Driving the twin transition in emerging markets: the mediating role of strategic management in the digital adoption–green nexus

What is it about?

Small and medium-sized enterprises (SMEs) in Latin America are increasingly adopting digital tools, but this does not automatically lead to "green" success. By analyzing data from over 5,300 firms in eight countries, this study found that while most SMEs already have a strong digital presence (like websites and e-commerce), the real challenge lies in how they manage their business. Digitalization only leads to environmental innovation when it is paired with professional strategic management—specifically, setting clear targets, providing performance bonuses, and monitoring results. Our findings reveal that the main "gap" for these companies is not a lack of technology, but a need for more professionalized management practices. Furthermore, the results show that the specific country where a firm operates is the single most important factor in determining its ability to innovate for the planet. For digitalization to truly help the environment, SMEs must focus on professionalizing their internal management, and governments must create better local conditions for green growth.

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Photo by Marvin Meyer on Unsplash

Photo by Marvin Meyer on Unsplash