Digitalization in stages: advancing sustainability reporting in SMEs through a maturity-based adoption model
Pasupula Sivaiah, A. Vinodan
Abstract
Purpose How can small and medium-sized enterprises (SMEs) effectively digitalize their sustainability reporting processes through a structured, maturity-based adoption model? The purpose of this study is to provide a clear roadmap for advancing sustainability reporting capabilities in alignment with digital transformation. Design/methodology/approach This study builds on a systematic literature review of 32 research publications indexed in Scopus, comprising 22 journal articles and 10 conference papers published between 2014 and 2024. This study employed an inductive thematic analysis process to develop a conceptual model. Findings The study identified a four-stage digital maturity model that helps progress enterprises in the digitalization of sustainability reporting, such as initiation, development, integration and optimization. A coding framework was established to categorize the literature into three themes: digital transformation and maturity models, organizational enablers and resource capabilities, and external pressure and sustainability compliance. The model demonstrates that digital advancement enhances sustainability disclosures’ accuracy, efficiency and strategic value. While larger firms typically progress more rapidly, SMEs often face barriers such as limited resources and technological capabilities. Research limitations/implications This study offers a conceptual framework for understanding the digitalization in sustainability reporting; it is limited by its theoretical nature and lack of empirical validation. Further empirical research is needed to validate the framework across different enterprises sizes, sectors and geographies. Practical implications The maturity model serves as a diagnostic tool that enterprises can use to assess their current stage of digital maturity and identify areas for improvement. Social implications The study provides a new model for understanding digital transition in sustainability reporting, which advances the theoretical disclosure by proposing a novel approach to understanding the integration of digital tools in sustainability reporting practices. Originality/value This conceptual approach enables the development of theoretical foundation for future empirical research and provides a practical guide for enterprises and policymakers seeking to advance sustainability reporting through digital transition.