This study offers a comprehensive review of how Green Innovation (GI) impacts the sustainability performance of Small and Medium-Sized Enterprises (SMEs). Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, 28 empirical studies published in 2024 were systematically selected from Scopus and Web of Science (WoS) databases. The review identifies three central themes: (1) GI and sustainable performance, (2) leadership, strategy, and organizational readiness, and (3) technological innovation and digital transformation. Beyond theoretical insights, this paper provides actionable strategies for SMEs. Specifically, it highlights how SMEs can enhance sustainability by adopting green leadership practices, integrating low-cost digital tools (e.g., energy management systems and Artificial Intelligence (AI)-supported planning), building organizational readiness through employee training, and aligning internal strategies with environmental goals. Practical recommendations are also made for leveraging government incentives and forming innovation partnerships to overcome resource limitations. These findings position the study as an academic contribution and as a practical guide for SMEs striving for long-term sustainability and competitiveness in evolving green economies.
Saman et al. (Thu,) studied this question.
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