System Engineering and Productivity

System Engineering and Productivity

Development of an Integrated Sustainability and Resilience Model for Appropriate Smart Technology Implementation in Small and Medium Enterprises Under Crisis Conditions

Document Type : Research Paper

Authors
Mehdi Namdarzadegan 1
َAli Bozorgi-Amiri 2
1 Ph.D. Student, Faculty of Industrial Engineering, Alborz Campus, University of Tehran, Tehran, Iran
2 Corresponding author: Associate Professor, School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran
10.22034/sep.2025.2064025.1337
Abstract
Small and medium enterprises (SMEs) encounter significant challenges in digital transformation during various crises, including economic shocks and supply chain disruptions. This research develops an integrated sustainability and resilience model for smart technology implementation in SMEs under crisis conditions. The methodology employs an innovative combination of Real Options Theory (ROT) with Deep Reinforcement Learning (DRL) algorithms. Through an exploratory-analytical study, data from 85 small enterprises were collected and analyzed. Fifteen key criteria affecting the sustainability and resilience of smart technology implementation were identified and categorized into organizational factors, technological characteristics, and environmental factors. Structural equation modeling was utilized to analyze relationships between these criteria and mediating variables of technology absorption capacity and change management capability. Real options modeling was conducted using the binomial tree method, followed by the development of a reinforcement learning model to optimize smart technology implementation strategies. Results demonstrate that smart technologies with high scalability, adaptability, and operational efficiency exhibit greater implementation success during crisis conditions, with Internet of Things achieving the highest adoption rate among examined technologies. The proposed model predicts smart technology implementation success under crisis conditions with 89.2% accuracy. This research provides a decision support system enabling enterprise managers to formulate sustainable and resilient strategies for smart technology implementation under severe uncertainty conditions.

Highlights

  • Technologies with higher scalability demonstrate greater implementation success under crisis conditions.
  • Internet of Things (IoT) demonstrated the highest adoption rate.
  • The proposed model predicts smart technology implementation success under crisis conditions with 89.2% accuracy.

Keywords
Smart technologies
Small and medium-sized enterprises
Sustainability
Flexibility
Deep reinforcement learning
Subjects

Copyright © Mehdi Namdarzadegan, Ali Bozorgi-Amiri

 

License

This article is released under the Creative Commons Attribution (CC BY 4.0) license. Anyone is free to copy, share, translate, and adapt this article for any purpose, whether commercial or non-commercial, as long as proper citation is given to the authors and original publication.

Alkhodair, M., & Alkhudhayr, H. (2025). Harnessing Industry 4.0 for SMEs: Advancing smart manufacturing and logistics for sustainable supply chains. Sustainability, 17(3), Article 813. https://doi.org/10.3390/su17030813
Awad, J. A., & Martín-Rojas, R. (2024). Digital transformation influence on organisational resilience through organisational learning and innovation. Journal of Innovation and Entrepreneurship, 13(1), Article 69. https://doi.org/10.1186/s13731-024-00405-4
Durst, S., & Henschel, T. (2021). COVID-19 as an accelerator for developing stronger businesses? Insights from Estonian small firms. Journal of the International Council for Small Business, 2(1), 1–29. https://doi.org/10.1080/26437015.2020.1859935
Dwivedi, Y. K., Hughes, L., Cheung, C. M. K., Conboy, K., Duan, Y., Dubey, R., ... & Viglia, G. (2022). How to develop a quality research article and avoid a journal desk rejection. International Journal of Information Management, 62, Article 102426. https://doi.org/10.1016/j.ijinfomgt.2021.102426
Gregurec, I., Tomičić Furjan, M., & Tomičić-Pupek, K. (2021). The impact of COVID-19 on sustainable business models in SMEs. Sustainability, 13(3), Article 1098. https://doi.org/10.3390/su13031098
Guo, H., Yang, Z., Huang, R., & Guo, A. (2020). The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey. Frontiers of Business Research in China, 14, Article 19. https://doi.org/10.1186/s11782-020-00087-1
Kannan, S., & Gambetta, N. (2025). Technology-driven sustainability in small and medium-sized enterprises: A systematic literature review. Journal of Small Business Strategy, 35(1), 129-157. https://doi.org/10.53703/001c.126636
Kaňovská, L., & Bumberová, V. (2021). The differences in the propensity of providing smart services by SMEs from the electrical engineering industry with regard to their cooperation and innovation flexibility. Sustainability, 13(9), Article 5008. https://doi.org/10.3390/su13095008
Khurana, I., Dutta, D. K., & Ghura, A. S. (2022). SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem. Journal of Business Research, 150, 623–641. https://doi.org/10.1016/j.jbusres.2022.06.048
Klein, V. B., & Todesco, J. L. (2021). COVID-19 crisis and SMEs responses: The role of digital transformation. Knowledge and Process Management, 28(2), 117–133. https://doi.org/10.1002/kpm.1660
Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033
Melo, I. C., Queiroz, G. A., Junior, P. N. A., de Sousa, T. B., Yushimito, W. F., & Pereira, J. (2023). Sustainable digital transformation in small and medium enterprises (SMEs): A review on performance. Heliyon, 9(3), Article e13908. https://doi.org/10.1016/j.heliyon.2023.e13908
Mick, M. M. A. P., Kovaleski, J. L., & Chiroli, D. M. D. G. (2024). Sustainable digital transformation roadmaps for SMEs: A systematic literature review. Sustainability, 16(19), Article 8551. https://doi.org/10.3390/su16198551
Őri, D., Szabó, I., Kő, A., & Kovács, T. (2024). Digitalizing in crisis: The role of organizational resilience in SMEs’ digitalization. Journal of Enterprise Information Management, 37(4), 1185–1205. https://doi.org/10.1108/JEIM-03-2023-0141
Petropoulou, A., Angelaki, E., Rompogiannakis, I., Passas, I., & Garefalakis, A. (2024). Digital transformation in SMEs: Pre- and post-COVID-19 era—A comparative bibliometric analysis. Sustainability, 16(23), Article 10536. https://doi.org/10.3390/su162310536
Sagala, G. H., & Őri, D. (2025). Exploring digital transformation strategy to achieve SMEs resilience and antifragility: A systematic literature review. Journal of Small Business & Entrepreneurship, 37(3), 495–524. https://doi.org/10.1080/08276331.2024.2392080
Valenza, G., & Damiano, R. (2025). Enacting resilience in small and medium enterprises following the sustainability path: A systematic literature review. Strategic Change, 34(2), 237–252. https://doi.org/10.1002/jsc.2608
Zamani, S. Z. (2022). Small and medium enterprises (SMEs) facing an evolving technological era: A systematic literature review on the adoption of technologies in SMEs. European Journal of Innovation Management, 25(6), 735–757. https://doi.org/10.1108/EJIM-07-2021-0360
System Engineering and Productivity
Volume 5, Issue 4 - Serial Number 17
Serial No. 17, Winter Quarterly
Winter 2026
Pages 45-69

  • Receive Date 24 June 2025
  • Revise Date 22 July 2025
  • Accept Date 04 August 2025
  • First Publish Date 04 August 2025
  • Publish Date 22 December 2025