Technology for Sustainability: The Role of Digitalization in Supporting Businesses during the Green Transition

Nowadays, climate change represents one of the most critical global challenges, with profound economic, social, and environmental implications. In this context, firms play a key role, as their strategic and operational choices can make a significant difference in advancing the green transition. SMEs are of central importance to Italy, as small and medium-sized enterprises constitute the backbone of the Italian economy and therefore play a fundamental role in the country’s sustainable transformation. The aim of this research is to answer the question: “How can the implementation of Industry 4.0 support SMEs in the green transition?” The methodology is based on the analysis of a large dataset collected through a survey administered to 1,500 Italian SMEs. The variables were organized into four fundamental dimensions (Financial, Sustainability, Orientation, and Innovation) and examined using a rigorous analytical framework that combines Descriptive Analysis, Bivariate Analysis (correlations), Multivariate Analysis (OLS regressions), and Configurational Analysis (fsQCA). The main theoretical and practical findings are summarized in four propositions: (1) Industry 4.0 technologies have a direct relationship with sustainability; greater technological implementation with enabling capabilities leads to operational improvements that enhance sustainability performance (TechAdoption). (2) The positive influence of technological implementation on sustainability levels is stronger when firms also regard technologies as instruments for achieving sustainability objectives, producing concrete and measurable effects (TechImpact). (3) Superior sustainability outcomes can be achieved by embedding sustainability objectives into firms’ strategies, treating them as central elements of decision-making and operational processes (Orientation). (4) Financial resources are critical to support investments; however, on their own they are not sufficient to guarantee high levels of sustainability — they must be organized within a clearly defined strategic plan (Financial). Finally, the study presents promising avenues for future research and offers practical implications for managers — such as the need for targeted strategies and investment in skilled human capital — and for policymakers, emphasizing the importance of dedicated funding and performance-linked incentives.