This study investigates the interplay between digital transformation (DT) and sustainability in small and medium-sized enterprises (SMEs) in the European food sector. While DT and sustainability are often perceived as distinct goals, this research explores the complementarities and potential conflicts. Drawing on qualitative data from 15 SMEs across the European food sector, the study explores the interplay between digital tool adoption and sustainability. Findings reveal that DT facilitates efficient resource management, supply chain transparency, and regulatory compliance, while sustainability initiatives drive DT adoption. However, resource constraints, digital skill shortages, and stakeholder resistance present barriers for effective integration. The research contributes to understanding the strategic alignment of DT and sustainability goals providing managerial recommendations for balancing resource allocation, fostering collaboration, and addressing skill gaps.
