The Impact of Digital and Organizational Innovation on the Performance of Local SMEs

Abstract

The purpose of this study is to examine the relationship between digital and organizational innovation and business performance. It highlights the impact of adopting new technologies and enhancing internal practices on the efficiency, performance, and adaptability of organizations. Qualitative data for this study were collected through a questionnaire distributed to 120 leaders of industrial local SMEs. The research employed stratified random sampling and utilized a hypothetico-deductive approach for the analysis and interpretation of the data. The empirical results, obtained using SMART PLS and SPSS software, confirm that the combination of digital and organizational innovations positively impacts performance, as measured by indicators such as profitability and customer satisfaction. Additionally, the study identified a set of constraints that hinder entrepreneurial innovation, which in turn affects the performance of local SMEs.