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Cited by 122Digital Economy and TransformationEnvironmental Sustainability in BusinessSustainability and Innovation in Business

Is digital transformation the Deus ex Machina towards sustainability transition of the European SMEs?

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Chatzistamoulou, Nikos·2023·Ecological Economics
DOI 10.1016/j.ecolecon.2023.107739
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Abstract

The 2030 Digital Compass aligned with the European Green Deal prioritize transparency through the digital transformation of the European SMEs paving the way to a more sustainable production paradigm. Thus, a twin transition is in motion facilitated by the New Industrial Strategy supporting the adoption of green business strategies across industrial ecosystems. This paper investigates whether the digital transformation and the decision to participate in public procurement as a transparent external funding source support adoption of business actions fostering sustainability transition. Data over more than 20,000 SMEs in the EU-28 over the period 2015–2019 complemented by country-specific attributes towards sustainability and institutional business environment are combined. Econometric results indicate that digital transformation fosters sustainability transition. Although participation in public tenders exerts a positive and systematic effect on the adoption of a sustainability supporting strategy, the two decisions appear independent indicating that SMEs are determined to shift the production paradigm irrespectively. Business operational problems affect but not deter sustainability transition. Business corruption in countries of low levels of sustainability impedes sustainable business actions, yet evidence favors higher transparency. The latter highlights the necessity towards building a coherent although adaptable institutional framework. This study contributes to SDGs 7, 12, 13 and 16.

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  • Digital innovation supports the transition to SME sustainability, and public procurement is an external factor that can facilitate funding and adoption of sustainable strategies.

    “digital Innovationinnovation in supporting the transition to SME sustainability and highlighting the importance of public procurement as an external factor that can facilitate funding and adoption of sustainable strategies.”

    From Innovation as A Driver of SMEs Sustainability: A Systematic Review of the Literature (2025) · cites this paper as Chatzistamoulou, 2023

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Authors
Chatzistamoulou, N.
Affiliations
University of Patras (GR)
Corresponding author
Chatzistamoulou, Nikos
ORCID
Chatzistamoulou, Nikos
Venue
Ecological Economics
Publisher
Elsevier BV
Published
2023-04
Volume
206
Pages
107739
ISSN
0921-8009 (ISSN-L)
DOI
10.1016/j.ecolecon.2023.107739
OpenAlex
W4315926617
Cited by
122
References
2
Citations by year
2026: 18 · 2025: 49 · 2024: 38 · 2023: 17
FWCI
26.31
Type
journal article
Language
en
Open access
Licence
Locations
  • Ecological Economics (publishedVersion, cc-by-nc-nd)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Social Science Open Access Repository (GESIS – Leibniz Institute for the Social Sciences) (submittedVersion, cc-by-nc-nd)
Funders
Hellenic Foundation for Research and Innovation (01216)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Economy and Transformation
  • Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Sustainability and Innovation in Business
Keywords
digital transformation, sustainability transitions, small and medium-sized enterprises, public procurement, green business strategy, transparency, corporate corruption, European Green Deal, sustainable production, European SMEs

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