EXPLORNG THE STRATEGIC ROLE OF DIGITALIZATION IN SME PERFORMANCE (CASE OF GEORGIA)

Abstract

Modern technology has become a key driver of business growth across sectors such as media, finance, medicine, and education. As digital tools and automation increasingly shape operations, enterprises are compelled to integrate digital capabilities to enhance sustainability and competitiveness. This study examines the role of digitalization in strengthening the sustainability and competitive advantage of Georgian SMEs, drawing on the Resource-Based View (RBV) and Dynamic Capabilities (DC) frameworks. Over one hundred participants contributed to this quantitative research, with data collected via surveys and analyzed using correlation and regression methods. Results indicate that while 68% of respondents view digitalization as important for sustainability, no direct relationship was found between perceived importance and actual digital adoption or performance. The findings underscore that technology alone does not ensure advantage; rather, strategic integration and adaptive utilization of digital tools determine SMEs’ sustainable competitiveness.