Digital Infrastructure and Digital Innovation Capabilities as Drivers of SME Performance

Abstract

The rapid acceleration of digitalization has heightened the strategic value of digital infrastructure as a key lever for enhancing competitiveness and organizational performance in increasingly uncertain environments. This study examines the role of digital infrastructure and innovation capabilities as critical drivers of SME performance. A quantitative survey was conducted with 150 Tunisian SMEs using a convenience sampling approach, and the data were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that a well-developed digital infrastructure significantly improves organizational performance (OP). In addition, digital infrastructure was found to enhance managers’ ability to reconfigure and innovate their business models, thereby strengthening their ventures’ adaptability. This research enriches the growing body of literature on digital transformation in emerging economies by providing empirical evidence from the North African context. It also offers practical insights for entrepreneurs and SME managers on how to leverage digital technologies to stimulate innovation, support sustainable growth, boost competitiveness, and better navigate rapidly evolving market conditions.