PurposeThe paper aims to look at small to medium‐sized enterprises' (SMEs') approach to learning and innovation.Design/methodology/approachThe first research direction focuses on the internal and external sources for learning used in the innovation process. A second research direction focuses on the main types of innovation SMEs engage in along with some of the obstacles or constraints identified within the innovation process. In order to answer the research questions set, the authors conducted a survey among 161 Romanian SMEs from various economic sectors and covering different geographical areas.FindingsRomanian SMEs display a learning orientation related to innovation, using best practices within the organization and networking with external partners as internal sources for learning, whereas in terms of external support for learning, SMEs consider changes that take place on the market, changes in technology and the input from experts and consultants. Concerning the innovation type, Romanian SMEs are very much oriented towards innovation in their business model, at the same time being faced with various constraints such as lack of funds and high costs involved.Practical implicationsFirstly, in what concerns the organizational learning dimension, the need for SMEs to focus on strengthening the collaboration with universities (higher education area), as the research pointed out that only few SMEs rely on universities and educational institutions in acquiring knowledge. Secondly, to focus on innovation and manage innovation activities as a core competency inside the firm in relation to designing a process of organizational change in SMEs, which should enhance drastically the performance of such initiatives.Originality/valueSo far, few studies have been conducted on innovation and knowledge creation in South‐Eastern European SMEs. The findings presented in the paper offer a holistic view of the innovation approach in Romanian SMEs, emphasizing the predominant type of innovation implemented along with specific constraints applied. The originality of the paper also relates to the fact that few studies conducted in Romania on SMEs focus on the internal and external sources of knowledge in the innovation process.

The sustainable consumption and integration of digital solutions with respect to sustainable consumption have been encouraged by the new European circular economy action plan. Digital adoption has been accelerated by the COVID-19 pandemic; companies have been challenged to rapidly adapt to the constant evolution of consumer needs and expectations, leading to valuable insights into the advancement of green business practices and a consequent rethinking of their business model. The purpose of this paper is to investigate the major shifts in sustainable consumer behavior on the Romanian retail market within the context of the Green European Deal, and retailers’ priorities in agilely adapting to these significant evolutions. Based on a comprehensive literature review on these major shifts and significant evolutions at the national and international levels, a quantitative study was carried out to evaluate the Romanian retail market and identify the major challenges faced by retailers in dealing with the new set of priorities. The data collection was conducted via a survey used in the retail environment, applied within a Romanian supermarket chain. The Romanian retail sector has a particular configuration, which may have an impact upon the study’s generalizability. Located in Central and Eastern Europe at the crossroads of the EU, the Commonwealth of Independent States (CIS), and the Middle East, Romania is a leading destination for foreign direct investment, and it is recognized for the similarities of its distribution and sales channels, the range of its retail outlets, and the local retail market dominance on the Big Box segment by reputed major retailers. A spectacular evolution is recorded in Romania’s e-commerce market, including from the point of view of the long-standing and memorable traditional relationship between Romania and China which was confirmed more recently by Romanian consumers who prefer to buy online from stores in China. Our consumer research provides retailers with deep consumer insights with regard to their priorities in their agile adaptation. According to our research, Romanian consumers are environmentally concerned consumers, displaying an increased awareness about the important role they play with respect to impacting sustainable production and consumption by adopting green purchase behavior. Our study also points to the fact that retailers, although faced with challenges in targeting consumers with customized messages to reinforce their brand perception on sustainability issues, do pay considerable attention to sustainability as a personal value embraced by consumers and are willing to focus on digitizing their business processes to enable new, sustainable business models.

Summary Small enterprises make up for at least 95% of the enterprises in the European