The Impact of Digital Transformation on Organizational Performance: A Study of Small and Medium Enterprises

Abstract

The impact of digital transformation on Small and Medium Enterprises' (SMEs) organisational performance is examined in this study. SMEs confront particular opportunities and problems in embracing and integrating digital technologies as they have a greater and greater impact on business operations. The study looks at the relationship between key performance measures like productivity, efficiency, customer satisfaction, and market competitiveness and digital transformation activities like automation, data-driven decision-making, and the adoption of digital tools. Using empirical data gathered from SMEs in a variety of industries, the study highlights the key success drivers and obstacles to successful digital transformation. The results indicate that although digital adoption can greatly improve organisational performance, strategic alignment, leadership commitment, and resource availability are all necessary for such initiatives to be successful. This article offers helpful advice for SMEs looking to improve their competitiveness in the digital economy, along with insights into best practices for navigating the challenges of digital transformation.