainability orientation
A proactive strategic stance facilitates the integration of environmental and social issues into business strategy and operations. Achieving this requires owner/managers of SMEs to assign accountability, set goals, allocate resources and develop appropriate systems. However, some SMEs persist in a reactive orientation, focused solely on legal compliance. Hence, they only adopt new sustainability measures when forced to by new regulations, rather than acting proactively. A strong sustainability vision would provide purpose and motivation in this respect (Hariastuti et al., 2022; Mondal et al., 2023; Pacheco et al., 2018). An inspiring vision meaningfully connects sustainability to the company’s core values and identity, and consistent communication is of crucial importance.
5.4. Technological opportunities
Investing in cleaner, more eco-efficient technologies enables SMEs to reduce the environmental impacts of their operations (Centobelli et al., 2020; Khan et al., 2023; Saunila et al., 2019). In this respect, relevant technologies include pollution control equipment, efficient production machinery, cogeneration systems, smart building controls and fleet telematics. Digital platforms such as sensors, the IoT and big data analytics facilitate the tracking, analysis and transparency of sustainability metrics (Penza, 2014; Ronaghi & Mosakhani, 2022), which in turn support performance management. However, cost concerns, a perceived lack of expertise and limited access to financing often limit SMEs’ adoption of sustainability technologies (Budinis et al., 2020; Sabandar, 2019). In consequence, many SMEs struggle to accurately assess their options and to secure funding for major capital investments (Prasad et al., 2022).
5.5. Innovation focus
SMEs can generate sustainability via innovative products, processes, business models and organisational forms (Jayashree et al., 2021; Khan et al., 2022). Other areas of interest for sustainability include the use of organic materials, resource-sharing platforms, and participation in social enterprises with a sustainability mission. However, for these innovations to flourish there must be appropriate capabilities and culture within the firm (Mondal et al., 2023), and hence leadership support for new ideas, effective collaboration, an openness to learning, and tolerance of risk and potential failure. Unfortunately, the innovation practices of SMEs often focus primarily on economic performance, with sustainability benefits viewed as being of secondary importance (Saudi et al., 2019). This dichotomy is reflected in ongoing debates and tensions between proponents of rapid business growth – despite the resulting pressure on the environment and resources – and those of sustainability.
5.6. Knowledge management
Effective knowledge management by SMEs is essential to successful sustainability initiatives (Khurana et al., 2019). Knowledge exchange with external partners provides sustainability insights (Kwak et al., 2023), while internal knowledge sharing enables and enhances implementation. SMEs often lack formal knowledge management systems, and so creative approaches are required, with the owner-manager acting as a sustainability knowledge hub (Nair et al., 2019; Yacob et al., 2019). In addition, appropriate training develops employee capabilities for sustainability practices (Sharma et al., 2023).
5.7. Assessment frameworks
Assessment frameworks, standards, guidelines and reporting mechanisms provide structures for SMEs to achieve sustainability (Kassem & Trenz, 2020; Pusnik et al., 2014; Quernheim et al., 2023; Zahoor et al., 2019). In the same context, assurance and integrated accounting practices are increasingly employed (Kassem & Trenz, 2020). In addition, sustainability rankings and awards provide them with performance benchmarks. However, the use of formal measurement tools still varies widely among SMEs (Islam et al., 2022; Rahman et al., 2017; Zhao et al., 2022), and complexity, cost and limited human resources persist as barriers to their adoption.
5.8. Sustainability practices
A wide range of practices related to operations, inputs, processes and outputs can support sustainability performance in SMEs, focusing on areas such as energy, water, materials, waste, procurement, logistics, product design, employee engagement and community initiatives (Gazi et al., 2012; Karaeva et al., 2023; Mandić et al., 2019; Qureshi et al., 2023; Tseng et al., 2023; Willenbacher et al., 2021; Yacob et al., 2019). The benefits of successful application include cost savings, risk reduction, and enhanced competitiveness, legitimacy and stakeholder relationships. Possible challenges, on the other hand, include costs, disruption and lack of expertise.
