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Keywords = supply chain enterprise

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25 pages, 1851 KiB  
Article
Evaluating Supply Chain Finance Instruments for SMEs: A Stackelberg Approach to Sustainable Supply Chains Under Government Support
by Shilpy and Avadhesh Kumar
Sustainability 2025, 17(15), 7124; https://doi.org/10.3390/su17157124 - 6 Aug 2025
Abstract
This research aims to investigate financing decisions of capital-constrained small and medium-sized enterprise (SME) manufacturers and distributors under a Green Supply Chain (GSC) framework. By evaluating the impact of Supply Chain Finance (SCF) instruments, this study utilizes Stackelberg game model to explore a [...] Read more.
This research aims to investigate financing decisions of capital-constrained small and medium-sized enterprise (SME) manufacturers and distributors under a Green Supply Chain (GSC) framework. By evaluating the impact of Supply Chain Finance (SCF) instruments, this study utilizes Stackelberg game model to explore a decentralized decision-making system. To our knowledge, this investigation represents the first exploration of game models that uniquely compares financing through trade credit, where the manufacturer offers zero-interest credit without discounts with reverse factoring, while also considering distributor’s efforts on sustainable marketing under the impact of supportive government policies. Our study suggests that manufacturers should adopt reverse factoring for optimal profits and actively participate in distributors’ financing decisions to address inefficiencies in decentralized systems. Furthermore, the distributor’s demand quantity, profits and sustainable marketing efforts show significant increase under reverse factoring, aided by favorable policies. Finally, the results are validated through Python 3.8.8 simulations in the Anaconda distribution, offering meaningful insights for policymakers and supply chain managers. Full article
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29 pages, 540 KiB  
Systematic Review
Digital Transformation in International Trade: Opportunities, Challenges, and Policy Implications
by Sina Mirzaye and Muhammad Mohiuddin
J. Risk Financial Manag. 2025, 18(8), 421; https://doi.org/10.3390/jrfm18080421 - 1 Aug 2025
Viewed by 470
Abstract
This study synthesizes the rapidly expanding evidence on how digital technologies reshape international trade, with a particular focus on small and medium-sized enterprises (SMEs). Guided by two research questions—(RQ1) How do digital tools influence the volume and composition of cross-border trade? and (RQ2) [...] Read more.
This study synthesizes the rapidly expanding evidence on how digital technologies reshape international trade, with a particular focus on small and medium-sized enterprises (SMEs). Guided by two research questions—(RQ1) How do digital tools influence the volume and composition of cross-border trade? and (RQ2) How do these effects vary by countries’ development level and firm size?—we conducted a PRISMA-compliant systematic literature review covering 2010–2024. Searches across eight major databases yielded 1857 records; after duplicate removal, title/abstract screening, full-text assessment, and Mixed Methods Appraisal Tool (MMAT 2018) quality checks, 86 peer-reviewed English-language studies were retained. Findings reveal three dominant technology clusters: (1) e-commerce platforms and cloud services, (2) IoT-enabled supply chain solutions, and (3) emerging AI analytics. E-commerce and cloud adoption consistently raise export intensity—doubling it for digitally mature SMEs—while AI applications are the fastest-growing research strand, particularly in East Asia and Northern Europe. However, benefits are uneven: firms in low-infrastructure settings face higher fixed digital costs, and cybersecurity and regulatory fragmentation remain pervasive obstacles. By integrating trade economics with development and SME internationalization studies, this review offers the first holistic framework that links national digital infrastructure and policy support to firm-level export performance. It shows that the trade-enhancing effects of digitalization are contingent on robust broadband penetration, affordable cloud access, and harmonized data-governance regimes. Policymakers should, therefore, prioritize inclusive digital-readiness programs, while business leaders should invest in complementary capabilities—data analytics, cyber-risk management, and cross-border e-logistics—to fully capture digital trade gains. This balanced perspective advances theory and practice on building resilient, equitable digital trade ecosystems. Full article
(This article belongs to the Special Issue Modern Enterprises/E-Commerce Logistics and Supply Chain Management)
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31 pages, 4963 KiB  
Article
Individual Action or Collaborative Scientific Research Institutions? Agricultural Support from Enterprises from the Perspective of Subsidies
by Ziyi Zhang, Yantong Zhong, Guitao Zhang, Tianyu Zhai, Zongru Li and Shuaicheng Lin
Sustainability 2025, 17(15), 6873; https://doi.org/10.3390/su17156873 - 29 Jul 2025
Viewed by 206
Abstract
Under China’s “Rural Revitalisation” strategy, contract farming faces challenges including farmers’ limited access to advanced technologies and high operational risks for agricultural support enterprises. The collaborative involvement of scientific research institutions offers potential solutions but remains underexplored. This study employs Stackelberg game theory [...] Read more.
