SUSTAINABLE DIGITAL TRANSFORMATION IN MSMES: A SYSTEMATIC REVIEW OF DRIVERS, CAPABILITIES, AND TRIPLE-BOTTOM-LINE OUTCOMES

Abstrak

Sustainable digital transformation (SDT) has emerged as a strategic imperative for micro, small, and medium enterprises (MSMEs), reflecting the convergence of digitalization and sustainability agendas. This systematic literature review synthesizes research on the drivers, organizational capabilities, mechanisms, and outcomes of SDT in MSMEs. The review identifies regulatory, market, technological, and socio-cultural drivers, with variations across firm sizes. Key organizational capabilities—digital literacy, leadership, collaboration, innovation, and resource orchestration—enable MSMEs to align digital transformation with sustainability objectives. Mechanisms such as AI, IoT, cloud computing, and blockchain link digitalization to triple-bottom-line outcomes, while contextual moderators such as leadership tenure and regulatory environments shape their effectiveness. The findings reveal economic benefits (efficiency, market expansion), environmental gains (eco-efficiency, waste reduction), and social impacts (inclusivity, workforce empowerment), alongside trade-offs including financial strain, operational complexity, and risks of greenwashing. Methodological strengths include diverse empirical approaches, yet limitations persist regarding generalizability, longitudinal evidence, and gendered perspectives. Theoretical integration of the Resource-Based View, Dynamic Capabilities, and Institutional Theory provides a holistic framework for understanding SDT in MSMEs. The study concludes with practical recommendations for SMEs and policy implications for enabling resilient and sustainable competitiveness.