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The rapid evolution of digital technologies has dramatically reshaped business landscapes, offering unique opportunities for innovation and competitive advantage. However, small and medium-sized enterprises (SMEs) often approach digital transformation (DT) with caution, determined by factors such as limited resources, low digital literacy, and a focus on immediate operational challenges rather than long-term strategic shifts. This article conducts a comprehensive literature review to explore the main concepts of DT, innovation and within SMEs. Following this, the paper focuses on the role of digital transformation in enhancing both SMEs’ innovation and performance. The study show that digital transformation not only drives innovation and performance but also equips SMEs with the ability to unlock new business opportunities, optimize operations, and improve decision-making. Ultimately, the research highlights that embracing digital transformation is essential for enhancing SMEs’ innovation to remain competitive and resilient in the digital age and position themselves for long-term success. The findings suggest that policymakers could support digital transformation within SMEs’ by providing financial incentives, offering adequate training programs and fostering collaboration between SMEs and larger companies.

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Digital Transformation Driving SME Performance Through Innovation: A Literature Review of Key Influences and Interactions

  • 会议论文

  • 发表日期：

    2026年

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  • Imane Benzakour,
  • Miloud Daoud,
  • Nada Jabri,
  • Mehdi Bensouda

摘要

The rapid evolution of digital technologies has dramatically reshaped business landscapes, offering unique opportunities for innovation and competitive advantage. However, small and medium-sized enterprises (SMEs) often approach digital transformation (DT) with caution, determined by factors such as limited resources, low digital literacy, and a focus on immediate operational challenges rather than long-term strategic shifts. This article conducts a comprehensive literature review to explore the main concepts of DT, innovation and within SMEs. Following this, the paper focuses on the role of digital transformation in enhancing both SMEs’ innovation and performance. The study show that digital transformation not only drives innovation and performance but also equips SMEs with the ability to unlock new business opportunities, optimize operations, and improve decision-making. Ultimately, the research highlights that embracing digital transformation is essential for enhancing SMEs’ innovation to remain competitive and resilient in the digital age and position themselves for long-term success. The findings suggest that policymakers could support digital transformation within SMEs’ by providing financial incentives, offering adequate training programs and fostering collaboration between SMEs and larger companies.