Under China’s “Rural Revitalisation” strategy, contract farming faces challenges including farmers’ limited access to advanced technologies and high operational risks for agricultural support enterprises. The collaborative involvement of scientific research institutions offers potential solutions but remains underexplored. This study employs Stackelberg game theory to model a contract farming supply chain under two agricultural assistance modes: enterprise-led (EL) and collaborative assistance with scientific research institutions (CI). We further propose two government subsidy mechanisms: subsidies to enterprises and subsidies to scientific research institutions. The models analyze optimal decisions, supply chain performance, and subsidy efficiency, validated through numerical experiments. Key findings reveal the following: (1) The CI mode enhances agricultural output and farmer revenue but may reduce enterprise profits, deterring collaboration. (2) Government subsidies incentivize enterprise–institution collaboration. Subsidizing scientific research institutions typically improves agricultural productivity and economic benefits more effectively than subsidizing enterprises. (3) Synergistic effects exist among the government subsidy coefficient, cost coefficient of technical assistance, consumer preferences for agricultural quality, and profit-sharing ratio. The latter three parameters significantly influence subsidy model selection. This research provides policy insights for enhancing agricultural assistance efficiency and sustainable contract farming development. Full article
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32 pages, 2875 KiB  
Article
Achieving Sustainable Supply Chains: Applying Group Concept Mapping to Prioritize and Implement Sustainable Management Practices
by Thompson McDaniel, Edit Süle and Gyula Vastag
Logistics 2025, 9(3), 99; https://doi.org/10.3390/logistics9030099 - 28 Jul 2025
Viewed by 459
Abstract
Background: Sustainability in supply chain management (SCM) practices is becoming increasingly important as environmental responsibility and social concerns, as well as enterprises’ competitiveness in terms of innovation, risk, and economic performance, become increasingly urgent. This paper aims to identify and prioritize concepts [...] Read more.
Background: Sustainability in supply chain management (SCM) practices is becoming increasingly important as environmental responsibility and social concerns, as well as enterprises’ competitiveness in terms of innovation, risk, and economic performance, become increasingly urgent. This paper aims to identify and prioritize concepts for implementing sustainable supply chains, drawing on sustainable supply chain management (SSCM) and green supply chain management (GSCM) techniques. Corporate supply chain managers across various industries, markets, and supply chain segments brainstormed management practices to enhance the sustainability of their supply chains. Four industry sectors were surveyed across five different value chain segments. Methods: A group concept mapping (GCM) approach incorporating multi-dimensional scaling (MDS) and hierarchical cluster analysis (HCA) was used. A hierarchy of practices is proposed, and hypotheses are developed about achievability and impact. Results: A decision-making matrix prioritizes eight solution concepts based on two axes: impact (I) and ease of implementation (EoI). Conclusions: Eight concepts are prioritized based on the optimal effectiveness of implementing the solutions. Pattern matching reveals differences between emerging and developed markets, as well as supply chain segments, that decision-makers should be aware of. By analyzing supply chains from a multi-part perspective, this research goes beyond empirical studies based on a single industry, geographic region, or example case. Full article
(This article belongs to the Section Sustainable Supply Chains and Logistics)
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23 pages, 614 KiB  
Article
Air Pollution, Credit Ratings, and Corporate Credit Costs: Evidence from China
by Haoran Wang and Jincheng Wang
Sustainability 2025, 17(15), 6829; https://doi.org/10.3390/su17156829 - 27 Jul 2025
Viewed by 341
Abstract
From the perspective of credit ratings, this paper studies the impact of air pollution on corporate credit costs and the impact mechanism. Based on 2007–2022 data on A-share listed companies in the Chinese capital market, this paper uses a two-way fixed effects model [...] Read more.
