Purpose We empirically analyze technology deployment and SME sustainability: the moderated mediation effect of innovation strategy and SME performance. Design/methodology/approach We analyze 303 SMEs using SEM. Findings Based on the dynamic capability theory, we revealed a positive link between innovation strategy and SME performance. SME performance mediates the nexus between technology deployment and SME sustainability and innovation strategy had a positive moderating effect on the relationship between technology deployment and SME performance. Research limitations/implications The study relied on self-reported data, which introduces the potential for common method bias. To enhance the robustness of the findings, future research should consider using multisource data or objective performance measures. The study did not examine industry-specific variations within the SME sector. Originality/value The study’s uniqueness lies in its ability to capture the relationship between technology deployment, SME sustainability, innovation strategy and the overall SME performance in one study. The study goes beyond the confirmation of positive linkages between technology adoption and SMEs’ long-term success. It also reveals the intricacies in which these relationships flourish. By providing partial support for a moderated mediation, the research gives a better perspective of the factors that influence the relationship between technology, performance and sustainability in SMEs.