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Empowering Manufacturing SMEs: Financial Accessibility and Sustainable Practices in the Age of Digitalization

Author

Listed:
  • Yimeng Zhou

    (Doctoral School in Economics, Faculty of Economics and Business Administration, University of Szeged, 6722 Szeged, Hungary)

  • Anca Pacala

    (Department of Automated Systems Engineering and Management, University of Oradea, 410087 Oradea, Romania)

Abstract

In today’s digital economy, long-term business success increasingly depends on both financial resources and digital capabilities. However, limited research explores how these two factors jointly drive sustainable performance in SMEs. This study investigates how access to finance influences sustainability outcomes among SMEs, with digital agility as a mediator and Industry 5.0 as a moderator. Based on cross-sectional data collected from 383 Hungarian manufacturing SMEs in late 2024, we apply PLS-SEM and Machine Learning (ML) techniques to validate our model. The results show that access to finance significantly influences digital agility and SMEs’ sustainability. Digital agility significantly mediates between access to finance and SMEs’ sustainability. Industry 5.0 further strengthens the relationships between access to finance and both SMEs’ sustainability and digital agility. ML identified digital agility as the key factor of SMEs’ sustainability. This study contributes to the Resource-Based View and Triple Bottom Line views by synergizing digital agility and human-centered Industry 5.0. Theoretically, it also supports methodological innovation in showing that the combined usage of PLS-SEM and ML can produce stronger and more fine-grained conclusions on complex sustainability dynamics. The findings are practically relevant guidance for SMEs, policymakers, and banks intending to enable digitally facilitated sustainable growth. To the scientific community, this study bridges a critical void by linking finance, technology, and sustainability within an innovative framework. Socially, it highlights how SMEs’ financial and digital capabilities can be strengthened not only to drive economic performance but also to support environmental sustainability and social well-being—resulting in inclusive and sustainable growth for emerging economies.

Suggested Citation

  • Yimeng Zhou & Anca Pacala, 2025. "Empowering Manufacturing SMEs: Financial Accessibility and Sustainable Practices in the Age of Digitalization," Sustainability, MDPI, vol. 17(8), pages 1-21, April.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3571-:d:1635535
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