Digitalisation and circular economy for sustainable management in Chilean small and medium-sized enterprises

Purpose – This study aims to examine how Chilean manufacturing small and medium-sized enterprises (SMEs) integrate sustainability and digitalisation into their performance management systems and how these practices influence organisational performance and competitiveness. Design/methodology/approach – A qualitative abductive approach was used, based on 15 case studies using semi-structured interviews with managers and sustainability professionals, complemented by document analysis and triangulation. Findings – The results show that practices such as renewable energy adoption, recycling programmes and community partnerships generate measurable economic, social and environmental outcomes, and digitalisation and circular economy (CE) principles act as key enablers of sustainable performance. Social implications – The study provides practical insights for SMEs to address sustainability challenges and contribute to the United Nations Sustainable Development Goals, particularly SDG 9 and SDG 12. Originality/value – This research proposes a novel sustainable performance management model tailored to SMEs in emerging economies, integrating digitalisation and CE principles into performance management systems.