From the perspective of credit ratings, this paper studies the impact of air pollution on corporate credit costs and the impact mechanism. Based on 2007–2022 data on A-share listed companies in the Chinese capital market, this paper uses a two-way fixed effects model to examine the impact of air pollution on corporate credit costs and the impact mechanism. The results show that air pollution increases the credit costs for enterprises because air pollution affects the sentiment of rating analysts, leading them to give more pessimistic credit ratings to enterprises located in areas with severe air pollution. The moderating effect analysis reveals that the effect of air pollution on the increase in corporate credit costs is more pronounced for high-polluting industries, manufacturing industries, and regions with weaker bank competition. Further analysis reveals that in the face of rising credit costs caused by air pollution, enterprises tend to adopt a combination strategy of increasing commercial credit financing and reducing the commercial credit supply to cope. Although this response behavior alleviates corporations’ own financial pressure, it may have a negative effect on supply chain stability. This paper provides new evidence that reveals that air pollution is an implicit cost in the capital market, enriching research in the fields of environmental governance and capital markets. Full article
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21 pages, 487 KiB  
Article
A Set of Sustainability Indicators for Brazilian Small and Medium-Sized Non-Alcoholic Beverage Industries
by Alexandre André Feil, Angie Lorena Garcia Zapata, Mayra Alejandra Parada Lazo, Maria Clair da Rosa, Jordana de Oliveira and Dusan Schreiber
Sustainability 2025, 17(15), 6794; https://doi.org/10.3390/su17156794 - 25 Jul 2025
Viewed by 354
Abstract
Sustainability in the non-alcoholic beverage industry requires effective metrics to assess environmental, social, and economic performance. However, the lack of standardised indicators for small and medium-sized enterprises (SMEs) hinders the implementation of sustainable strategies. This study aims to select a set of sustainability [...] Read more.
Sustainability in the non-alcoholic beverage industry requires effective metrics to assess environmental, social, and economic performance. However, the lack of standardised indicators for small and medium-sized enterprises (SMEs) hinders the implementation of sustainable strategies. This study aims to select a set of sustainability indicators for small and medium-sized non-alcoholic beverage industries in Brazil. Seventy-four indicators were identified based on the Global Reporting Initiative (GRI) guidelines, which were subsequently evaluated and refined by industry experts for prioritisation. Statistical analysis led to the selection of 31 final indicators, distributed across environmental (10), social (12), and economic (9) dimensions. In the environmental dimension, priority indicators include water management, energy efficiency, carbon emissions, and waste recycling. The social dimension highlights working conditions, occupational safety, gender equity, and impacts on local communities. In the economic dimension, key indicators relate to supply chain efficiency, technological innovation, financial transparency, and anti-corruption practices. The results provide a robust framework to guide managers in adopting sustainable practices and support policymakers in improving the environmental, social, and economic performance of small and medium-sized non-alcoholic beverage industries. Full article
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28 pages, 2422 KiB  
Article
Reverse Logistics Network Optimization for Retired BIPV Panels in Smart City Energy Systems
by Cimeng Zhou and Shilong Li
Buildings 2025, 15(14), 2549; https://doi.org/10.3390/buildings15142549 - 19 Jul 2025
Viewed by 314
Abstract
Through the energy conversion of building skins, building-integrated photovoltaic (BIPV) technology, the core carrier of the smart city energy system, encourages the conversion of buildings into energy-generating units. However, the decommissioning of the module faces the challenge of physical dismantling and financial environmental [...] Read more.
