Digital and Sustainable (Twin) Transformations: A Case of SMEs in the European Union

Abstract

In the European Digital Decade 2030 Policy Program, the following guidelines for European digital transformation are named, which means that more than 90% of small- and medium-sized companies reach at least a basic level of digital intensity. In addition to that, the European Commission pays a lot of attention to implementing the “Green Deal” in order to achieve less environmental impact. ICT SMEs already play a key role in Europe’s green and digital transformation, creating technologies that promote sustainability and strengthen Europe’s position. The limited and fragmented application of today’s digital and sustainable technologies in SMEs is observed at the EU level. The bibliometric literature analytical results show that the number of papers on the digital direction is five times higher than on the sustainable direction topic. The paper seeks to identify directions that could help SMEs to speed up this twin transformation in each EU country. The authors proposed a two-stage methodology, which is used for researching twin transformations in SMEs. According to the methodology, first, the authors analysed the indicators of EU-27 SMEs, representing their activity towards the twin transformation, comparing them among other size classes. The results show that the SME’s numbers in the 16 indicators area are worse than the numbers characterizing EU-27 enterprises, having more than ten employees. In addition, a multi-criteria decision making-based assessment framework was constructed to show the progress towards the twin transition. The provided research shows which areas require more attention from SMEs and policy makers responding to the twin transformation objectives.

A Spotlight on Environmental Sustainability in View of the European Green Deal

“…It spotlights the crucial role of small and medium-sized enterprises (SMEs) in leading the progress to an economy with sustainable direction, which aligns with the demanding goals of the European Green Deal. Digitization and technological transition go hand in hand and are equally of utmost importance as sustainability actions, as confirmed by other research [18][19][20].…”

The Digital Evolution Strategies for Overcoming Cybersecurity and Adoption Challenges in French SMEs

“…Studies frequently reveal that SMEs incorporating cybersecurity into their digital transformation strategy perform better in risk management, resilience, and operational reliability. Research emphasizes various beneficial strategies, such as building a comprehensive IT governance framework that corresponds with company goals and continuously adapting cybersecurity measures to stay up with technological developments [18]. This governance framework is critical because it provides a disciplined way to incorporate cybersecurity into all parts of digital operations, ensuring that security considerations are entrenched throughout the technology adoption and deployment process.…”

“…An in-depth understanding of the complex relationship between human and technical systems, adapting business strategies, dealing with ever-changing labor markets, and creating value in various industries play a crucial role for SMEs to fully maximize the effectiveness of their digital tactics [17]. Such initiatives result in higher productivity and decreased costs; with automation and digitization, SMEs can enhance customer satisfaction, expand profitability, and establish a more competitive market position [18]. Cybersecurity has evolved as an essential component of digital transformation, especially as SMEs gradually integrate digital technologies into their operations [19].…”