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Balancing act or two roads to travel: Evaluating the trade-offs between digitalization and net zero innovation in SMEs.

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Authors: Kesidou, Effie1 (AUTHOR) E.Kesidou@leeds.ac.uk, Ri, Anastasia2 (AUTHOR) a.ri@aston.ac.uk, Roper, Stephen3 (AUTHOR) Stephen.roper@wbs.ac.uk
Source: Small Business Economics. Feb2026, Vol. 66 Issue 2, p797-826. 30p.
Subject Terms: *Small business, *Organizational sociology, *Resource-based theory of the firm, Digital technology, Carbon emissions, Green behavior, Climate change
Geographic Terms: United Kingdom
Abstract: As firms face the dual challenges of digitalization and net zero innovation to combat climate change, understanding how these twin transitions relate is crucial. This study examines potential synergies or trade-offs between digital technologies and net zero innovations in UK SMEs. By integrating the Resource-Based View (RBV) and the Attention-Based View (ABV), we explore how categories of digital adopters relate to categories of net zero innovation adopters. Utilizing novel survey data for 964 UK SMEs, we employ ordered Probit estimation to examine the relationship between digital and net zero adoption. Our results reveal that digitally advanced SMEs are more likely to be advanced adopters of net zero innovations, suggesting that digital complementarities and enhanced capabilities can reinforce environmental innovations that reduce carbon emissions. We offer valuable contributions for both theory and practice, highlighting the importance of supporting SMEs in their twin transitions. Plain English Summary: Based on a survey of 964 UK SMEs, we show that digitally advanced firms are more likely to adopt net zero innovations. Understanding the link between digital technologies and net zero innovations is crucial for combating climate change. Our study integrates the Resource-Based View and the Attention-Based View, demonstrating that digitally advanced SMEs are more likely to be advanced adopters of net zero innovations. Our results offer crucial implications to SMEs, indicating that despite SMEs' constraints, digitalization allows them to introduce innovations that reduce carbon emissions. Thus, supporting SMEs in their twin transition is vital. [ABSTRACT FROM AUTHOR]
Database: Entrepreneurial Studies Source
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  Data: <searchLink fieldCode="JN" term="%22Small+Business+Economics%22">Small Business Economics</searchLink>. Feb2026, Vol. 66 Issue 2, p797-826. 30p.
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  Data: *<searchLink fieldCode="DE" term="%22Small+business%22">Small business</searchLink><br />*<searchLink fieldCode="DE" term="%22Organizational+sociology%22">Organizational sociology</searchLink><br />*<searchLink fieldCode="DE" term="%22Resource-based+theory+of+the+firm%22">Resource-based theory of the firm</searchLink><br /><searchLink fieldCode="DE" term="%22Digital+technology%22">Digital technology</searchLink><br /><searchLink fieldCode="DE" term="%22Carbon+emissions%22">Carbon emissions</searchLink><br /><searchLink fieldCode="DE" term="%22Green+behavior%22">Green behavior</searchLink><br /><searchLink fieldCode="DE" term="%22Climate+change%22">Climate change</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22United+Kingdom%22">United Kingdom</searchLink>
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  Data: As firms face the dual challenges of digitalization and net zero innovation to combat climate change, understanding how these twin transitions relate is crucial. This study examines potential synergies or trade-offs between digital technologies and net zero innovations in UK SMEs. By integrating the Resource-Based View (RBV) and the Attention-Based View (ABV), we explore how categories of digital adopters relate to categories of net zero innovation adopters. Utilizing novel survey data for 964 UK SMEs, we employ ordered Probit estimation to examine the relationship between digital and net zero adoption. Our results reveal that digitally advanced SMEs are more likely to be advanced adopters of net zero innovations, suggesting that digital complementarities and enhanced capabilities can reinforce environmental innovations that reduce carbon emissions. We offer valuable contributions for both theory and practice, highlighting the importance of supporting SMEs in their twin transitions. Plain English Summary: Based on a survey of 964 UK SMEs, we show that digitally advanced firms are more likely to adopt net zero innovations. Understanding the link between digital technologies and net zero innovations is crucial for combating climate change. Our study integrates the Resource-Based View and the Attention-Based View, demonstrating that digitally advanced SMEs are more likely to be advanced adopters of net zero innovations. Our results offer crucial implications to SMEs, indicating that despite SMEs' constraints, digitalization allows them to introduce innovations that reduce carbon emissions. Thus, supporting SMEs in their twin transition is vital. [ABSTRACT FROM AUTHOR]
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=ent&AN=191886125
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        Value: 10.1007/s11187-025-00998-4
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      – Code: eng
        Text: English
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        Type: general
      – SubjectFull: Organizational sociology
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      – SubjectFull: Resource-based theory of the firm
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      – SubjectFull: Carbon emissions
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      – SubjectFull: Green behavior
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      – SubjectFull: Climate change
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      – SubjectFull: United Kingdom
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      – TitleFull: Balancing act or two roads to travel: Evaluating the trade-offs between digitalization and net zero innovation in SMEs.
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            NameFull: Ri, Anastasia
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            – D: 01
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              Text: Feb2026
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