5.9. Sustainability outcomes
Actions to reinforce SME sustainability can generate positive results in economic, environmental and social dimensions. Documented sustainability benefits for SMEs include cost savings (Alena & Libor, 2012), reduced waste (Willenbacher et al., 2021), increased energy and water efficiency (Yacob et al., 2019), improved reputation (Rozak et al., 2021), increased sales and market access (Basri & Siam, 2019; Tsvetanova et al., 2022), and product and service innovation (Kwak et al., 2023; Popović-Pantić et al., 2020). However, outcomes are not uniformly positive across SMEs, because of variations in practices and contexts, and questions remain about potential tensions between sustainability and economic performance objectives. Accordingly, further research is needed on the results of sustainability-focused actions, on the trade-offs made and on measuring the performance achieved.
5.10. SME sustainability
In summary, various factors related to the external environment, organisational characteristics, orientation, technology, innovation, knowledge, assessment tools, and industry practices must be considered if SMEs are to improve their sustainability profile and outcomes. Significant barriers persist, and progress varies greatly among different companies. More research is needed on how SMEs can effectively balance business growth, profitability and sustainability.
6. Discussion
This systematic literature review provides valuable insights into the use of technology by SMEs to achieve sustainable development goals. The findings emphasise the importance of external pressures, leadership commitment and organisational culture in driving SMEs’ adoption of these goals. The use of technologies such as cloud computing, fintech and Industry 4.0 enables SMEs to improve their competitiveness and environmental performance. However, challenges such as limited financial resources, lack of expertise and high costs can hinder technology uptake. Moreover, innovation and knowledge management often play a crucial role in driving sustainability initiatives. Assessment frameworks and sustainability practices can be employed to support the implementation and measurement of sustainability efforts. The positive outcomes of sustainability initiatives for SMEs include cost savings, efficiency gains, waste reduction, improved reputation and increased market access. However, tensions between sustainability and economic goals persist in this sector. Therefore, future research should focus on balancing business growth, profitability and sustainability in SMEs. The following conclusions can be drawn from our synthesis of the literature in this field:
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External pressure from stakeholders is a factor driving the adoption of sustainability, but economic considerations remain the primary motivation for SMEs. Leadership commitment and organisational culture facilitate the integration of sustainability within the organisation.
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Technologies such as cleaner production, digital platforms, IoT sensors, automation and cloud computing provide opportunities to monitor, analyse and reduce environmental impacts. However, costs, expertise barriers and perceived risks constrain adoption.
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SME innovation plays a crucial role, and product, process, business model and marketing innovations all contribute to the firm’s ability to meet its sustainability objectives. Success is also facilitated by effective knowledge management, in both internal and external networks.
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Assessment tools such as standards, metrics and timely accurate reporting enable sustainability measurement and transparency. However, their complexity limits widespread adoption by SMEs.
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Sustainability-related practices, in areas such as energy consumption, materials, logistics, procurement, waste management and community engagement can produce tangible sustainability benefits, but also involve trade-offs.
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The potential benefits from effective policies in this area include cost savings, efficiency gains, waste reduction, reputation enhancement, new revenues and improved stakeholder relationships. Nevertheless, tensions between sustainability and economic goals persist for many SMEs.
Overall, while progress is evident, SMEs still face significant challenges in fully transitioning their business models, cultures and systems to embed sustainability. Research gaps remain regarding how to effectively balance business growth with environmental and social sustainability.
The integrated theoretical framework developed from our thematic analysis provides a foundation for future research. Quantitative hypothesis testing focused on specific relationships in the framework would yield further insights. Comparative case studies exploring the sustainability journeys of SMEs in different sectors and countries could reveal best practices. Action research partnerships with SMEs to implement and evaluate technology-enabled sustainability initiatives would produce practical recommendations.
