Resource‐Centered Transformation Paths

The Role of Digital Transformation in Optimizing SME Resources for Sustainable Entrepreneurship

Bibliographic Data

ID22418524
AuthorsNasser Hadi Alajmi (0000-0002-5280-4428, Faculty of Business and Management, Department of Management and Marketing University of Innsbruck Innsbruck Austria, corresponding author)
Year2026
Volume35
Issue5
Pages7581-7603
Publication date2026-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueBusiness Strategy and the Environment (JOURNAL)
Journal identifiersISSN: 0964-4733 • E-ISSN: 1099-0836
PublisherWiley (PUBLISHER • GB)
DOI10.1002/bse.70535
OpenAlexW7125236672
LanguageEN
Citations received1
References cited133

The critical role of small and medium‐sized enterprises (SMEs) in driving economic growth through employment generation and innovation cannot go unseen, especially the efforts of small firms in promoting sustainable entrepreneurship. With more market and consumer focus on sustainability and the shift toward eco‐friendly products, SMEs can successfully navigate these changes through digital transformation (DT). Therefore, this study systematically reviews how DT enables SMEs to achieve sustainable entrepreneurship through resource optimization. Grounded in dynamic capability theory (DCT), the review investigates how DT tools and techniques influence SMEs' capability building processes. Technologies such as artificial intelligence, the Internet of things, blockchain technology, big data analytics, and cloud computing reshape how SMEs sense opportunities, seize digital solutions, and reconfigure their resources to pursue sustainability objectives. Using two leading databases, the study synthesizes 80 peer‐reviewed articles published between 2010 and 2025. The findings reveal that DT enhances five key resource domains: organizational, human, financial, technological, and social by transforming them into dynamic capabilities (DCs) that drive environmental, social, and economic sustainability. Building on these insights, the paper introduces the Resource‐Centered Transformation Path (RCTP) framework. A framework conceptualizes how DT enables SMEs to optimize static resources into adaptive and sustainability‐oriented capabilities. The framework extends DCT by integrating digitalization mechanisms within its foundations and by identifying digital technologies as key enablers of resource optimization, leading to transformative sustainable outcomes. Overall, the study contributes to advancing theoretical and practical understanding of how DT empowers SMEs to evolve from resource‐constrained enterprises into sustainability‐driven organizations.

Digital transformation · Dynamic Capabilities · Entrepreneurship · Resource Efficiency · Sustainability · Sustainable development · Transformative learning · Collaboration in agile enterprises · Digital Transformation in Industry · Entrepreneurship Studies and Influences

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