Through the energy conversion of building skins, building-integrated photovoltaic (BIPV) technology, the core carrier of the smart city energy system, encourages the conversion of buildings into energy-generating units. However, the decommissioning of the module faces the challenge of physical dismantling and financial environmental damage because of the close coupling with the building itself. As the first tranche of BIPV projects will enter the end of their life cycle, it is urgent to establish a multi-dimensional collaborative recycling mechanism that meets the characteristics of building pv systems. Based on the theory of reverse logistics network, the research focuses on optimizing the reverse logistics network during the decommissioning stage of BIPV modules, and proposes a dual-objective optimization model that considers both cost and carbon emissions for BIPV. Meanwhile, the multi-level recycling network which covers “building points-regional transfer stations-specialized distribution centers” is designed in the research, the Pareto solution set is solved by the improved NSGA-II algorithm, a “1 + 1” du-al-core construction model of distribution center and transfer station is developed, so as to minimize the total cost and life cycle carbon footprint of the logistics network. At the same time, the research also reveals the driving effect of government reward and punishment policies on the collaborative behavior of enterprise recycling, and provides methodological support for the construction of a closed-loop supply chain of “PV-building-environment” symbiosis. The study concludes that in the process of constructing smart city energy system, the systematic control of resource circulation and environmental risks through the optimization of reverse logistics network can provide technical support for the sustainable development of smart city. Full article
(This article belongs to the Special Issue Research on Smart Healthy Cities and Real Estate)
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29 pages, 584 KiB  
Article
How Green Data Center Establishment Drives Carbon Emission Reduction: Double-Edged Sword or Equilibrium Effect?
by Jing Luo, Hengyuan Li and Jian Liu
Sustainability 2025, 17(14), 6598; https://doi.org/10.3390/su17146598 - 19 Jul 2025
Viewed by 428
Abstract
As inevitable outcomes of the digital economy’s low-carbon development, green data centers play a crucial role in environmental impact and underlying mechanisms. This study focuses on green data center establishment as a representative practice, utilizing Chinese A-share listed companies and urban data from [...] Read more.
As inevitable outcomes of the digital economy’s low-carbon development, green data centers play a crucial role in environmental impact and underlying mechanisms. This study focuses on green data center establishment as a representative practice, utilizing Chinese A-share listed companies and urban data from 2009 to 2023 to construct a multi-period difference-in-differences model. From a supply chain perspective, we investigate the impact of green data centers on corporate carbon emissions and their mechanisms. The results demonstrate that regional establishment of green data centers significantly promotes corporate carbon emission reduction, with conclusions remaining robust after a series of comprehensive robustness and endogeneity tests. This process primarily operates through two channels: green total factor energy efficiency and green attention. Green data center establishment significantly enhances green total factor energy efficiency and corporate green attention. The more developed the regional digital infrastructure and the higher the computing power development levels, the stronger the incentive effect on corporate carbon reduction. Heterogeneity analysis reveals that green data centers have more significant promoting effects on carbon emission reduction in state-owned enterprises and high-tech enterprises. This research contributes to a deeper understanding of the effects, mechanisms, and regional variations related to green data centers in facilitating corporate carbon emission reduction. Full article
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26 pages, 2215 KiB  
Article
Smart Routing for Sustainable Supply Chain Networks: An AI and Knowledge Graph Driven Approach
by Manuel Felder, Matteo De Marchi, Patrick Dallasega and Erwin Rauch
Appl. Sci. 2025, 15(14), 8001; https://doi.org/10.3390/app15148001 - 18 Jul 2025
Viewed by 465
Abstract
Small and medium-sized enterprises (SMEs) face growing challenges in optimizing their sustainable supply chains because of fragmented logistics data and changing regulatory requirements. In particular, globally operating manufacturing SMEs often lack suitable tools, resulting in manual data collection and making reliable accounting and [...] Read more.
