Building DPP Capabilities in SMEs: A TOE-based Empirical Investigation
- The implementation of the Digital Product Passport (DPP) under the EU’s Ecodesign for Sustainable Products Regulation (ESPR) aims to enhance transparency, traceability, and sustainability within the value chain. While the DPP promises substantial benefits, its adoption poses significant challenges – especially for small and medium-sized enterprises (SMEs). These firms, which make up 99% of non-financial enterprises in the EU, often face resource constraints that hinder technology implementation. Given the impending mandatory application of DPPs across almost all products groups, SMEs risk market exclusion unless they can successfully build the required capabilities.
This research identifies determinants influencing SMEs adoption of DPPs by leveraging the Technology-Organization-Environment (TOE) framework. Specifically, it assesses technological readiness, organizational factors, and external environmental conditions as primary drivers of capability development necessary for effectiveThe implementation of the Digital Product Passport (DPP) under the EU’s Ecodesign for Sustainable Products Regulation (ESPR) aims to enhance transparency, traceability, and sustainability within the value chain. While the DPP promises substantial benefits, its adoption poses significant challenges – especially for small and medium-sized enterprises (SMEs). These firms, which make up 99% of non-financial enterprises in the EU, often face resource constraints that hinder technology implementation. Given the impending mandatory application of DPPs across almost all products groups, SMEs risk market exclusion unless they can successfully build the required capabilities.
This research identifies determinants influencing SMEs adoption of DPPs by leveraging the Technology-Organization-Environment (TOE) framework. Specifically, it assesses technological readiness, organizational factors, and external environmental conditions as primary drivers of capability development necessary for effective DPP adoption. Employing a quantitative approach adapted from Mikalef et al. (2022), the study utilizes a survey and structural equation modeling to empirically evaluate how these determinants interact to shape SMEs’ DPP capabilities. This represents the first quantitative application of the TOE framework explicitly addressing capability formation in the context of DPP adoption.
Findings from this research will reveal specific technological, organizational, and environmental factors which are instrumental in enabling SMEs to comply with regulatory mandates and effectively manage product data in a DPP context. Practical implications include the identification of capability gaps and targeted policy recommendations to support SMEs. The study aims to foster digital transformation, enhance supply chain sustainability, and ensure broad compliance with emerging EU sustainability regulations.…

