Digitalization, Organizational Learning, and Knowledge Capabilities: A Triadic Framework for Advancing CSR and Environmental Management Within Institutionally Thin Contexts

ABSTRACT

As environmental pressures intensify and regulatory expectations rise, many SMEs continue to operate without the managerial knowledge, learning infrastructures, or digital capabilities required to translate sustainability intentions into action. This disconnect poses a serious risk, not only to firm survival, but to national and global sustainability agendas. Addressing this gap, the study examines how managerial knowledge of Sustainability Management Tools (SMTs) influences sustainability practices, whether organizational learning capability serves as the mechanism through which knowledge becomes action, and how digitalization enhances this process. Drawing on survey data from 564 Ghanaian SMEs and employing Co‐variance Based Structural Equation Modeling, the findings reveal that SMT knowledge significantly and positively influences sustainability practices, with organizational learning capability partially mediating this relationship. Moreover, digitalization strengthens the effect of learning on sustainability outcomes, underscoring its role as a critical enabler. The study offers a compelling capability‐based framework for advancing SME sustainability in resource‐constrained environments.