Small and medium-sized enterprises (SMEs) face growing challenges in optimizing their sustainable supply chains because of fragmented logistics data and changing regulatory requirements. In particular, globally operating manufacturing SMEs often lack suitable tools, resulting in manual data collection and making reliable accounting and benchmarking of transport emissions in lifecycle assessments (LCAs) time-consuming and difficult to scale. This paper introduces a novel hybrid AI-supported knowledge graph (KG) which combines large language models (LLMs) with graph-based optimization to automate industrial supply chain route enrichment, completion, and emissions analysis. The proposed solution automatically resolves transportation gaps through generative AI and programming interfaces to create optimal routes for cost, time, and emission determination. The application merges separate routes into a single multi-modal network which allows users to evaluate sustainability against operational performance. A case study shows the capabilities in simplifying data collection for emissions reporting, therefore reducing manual effort and empowering SMEs to align logistics decisions with Industry 5.0 sustainability goals. Full article
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27 pages, 851 KiB  
Article
How Does Digital Trade Affect a Firm’s Green Total Factor Productivity? A Life Cycle Perspective
by Jianbo Hu, Wenxin Cai, Yu Shen and Faustino Dinis
Sustainability 2025, 17(14), 6435; https://doi.org/10.3390/su17146435 - 14 Jul 2025
Viewed by 519
Abstract
It is increasingly recognized that the twin transitions of digitalization and green transformation are pivotal to achieving sustainable development. This study examines how digital trade affects corporate green total factor productivity (GTFP), using panel data from Chinese A-share listed firms and 287 prefecture-level [...] Read more.
It is increasingly recognized that the twin transitions of digitalization and green transformation are pivotal to achieving sustainable development. This study examines how digital trade affects corporate green total factor productivity (GTFP), using panel data from Chinese A-share listed firms and 287 prefecture-level cities in Mainland China from 2012 to 2022. The results demonstrate that digital trade exerts a significant positive impact on GTFP, primarily through improvements in technical efficiency, with heterogeneous effects across different stages of the corporate life cycle. Endogeneity concerns are carefully addressed through instrumental variable estimation and quasi-experimental designs, and robustness checks confirm the reliability of the findings. Mechanism analyses further reveal that digital trade enhances GTFP by stimulating green technological innovation and optimizing supply chain management. Importantly, threshold regression reveals non-linear effects. Both the level of digital trade and institutional factors, such as environmental regulation, intellectual property protection, and market integration, moderate the relationship between digital trade and GTFP in U-shaped, N-shaped, and other positive non-linear patterns. These insights enhance the understanding of how digitalization interacts with institutional contexts to drive sustainable productivity growth, providing practical implications for policymakers seeking to optimize digital trade strategies and complementary regulatory frameworks. Full article
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27 pages, 1017 KiB  
Article
Agency or Reselling? Multi-Product Sales Mode Selection on E-Commerce Platform
by Pengju Huo, Yujie Wang and Qihuan Chu
J. Theor. Appl. Electron. Commer. Res. 2025, 20(3), 178; https://doi.org/10.3390/jtaer20030178 - 14 Jul 2025
Viewed by 299
Abstract
As environmental issues become increasingly prominent, the sustainable practices of enterprises, especially measures at the product level, have garnered widespread attention from scholars. Although numerous studies have explored suppliers’ sales strategies for green products, they often overlook the scenario where suppliers simultaneously sell [...] Read more.
