Abstract

Sustainability through digital transformation is essential for contemporary businesses. Embracing sustainability, micro-, small-, and medium-sized enterprises (MSMEs) can gain a competitive advantage, attracting customers and investors who share these values. Moreover, incorporating sustainable practices empowers MSMEs to drive innovation, reduce costs, and enhance their reputation. This study aims to identify how owners or senior managers of MSMEs can initiate a sustainable digital transformation project. A systematic literature review was carried out, including 59 publications from 2019 to 2023. As a result, this research identifies the first steps owners of MSMEs can take to begin the transition by identifying critical organizational capabilities necessary for successful transformation, explores the technologies that can support MSMEs in their sustainability goals, and emphasizes the significance of stakeholders in achieving a successful digital transformation journey. Firstly, owners or senior managers should change the organizational culture to support decisions and strategies focus on sustainability. Secondly, the leading role of stakeholders is in the innovation process that allows businesses to be more competitive locally and globally. Finally, big data is the technology that can provide the most significant benefit to MSMEs because it will enable analyzing data of all kinds and contributes disruptively to decision-making.