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Balancing act or two roads to travel

Evaluating the trade-offs between digitalization and net zero innovation in SMEs

Bibliographic Data

ID14868355
AuthorsEffie Kesidou (0000-0002-5729-8624, University of Leeds, corresponding author), Anastasia Ri (0009-0008-1563-6032, Aston University), Stephen Roper (0000-0002-9702-8696, University of Warwick)
Year2026
Volume66
Issue2
Pages797-826
Publication date2026-02-01
Open AccessYes
TypeARTICLE
VenueSmall Business Economics (JOURNAL)
Journal identifiersISSN: 0921-898X • E-ISSN: 1573-0913
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11187-025-00998-4
OpenAlexW4406594099
LanguageEN
References cited96

As firms face the dual challenges of digitalization and net zero innovation to combat climate change, understanding how these twin transitions relate is crucial. This study examines potential synergies or trade-offs between digital technologies and net zero innovations in UK SMEs. By integrating the Resource-Based View (RBV) and the Attention-Based View (ABV), we explore how categories of digital adopters relate to categories of net zero innovation adopters. Utilizing novel survey data for 964 UK SMEs, we employ ordered Probit estimation to examine the relationship between digital and net zero adoption. Our results reveal that digitally advanced SMEs are more likely to be advanced adopters of net zero innovations, suggesting that digital complementarities and enhanced capabilities can reinforce environmental innovations that reduce carbon emissions. We offer valuable contributions for both theory and practice, highlighting the importance of supporting SMEs in their twin transitions

Business · Entrepreneurship · Industrial organization · Net (polyhedron · Transport engineering · Zero (linguistics · Digital Platforms and Economics · Engineering · Innovation and Knowledge Management · Innovation Diffusion and Forecasting · Mathematics · Finance

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