Digital risk governance and sustainability in SMEs: evidence from North Macedonia

Small and medium-sized enterprises (SMEs) represent the backbone of the economy in North Macedonia, yet they increasingly operate in an environment characterized by rapid digitalization and increasing sustainability pressures. This study examines the relationship between digital risk governance maturity and sustainable performance among SMEs in North Macedonia. Specifically, the research investigates how organizational and institutional factors influence the development of digital risk governance and how this capability contributes to environmental, social, and governance (ESG) outcomes.
A quantitative research design was employed based on survey data collected from 150 SMEs in North Macedonia. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).
The results indicate that digital literacy, formalized digital policies, organizational capacity, export exposure, and institutional pressures significantly influence the maturity of digital risk governance. Furthermore, digital risk governance maturity has a strong positive effect on sustainable performance, confirming its role as a strategic organizational capability. Mediation analysis reveals that digital risk governance partially mediates the relationship between organizational and institutional factors and ESG outcomes.
The study contributes to the literature by integrating digital risk governance with sustainability research in the SME context of a transition economy. Practical implications highlight the importance of strengthening digital competencies, formal governance frameworks, and institutional support mechanisms in order to enhance both digital resilience and sustainable development among SMEs. Furthermore, the study confirms that digital risk governance serves as a critical mediator, effectively translating organizational resources into measurable ESG performance.