This systematic literature review contributes a comprehensive, reliable overview of current knowledge on the intersection of technology adoption and sustainability for SMEs. The findings and proposed framework offer a valuable resource for further study in areas such as information systems, sustainability, innovation and entrepreneurship. For practitioners, the review reveals insights that SMEs can apply to leverage technologies enabling them to enhance business resilience, competitiveness and eco-consciousness. Sustainability is an imperative for all businesses; understanding how SMEs can effectively harness emerging technologies to drive sustainability is and will continue to be an important avenue for researchers and practitioners. For policymakers, the review showcases opportunities to support SMEs in this respect, through incentives, infrastructure development, training programmes and public-private partnerships focused on sustainability technologies and innovation. Such measures are urgently required as many SMEs lack awareness, expertise and resources to effectively capitalise on digital solutions. Targeted initiatives that lower barriers and demonstrate sustainability benefits would greatly accelerate the adoption of these measures. In view of the economic importance of SMEs, investments to enhance their environmental and social performance would generate significant public value.
This review is subject to certain limitations, but these also highlight useful areas for future research. First, the search was restricted to English-language publications, excluding potentially valuable literature in other languages. Second, most of the SMEs in our sample operate in the manufacturing sector, with less representation of service industries. There are significant differences between these areas, and so further research focusing more on the services context would be a valuable complement to the present study. Third, our review does not consider literature on SME sustainability issues unrelated to technology use, although other fields of research could provide useful information for comparison. Finally, the qualitative synthesis approach, while rigorous, relies on interpretation in identifying themes. This inevitable subjectivity means that other scholars might code the data differently.
This review represents an invaluable knowledge base for stakeholders in diverse fields, including academia, industry, government and civil society, thereby contributing to advancing sustainable development. The insights gained provide a multifaceted understanding of the obstacles involved, of enablers and of the potential to leverage technologies, from production automation to cloud platforms, as catalysts for SMEs to transform themselves into socially and environmentally conscious enterprises. Operationalising sustainability remains a complex challenge that requires persistent research, thoughtful practice and cross-sector collaboration. The aim of this review is to impel progress towards greater sustainability by offering a comprehensive reference map of existing knowledge and uncharted frontiers.
7. Practical implications
The study findings have significant implications for practitioners, policymakers and educators involved in promoting sustainability and technology adoption among SMEs. For practitioners, our research underscores the critical role of technology integration in enhancing sustainability efforts. SME leaders should prioritise the adoption of key technologies such as cloud computing, the Internet of Things and data analytics to improve operational efficiency and environmental performance. Developing a clear sustainability vision aligned with business goals, and integrating it into all aspects of operations is of crucial importance. Collaboration and networking with other businesses and institutions can help SMEs overcome resource constraints and access essential knowledge and capabilities. Investing in training programmes to enhance employee capabilities in sustainability practices and digital technologies is a vital measure to address the skills gap identified in our study.
Policymakers should develop targeted support programmes for SMEs seeking to adopt sustainable technologies. These could include financial incentives such as grants, tax breaks or low-interest loans to help SMEs overcome financial barriers. It is also necessary to invest in digital infrastructure and to create a balanced regulatory environment that encourages sustainable practices without overburdening SMEs. Facilitating knowledge-sharing platforms can enable the exchange of best practices between SMEs, larger corporations and research institutions.
Educators play a key role in preparing future SME leaders. Integrating the consideration of sustainability and digital technology into business and entrepreneurship curricula is essential. Measures such as developing hands-on training programmes, using real-world case studies and collaborating with industry can provide students with practical skills in sustainable business practices and technology management. Moreover, executive education programmes for current SME owner-managers would help address the ongoing need for knowledge updates in this rapidly evolving field.
By addressing these implications, stakeholders can contribute to creating an ecosystem that supports SMEs in their journey towards sustainable and technologically advanced operations. This, in turn, can contribute to achieving broader sustainability goals and economic development, as highlighted in our findings on the potential impact of SMEs on achieving the Sustainable Development Goals.
8. Conclusion
In conclusion, the use of technology by SMEs to achieve sustainable development is a critical area of research and practice. The systematic literature review we describe provides a comprehensive overview of the current knowledge on this topic. Its findings highlight the key elements and relationships that influence SMEs’ adoption of technology for sustainable development. The theoretical framework developed on the basis of the review offers a guide for future research and practice. Despite challenges and tensions, SMEs can make use of technological solutions to drive sustainable development. Policymakers, practitioners and researchers should collaborate to support SMEs in leveraging technology for sustainable business practices and thus contribute to achieving the SDGs.
Funding
This work was supported by the AUDA Foundation [Project AUDA-2023].