The Impact of Sustainable Digital Transformation on Green Organizational Agility in Post-Pandemic SMEs

• Abey Litty

  Texas University

  Author

The post-pandemic recovery period has intensified pressure on small and medium-sized enterprises (SMEs) to simultaneously digitize operations and respond to sustainability imperatives, yet the intersection of these two transformation streams—sustainable digital transformation (SDT) and green organizational agility (GOA)—remains poorly theorized and scarcely measured. Existing studies examine digital transformation and organizational agility in isolation or treat sustainability as a peripheral outcome rather than an integrated capability. This study addresses that gap by developing and empirically testing a predictive framework that models SDT as a multidimensional driver of GOA in post-pandemic SMEs. Using a quantitative, cross-sectional design with survey data from 312 SMEs across manufacturing and service sectors, and employing partial least squares structural equation modeling (PLS-SEM) supplemented by machine learning feature importance analysis, the study finds that SDT explains 89.4% of the variance in GOA (R² = 0.894, p < 0.001), with sustainable production technologies and green digital infrastructure emerging as the strongest predictors—outperforming customer-facing digital tools. The findings advance dynamic capabilities theory by positioning GOA as a higher-order capability co-created through sustainability-infused digitalization, and offer SME managers a validated diagnostic framework for prioritizing investments that yield both environmental legitimacy and operational responsiveness.

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Copyright (c) 2026 Abey Litty (Author)

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