Aug 2026· Sustainability· 0 citations· 104 references
Abstract
Digital innovation has become a key enabler of the circular economy, yet existing research on SMEs remains fragmented across technological, organizational, and institutional perspectives. This study addresses this gap through a bibliometric analysis and systematic literature review of 87 peer-reviewed articles published between 2017 and 2025. The review synthesizes the evolution of digital research, identifies its theoretical foundations, key barriers, enabling factors, and performance outcomes, and develops a multi-level conceptual framework linking micro-, meso-, macro-, and ecosystem-level perspectives. The findings suggest that successful digital innovation-enabled circular transformation depends on the interaction of digital capabilities, organizational resources, institutional support, and stakeholder collaboration. The study further reveals that financial constraints, limited digital capabilities, and weak institutional support remain major barriers, whereas Industry 4.0 technologies, leadership commitment, and ecosystem collaboration serve as critical enablers. By integrating fragmented theoretical perspectives into a coherent framework, this review advances the understanding of digital adoption in SMEs and provides a structured research agenda together with practical implications for managers and policymakers seeking to accelerate sustainable digital transformation.
This systematic literature review explores the relationship between digital maturity and economic sustainability, with government support as a moderating factor, and proposes a multi-level conceptual framework and actionable policy recommendations to support inclusive and adaptive SME digitalization.
Bisri Bisri· Dinasti International Journa...· 0 citations
Digital transformation has come to the fore as a pivotal force behind corporate green innovation in the digital economy. Although previous research has documented that digital transformation can promote green innovation, the underlying organizational mechanisms remain theoretically fragmented. Moreover, the external conditions that shape the effectiveness of this relationship are not yet fully understood. To address these gaps, we develop an integrated analytical framework anchored in Organizational Information Processing Theory (OIPT) and the Resource-Based View (RBV). This framework explains how digital transformation promotes green innovation through two complementary organizational mechanisms—resource investment and technology application—and incorporates the moderating role of digital infrastructure. Using panel data on Chinese A-share-listed firms covering 2015–2024, this study examines the proposed relationships through a Bidirectional Fixed Effects Model, mediation analysis, and moderation analysis. The findings demonstrate a significant positive association between digital transformation and green innovation. This effect is partially mediated by increased R&D(Resource and Development) investment and deeper digital organizational embedding, which constitute complementary pathways reflecting resource investment and enhanced resource utilization, respectively. Additionally, digital infrastructure positively moderates this relationship by providing a more supportive external digital environment. This study enriches the existing literature by synthesizing previously dispersed perspectives on mechanisms into an OIPT-RBV framework, offering a more comprehensive account of how and under what circumstances digital transformation facilitates green innovation. Our findings also carry practical implications for managers seeking to strengthen innovation capabilities and for policymakers aiming to advance digital infrastructure and firms’ sustainable development.
The review reveals that both endogenous and exogenous factors jointly propel the transformation process, and at the macro level, digital transformation facilitates industrial upgrading and regional innovation; at the micro level, it improves firm innovation performance and governance efficacy.
Lanlan Ma, Weiting Liang· Economics & Business Man...· 0 citations
Digital transformation can help firms put circular-economy practices into operation. Existing studies often discuss technical tools and implementation practices separately. Few studies explain the organizational logic that connects the two. This systematic review identifies 146 peer-reviewed English-language journal articles published from January 2015 to June 2026. The review follows PRISMA 2020. It examines how digital technologies support circular-economy adoption at the firm and organizational levels. Industry and supply-chain levels are also included. The evidence points to three core mechanisms. The first is information transparency. The second is resource-efficiency optimization. The third is circular business-model innovation. Their effects depend on internal green and digital capabilities. Supply-chain coordination and external institutional pressures also change how these mechanisms work. Environmental outcomes receive the most consistent empirical support. Operational and social outcomes depend more strongly on context and innovation and economic outcomes are also context-dependent. This review integrates dynamic capabilities theory with the natural-resource-based view and institutional theory to distinguish internal capability development from external constraints. The resulting framework links mechanisms with boundary conditions and outcomes while identifying priorities for longitudinal research, comparative research and improved outcome measurement.
Wen-Bin Su, Woojin Yoon· Journal of Theoretical and A...· 0 citations
Industrial symbiosis (IS) and digital industrial symbiosis (DIS) are widely advocated as essential strategies for furthering circular economy (CE) goals within the European Union; yet empirical evidence about the preparedness of small and medium-sized firms (SMEs) to use these methods is still scarce. This study investigates the organizational, technological, and perceptual aspects influencing SMEs’ preparedness to adopt IS and DIS, emphasizing digital maturity, perceived benefits, barriers, and the institutional support conditions. A convergent mixed-methods methodology was employed, combining qualitative thematic analysis of semi-structured interviews with SMEs and intermediary organizations, alongside quantitative data from a structured survey conducted across various European countries. The study examined the relationships between adoption readiness and digital maturity, perceived benefits, barriers, and institutional support conditions, while qualitative insights offered further contextual comprehension of trust, governance, and implementation conditions. The findings indicate that digital maturity and perceived benefits are the primary determinants of adoption readiness, but perceived barriers and institutional support predominantly influence implementation feasibility rather than initial willingness. This study differentiates between motivational readiness and structural feasibility, thereby enhancing adoption models and offering insights for policymakers, intermediaries, and practitioners involved in the design of digital industrial symbiosis platforms and SME support instruments.
Valerij Dermol, Špela Dermol· Human Systems Management· 0 citations
A systems-based and process-oriented framework explaining how organizational factors translate into digital readiness in small firms is developed and Project Management Capability is positioned as the critical link between organizational factors and digitally enabled competitive advantage in small firms.
Marina Proença, C. D. dos Santos, A. Toaldo et al.· Systems· 0 citations
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