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Purpose

Despite the growing challenges related to digital transformation and sustainability, literature offers limited solutions to small and medium-sized enterprises (SMEs) for managing these issues concurrently. To bridge this gap, this paper draws on the dynamic capabilities view to explore how a person-centric view contributes to addressing digital transformation and sustainability in SMEs.

Design/methodology/approach

Case studies were conducted on three SMEs in the Basque manufacturing industry. Data were collected through semi-structured interviews, followed by a thematic analysis.

Findings

Findings indicate that SMEs effectively adopting a person-centric view on their digital transformation are more successful in achieving sustainability.

Originality/value

This study offers a novel contribution to the literature on the person-centric view on digital transformation for sustainability. It provides empirical evidence for proposing a conceptual framework that identifies and concedes different prominence to the critical dynamic capabilities driving digital transformation, considers the three dimensions of sustainability and recognises a cyclical feedback loop between social sustainability and dynamic capabilities.

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