This study examines the digital maturity of small- and medium-sized enterprises (SMEs) in the context of Industry 4.0. Despite growing awareness of the importance of digital transformation, many SMEs encounter structural and strategic challenges that impede their progress. Among their obstacles is the inadequacy of digital maturity models used to diagnose digital maturity levels in SMEs due to their typological, sectoral, geographical, and other specific characteristics. Using a constructivist and qualitative approach, we have developed a simplified, inclusive, and holistic assessment framework comprising six key dimensions (technology, culture, organization, people and human resources, strategic planning), associated with six progressive maturity levels. Our findings reveal that most SMEs studied in 2023 exhibit a beginner level of digital maturity. These enterprises are characterized by small-scale digital initiatives, often lacking a clear strategy, with limited or partial digitization of processes and heterogeneous technology adoption. The resulting self-assessment tool provides SMEs with practical guidance to launch, evaluate, and accelerate their digital transformation. This study contributes theoretically by proposing a practical digital maturity model and offering a tool to support SMEs and public policy. It highlights the need for tailored support, strategic alignment, and continuous training to unlock the full potential of Industry 4.0 in less urbanized and resource-constrained areas.

Small and medium-sized enterprises (SMEs) face mounting pressure to advance their digital transformation while integrating sustainability practices. However, the relationship between digital maturity and ESG (Environmental, Social, and Governance) integration in SMEs remains insufficiently comprehended, especially in regional contexts. This study examines how digital maturity shapes the scope and development of ESG practices in six Quebec SMEs using a qualitative multiple-case study design guided by Yin’s framework. Data were collected through a structured 54-item diagnostic protocol generating Digital Maturity Scores (DMSs), Sustainability Management Indices (SMIs), and Digital Literacy Indices (DLIs), complemented by thematic coding in NVivo. Cross-case analysis reveals that higher digital maturity is broadly associated with more diversified ESG practices, though this alignment is uneven and conditioned by governance mechanisms, firm size, and sectoral dynamics. An inductive typology distinguishes three profiles: compliance-oriented firms, ESG diversifiers, and strategic integrators. Findings further indicate that governance structures are necessary but not sufficient conditions for sustainability outcomes, as their effectiveness depends on alignment with operational routines and data practices. This study contributes to the literature by providing a combined digital maturity–ESG diagnostic framework adapted to the realities of SMEs. It also advances three theoretical propositions suitable for testing in larger and more diverse samples.

The transformative journey toward Industry 4.0 (I4.0) has revolutionized business operations, requiring firms to adapt to digitalization and environmentally-conscious practices (often termed “green digital,” “sustainable digital,” “smart green,” or “responsible digital”). This adaptation may be challenging, especially for small and medium-sized enterprises (SMEs) that typically lack larger firms’ adaptive resources and capacities. This chapter delves into the dynamic intersection of sustainability and digital transformation by focusing on the specific case of SMEs to propose a preliminary framework for evaluating SMEs’ Industry 5.0 (I5.0) maturity levels (digital), which has a broader scope by including green and social practices (sustainable) with digitalization. The chapter first provides some background by highlighting the push for organizations to integrate sustainable practices into their digital transformation endeavors seamlessly. In a world grappling with environmental and social challenges, aligning technological advancements with responsibility is increasingly relevant for SMEs. The schwerpunkt of the chapter is an extensive (but non-systematic) literature review of the digital maturity level assessment domain, coupled with insights from extant research in the sustainable digital (5.0) assessment area. The objective of the review is to construct a preliminary framework for evaluating SMEs’ digital preparedness while concurrently measuring their commitment to sustainable practices. This framework incorporates critical parameters such as resource efficiency, circular economy principles, and the incorporation of renewable energy sources in digital control operations. The chapter further sheds light on SMEs’ challenges in achieving a coherent balance between digitalization and sustainability. These challenges span technological, organizational, and regulatory dimensions, emphasizing the multifaceted nature of the transition. Notably, the chapter identifies these challenges and proposes practical strategies and best practices to overcome them.