THE IMPACT OF DIGITAL TRANSFORMATION AND SUSTAINABILITY IN SMALLAND MEDIUM ENTERPRISES: A COMPREHENSIVE ANALYSIS

Abstract

Small and Medium Enterprises (SMEs) are vital to the global economy, contributing significantly to employment, innovation, and economic growth. As technological evolution accelerates and environmental concerns intensify, SMEs are increasingly integrating digital transformation and sustainability into their core strategies. This study explores the interplay between digitalization and sustainable development in SMEs, examining key drivers, adoption challenges, and organizational outcomes. A mixed-methods approach was used, combining survey data from 212 SMEs and qualitative interviews from 15 cases across diverse sectors. Findings reveal that technological advancements, regulatory pressures, and market demands are primary drivers of sustainable digital transformation.  This research provides actionable insights and proposes a practical framework to support SMEs in aligning digital and sustainability strategies