Purpose In an era marked by ecological pressures and digital disruption, small and medium-sized enterprises (SMEs) are increasingly challenged to align innovation with sustainability. Building on dynamic capabilities theory, this study aims to investigate how responsible digital transformation (RDT) contributes to sustainable performance and how organisational ambidexterity (OA) reinforces this relationship. Design/methodology/approach Using a qualitative multiple-case study method, this study analyses two SMEs from Morocco and Canada operating in the textile and artificial intelligence (AI) sectors. Data were collected through semi-structured interviews and analysed using thematic analysis and VOSviewer software to identify the relational patterns among RDT, OA and sustainability outcomes. Findings The results revealed that RDT, when integrated with ethical, environmental and social considerations, enhances sustainable performance beyond operational efficiency. OA acts as a key enabler, allowing SMEs to balance digital exploration (e.g. innovation and market adaptation) and exploitation (e.g. efficiency and cost control). Both firms demonstrate a dynamic and contextual form of ambidexterity embedded in their daily practices. Moreover, this study reveals that external pressures from customers, investors and regulators drive SMEs to pursue responsible innovation. Originality/value To the best of the authors’ knowledge, this study is among the first to explore the interplay among RDT, OA and sustainable performance in SMEs from a dynamic capability perspective. It provides a nuanced understanding of how SMEs can overcome the “digitalisation paradox” and strategically align digital innovation with sustainability goals, offering actionable insights for managers and policymakers.
Hassani et al. (Tue,) studied this question.