Small- and Medium-Sized Enterprises: Trends and Future Perspectives for Sustainability and Digitalization in Germany

The objective of this research was to provide a review of the state-of-the-art literature related to sustainability and digitalization in SMEs to identify current trends and future perspectives within this vital sector. The focus is on German SMEs, which are considered benchmarks, given these firms' critical role in the country's economy and job market. A total of 55 peer-reviewed articles were analyzed with the support of the Atlas TI 24.1 software package, focusing on definitions, frameworks, research questions, hypotheses, primary findings, and direct reports from interviewees. Major current trends were identified, clustered in two groups: (1) digitalization, digital transformation, Industry 4.0, and performance; and (2) sustainability, innovation, entrepreneurship, and risk management. Three future perspectives were identified: disseminating digitalization in the market; incorporating sustainability into business models; and increasing investments in government support programs. While the study is focused on German SMEs, its findings are applicable to similar economies within the European Union and can serve as a reference for developing countries' sustainable development goals (SDGs). This research advances knowledge on how SMEs play a critical role in the context of sustainability and digitalization, both now and in the future.