Uncovering Pathways to Sustainable SME Growth in Developing Economies. A Systematic Review of Digitalization Strategies
Katumba Ismael *
Makerere University Business School, University of South Africa, South Africa.
Kato Ahmed Idi
University of South Africa, South Africa.
Evelyne Chilonge
University of South Africa, South Africa.
*Author to whom correspondence should be addressed.
Abstract
This study systematically reviews how digitalization strategies and Triple Bottom Line (TBL) practices influence the sustainability of Small and Medium Enterprises (SMEs) in developing economies. While prior research has examined digital transformation or sustainability independently, limited attention has been given to their integrated effects within developing country contexts. Following the PRISMA 2020 protocol, 113 records were identified from Science Direct, Web of Science, Scopus, and Google Scholar, with 20 peer-reviewed studies (2017–2024) meeting the final inclusion criteria. The results show that operational digitalization particularly ICT adoption, digital platforms, and process automation, emerges as the most influential form of digitalization, consistently linked to improved economic resilience, enhanced environmental performance (e.g., reduced carbon emissions and resource efficiency), and strengthened social sustainability through innovation and stakeholder engagement. Across the reviewed studies, digital tools improved SME competitiveness, operational efficiency, and market responsiveness, while TBL integration enhanced long-term performance by aligning financial outcomes with environmental stewardship and social responsibility. Approximately 70% of the reviewed empirical studies reported a statistically significant positive relationship between digital adoption and sustainability outcomes, whereas a minority highlighted risks associated with digitalization without strategic capability alignment. Theoretically, this review advances sustainability and SME literature by integrating digitalization and TBL perspectives into a unified conceptual understanding tailored to developing economies. It extends existing frameworks by demonstrating that digital transformation functions not merely as a technological upgrade but as a multidimensional enabler of economic, environmental, and social value creation in resource-constrained contexts. The novelty of this research lies in providing the first PRISMA-guided synthesis that explicitly connects specific forms of SME digitalization with triple bottom line sustainability outcomes in developing economies. The study offers actionable insights for policymakers and SME managers seeking context-sensitive digital sustainability strategies and identifies key gaps for future empirical investigation.
Keywords: Small and medium enterprises, PRISMA, flexibility, triple bottom line, digitalization, systematic literature review