The digital transformation of SMEs: opportunities and challenges for sustainability reporting in Romania

Purpose This study aims to examine the impact of digital transformation on the sustainability reporting of Romanian small- and medium-sized enterprises (SMEs), focusing on environmental sustainability objectives. Design/methodology/approach The hypotheses were validated using a quantitative survey of SMEs and structural equation modeling. Findings Digital technologies create opportunities for collecting and analyzing sustainability data; however, SMEs face challenges such as limited resources, insufficient technological expertise and regulatory uncertainty. Practical implications The findings offer decision-makers and SME managers valuable insights into integrating digital technologies to enhance sustainability reporting and emphasize the need for financial and technical support. Originality/value This study contributes to digital transformation and sustainability reporting research in SMEs, focusing on the underexplored Romanian context.