Balancing global standards and local needs: Digital technologies, social sustainability, and MSMEs

Area of Science:

• Business and Management
• Sustainability Studies
• Information Systems

Background:

• Digital technologies offer value but can lead to unintended negative outcomes in social sustainability practices.
• The impact of digital technology adoption on standardized versus localized social sustainability in MSMEs is under-researched.
• Existing literature often overlooks the nuanced relationship between digital solutions and social sustainability outcomes.

Purpose of the Study:

• To investigate how globalized digital technology adoption influences standardized social sustainability practices in MSMEs, moderated by institutional pressures.
• To examine the effect of standardized social sustainability practices on localized initiatives within MSMEs.
• To explore the role of sustainability innovation in mediating the relationship between standardization and localized social sustainability.

Main Methods:

• Development of a theoretical model integrating Institutional Theory, Resource-based View, and Contingency Theory.
• Empirical testing of the model using survey data from 500 micro, small, and medium enterprises (MSMEs).
• Statistical analysis to assess direct, moderating, and mediating effects.

Main Results:

• Globalized digital technology solutions positively and significantly impact the standardization of social sustainability practices in MSMEs.
• Institutional pressures act as a positive moderator, strengthening the influence of digital technologies on standardization.
• Standardization of social sustainability practices negatively affects localized, community-specific initiatives, but sustainability innovation softens this impact.

Conclusions:

• Adopting globalized digital solutions aids MSMEs in enhancing standardized social sustainability, particularly under institutional pressures.
• Over-standardization driven by digital tools can diminish focus on local, community-based sustainability efforts.
• Prioritizing sustainability innovation is crucial for MSMEs to balance standardized and localized social sustainability, mitigating negative effects and fostering holistic sustainability.