Sustainability and Innovation in SMEs: A Systematic Literature Review
Abstract:
Research Purpose: The paper analyses management and integration practices of innovation and sustainability in European Small and Medium Enterprises SMEs. Through a systematic literature review, this research aims to understand the trends, approaches, and challenges European SMEs face regarding innovation and sustainability.
Design / Methodology / Approach: This study is the outcome of a systematic literature review conducted between March and October 2024, utilizing Scopus as a database. A total of 483 articles in English were analyzed, and considering the inclusion criteria, 99 studies were identified and reviewed as the final body of literature. The authors synthesize existing knowledge into six themes: Eco-innovation, innovative practices, sustainability practices, CSR, CE, and Educational eco-innovation programs.
Findings: The study enriches the academic discourse by clarifying the interplay between sustainability and innovation in European SMEs through a thematic synthesis of recent empirical evidence. These findings highlight key considerations for business managers in implementing business models and management tools and adhering to training programs that include the issues in the company vision.
Originality / Value / Practical implications: The literature analysis revealed the need for SME management to integrate sustainability into the corporate culture and adopt innovative digital practices. The SMEs play an outstanding role in the general success of sustainability and are often an important driver of innovations. Nonetheless, the diversity of SMEs makes it difficult to get clear advice on how this important part of our industries acts in practice. Our findings suggest a holistic approach to sustainability and innovation that flows into an interconnected ecosystem to create a complete picture that goes beyond the adoption of individual practices. Our model confirmed the contributions of previous literature, according to which innovation and sustainability represent the perfect combo for following market trends and the vision of European legislation in recent years.
