The digital transformation of SMEs: opportunities and challenges for sustainability reporting in Romania

PurposeThis study aims to examine the impact of digital transformation on the sustainability reporting of Romanian small- and medium-sized enterprises (SMEs), focusing on environmental sustainability objectives.Design/methodology/approachThe hypotheses were validated using a quantitative survey of SMEs and structural equation modeling.FindingsDigital technologies create opportunities for collecting and analyzing sustainability data; however, SMEs face challenges such as limited resources, insufficient technological expertise and regulatory uncertainty.Practical implicationsThe findings offer decision-makers and SME managers valuable insights into integrating digital technologies to enhance sustainability reporting and emphasize the need for financial and technical support.Originality/valueThis study contributes to digital transformation and sustainability reporting research in SMEs, focusing on the underexplored Romanian context.