As environmental issues become increasingly prominent, the sustainable practices of enterprises, especially measures at the product level, have garnered widespread attention from scholars. Although numerous studies have explored suppliers’ sales strategies for green products, they often overlook the scenario where suppliers simultaneously sell both green and non-green products.This study focuses on the sales mode selection strategies of suppliers when providing green and non-green products through e-commerce platforms. Utilizing a game model, we analyze the equilibrium strategies between suppliers and e-commerce platforms, and conduct sensitivity analyses to evaluate the impact of key parameters on decision-making. The results reveal that there are significant differences in the strategic preferences of suppliers and e-commerce platforms. However, when commission rates are moderate and green products incur high production costs, these preferences tend to align, leading to Pareto optimal outcomes. Additionally, our findings demonstrate that adopting differentiated sales modes for the two product types can effectively mitigate the problem of double marginalization, thereby enhancing the efficiencyof supply chains. These insights provide valuable guidance for e-commerce platform managers and suppliers in making decisions on sales models for managing multiple types of products. Full article
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16 pages, 470 KiB  
Article
Digital Planning Tools in Intermodal Transport: Evidence from Poland
by Mateusz Zajac, Tomislav Rožić, Justyna Swieboda-Kutera and Martin Starčević
Logistics 2025, 9(3), 94; https://doi.org/10.3390/logistics9030094 - 11 Jul 2025
Viewed by 420
Abstract
Background: The increasing complexity of global supply chains and environmental expectations has highlighted the strategic importance of digital transformation in the transport, forwarding, and logistics (TFL) sector. Despite a growing portfolio of available tools, adoption rates—particularly among small and medium-sized enterprises (SMEs) [...] Read more.
Background: The increasing complexity of global supply chains and environmental expectations has highlighted the strategic importance of digital transformation in the transport, forwarding, and logistics (TFL) sector. Despite a growing portfolio of available tools, adoption rates—particularly among small and medium-sized enterprises (SMEs) in Central and Eastern Europe—remain low. This study investigates the barriers and motivations related to the implementation of digital planning tools supporting intermodal transport planning. Methods: A structured online survey was conducted among 80 Polish TFL enterprises, targeting decision-makers responsible for operational and digital strategies. The questionnaire included 17 closed and semi-open questions grouped into three thematic sections: tool usage, implementation barriers, and digital readiness. Results: The findings indicate that only 20% of respondents use dedicated route planning tools, and merely 10% report satisfaction with their performance. Key barriers include lack of awareness, organizational inertia, and the prioritization of other initiatives, with financial cost cited less frequently. While environmental sustainability is declared as a priority by most enterprises, digital support for emission tracking is limited. The results highlight the need for targeted education, integration support, and differentiated platform functionalities for SMEs and larger firms. Conclusions: This study offers evidence-based recommendations for developers, policymakers, and logistics managers aiming to accelerate digital adoption in the intermodal logistics landscape. Full article
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29 pages, 672 KiB  
Article
Configuring Supply Chain Resilience Under Natural Disaster Risk
by Jiaqi Cheng and Peng Shan
Sustainability 2025, 17(14), 6346; https://doi.org/10.3390/su17146346 - 10 Jul 2025
Viewed by 380
Abstract
In recent years, the intensifying frequency of natural disasters such as floods and typhoons has brought severe disruptions to the global supply chain system, making supply chain resilience an important academic research and practical application topic. This study explores the influencing factors and [...] Read more.
In recent years, the intensifying frequency of natural disasters such as floods and typhoons has brought severe disruptions to the global supply chain system, making supply chain resilience an important academic research and practical application topic. This study explores the influencing factors and allocation effects of supply chain resilience under the risk of natural disasters, with a particular focus on its impact on sustainability. This paper conducts an empirical study on supply chain resilience in the context of natural disasters by using the Structural Equation Model (SEM) and Fuzzy Set Qualitative Comparative Analysis (fsQCA). Based on 407 valid questionnaires, the study found that supply chain flexibility, foresight, visibility, cooperation, and support significantly positively affected the enhancement of supply chain resilience. Furthermore, through the fsQCA method, this study identified a single configuration approach that leads to high supply chain resilience and clarified the complexity of resilience formation under different conditions. This research not only enriches the theoretical framework of supply chain resilience but also provides targeted strategies for enterprises and governments to enhance their resilience to natural disasters, thereby suggesting potential pathways to support economic stability, social well-being, and environmental protection, though further empirical validation is needed. Full article
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34 pages, 338 KiB  
Article
Systemic Gaps in Circular Plastics: A Role-Specific Assessment of Quality and Traceability Barriers in Australia
by Benjamin Gazeau, Atiq Zaman, Roberto Minunno and Faiz Shaikh
Sustainability 2025, 17(14), 6323; https://doi.org/10.3390/su17146323 - 10 Jul 2025
Viewed by 326
Abstract
The effective adoption of quality assurance and traceability systems is increasingly recognised as a critical enabler of circular economy (CE) outcomes in the plastics sector. This study examines the factors that influence the implementation of such systems within Australia’s recycled plastics industry, with [...] Read more.
