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Digital transformation and competitiveness in Small and Medium-Sized Enterprises

Aug 2026 · Sophia Research Review · Vol 3, pp. 38-50 · 0 citations

TL;DR

Overall, digital transformation was identified as a structural and irreversible process capable of redefining the future of small and medium-sized enterprises, organizational competitiveness, and sustainable economic development in the digital era.

Abstract

The objective of this study was to analyze the role of digital transformation as a determinant of competitiveness in small and medium-sized enterprises and evaluate its impact on organizational efficiency, innovation capacity, sustainability, and strategic development. The study was developed using a qualitative analytical methodology supported by a comprehensive narrative literature review. Scientific articles, institutional reports, systematic reviews, and academic investigations published between 2021 and 2026 were analyzed through recognized scientific databases and academic repositories. The findings demonstrated that digital transformation significantly strengthens organizational competitiveness by improving operational efficiency, strategic decision-making, innovation processes, customer engagement, and market expansion. Technologies such as artificial intelligence, electronic commerce, automation systems, cloud computing, and digital payment platforms were identified as essential tools for enhancing organizational adaptability and business sustainability. However, the study also revealed important challenges related to financial limitations, cybersecurity risks, digital inequality, insufficient technological infrastructure, and lack of digital competencies. Overall, digital transformation was identified as a structural and irreversible process capable of redefining the future of small and medium-sized enterprises, organizational competitiveness, and sustainable economic development in the digital era.

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