The Impact of Digital Transformation on Organizational Performance in Small and Medium Enterprises

Abstract

This study examines the relationship between digital transformation initiatives and organizational performance in small and medium enterprises (SMEs). Through a quantitative analysis of 250 SMEs across various industries, this research identifies key digital transformation factors that significantly impact business performance metrics. The findings reveal a strong positive relationship (r = .69, p < .001) between digital transformation and organizational performance, with high-maturity digital organizations demonstrating 26.8% better overall performance compared to their less digitally advanced counterparts. The results suggest that strategic implementation of digital technologies, coupled with organizational readiness, leads to improved operational efficiency, customer satisfaction, and financial performance.