The effective adoption of quality assurance and traceability systems is increasingly recognised as a critical enabler of circular economy (CE) outcomes in the plastics sector. This study examines the factors that influence the implementation of such systems within Australia’s recycled plastics industry, with a focus on how these factors vary by company size, supply chain role, and adoption of CE strategy. Recycled plastics are defined here as post-consumer or post-industrial polymers that have been reprocessed for reintegration into manufacturing applications. A mixed-methods survey was conducted with 65 stakeholders across the Australian plastics value chain, comprising recyclers, compounders, converters, and end-users. Respondents assessed a structured set of regulatory, technical, economic, and systemic factors, identifying whether each currently operates as an enabler or barrier in their organisational context. The analysis employed a comparative framework adapted from a 2022 European study, enabling a cross-regional interpretation of patterns and a comparison between CE-aligned and non-CE firms. The results show that firms with CE strategies report greater alignment with innovation-oriented enablers such as digital traceability, standardisation, and closed-loop models. However, these firms also express heightened sensitivity to systemic weaknesses, particularly in areas such as infrastructure limitations, inconsistent material quality, and data fragmentation. Small- and medium-sized enterprises (SMEs) highlighted compliance costs and operational uncertainty as primary barriers, while larger firms frequently cited frustration with regulatory inconsistency and infrastructure underperformance. These findings underscore the need for differentiated policy mechanisms that account for sectoral and organisational disparities in capacity, scale, and readiness for traceability. The study also cautions against the direct transfer of European circular economy models into the Australian context without consideration of local structural, regulatory, and geographic complexities. Full article
18 pages, 315 KiB  
Article
Digital Transformation and Corporate Innovation in SMEs
by Tao Cen and Shuping Lin
Systems 2025, 13(7), 551; https://doi.org/10.3390/systems13070551 - 7 Jul 2025
Viewed by 737
Abstract
Whether and how digital transformation affects innovation in small and medium-sized enterprises (SMEs) remains to be examined. This study aims to answer this question using a sample of SMEs listed on the Chinese National Equities Exchange and Quotations (NEEQ) market from 2012 to [...] Read more.
Whether and how digital transformation affects innovation in small and medium-sized enterprises (SMEs) remains to be examined. This study aims to answer this question using a sample of SMEs listed on the Chinese National Equities Exchange and Quotations (NEEQ) market from 2012 to 2023. Employing textual mining techniques, this paper measures the degree of digital transformation through keyword frequency analysis of annual reports, while innovation is measured by the number of patent grants. Panel fixed effects models show that digital transformation significantly enhances corporate innovation in SMEs. This relationship remains robust after comprehensive endogeneity and additional robustness tests. Mechanisms analysis reveals that digital transformation alleviates financial constraints and enhances supply chain diversity, enabling SMEs to allocate more resources toward innovation activities. Heterogeneity analysis reveals that the positive effect of digital transformation on innovation is more pronounced for firms located in cities with higher digital finance coverage, in midwestern regions, and in industries with lower digitalization levels. These findings shed light on the power of digital technology, highlighting how its adoption can significantly bolster the innovation capacity of SMEs and drive their growth in a rapidly evolving digital economy. Full article
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