FROM ANALOGUE TO DIGITAL: HOW PROCESS TRANSFORMATION SHAPE THE SUSTAINABILITY FOR SMALL AND MEDIUM SIZE ENTERPRISES IN THE CITIES OF DOUALA AND YAOUNDE, CAMEROON

Abstract

Digital transformation is reshaping business environments worldwide, yet empirical evidence on its effects within African emerging economies remains sparse. This study examines the influence of process transformation on the sustainability for Small and Medium sized Enterprises (SMEs) in the cities of Douala and Yaoundé, Cameroon. Grounded in the Resource-Based View (RBV) and the Triple Bottom Line (TBL) framework, and guided by dynamic capabilities theory, the study employs a causal research design drawing on primary data from 380 SME managers selected through stratified random sampling. Ordinary least squares (OLS) and seemingly unrelated regressions (SUR) were applied to test the hypothesised effects across composite and disaggregated sustainability outcomes. Results reveal that process transformation exerts a positive and highly significant influence on overall sustainability (β = 0.458, p < 0.01), with consistent effects across Douala (β = 0.472) and Yaoundé (β = 0.420). Disaggregating by TBL dimension, process transformation significantly improves economic (β = 0.413), social (β = 0.342), and environmental sustainability (β = 0.482), all at the 1% significance level. Environmental sustainability records the strongest effect, suggesting that process digitalisation carries important ecological co-benefits for urban Cameroonian SMEs.