The Impact of Digital Transformations on the Financial Marketing Performance of SMEs Using Multiple Regression

Abstract

Digital transformation has become a key driver of competitive advantage and sustainable growth of small and medium-sized enterprises (SMEs) globally. In addition to technological innovations, it also involves strategic organizational changes, the development of digital capabilities and the improvement of organizational culture. Although the global phenomenon of digital transformation has not yet achieved its full potential in SMEs, mostly due to initial financial investments. Yet many studies show that it is precisely the avoidance of transitioning to digital business that leads to stagnation in the business of these companies. This paper focuses on establishing a link between digital transformation and the financial marketing performance of SMEs in Bosnia and Herzegovina. Hypothesis testing was performed on a sample of 61 SME managers from various industries. Through multiple regression analysis, it was confirmed that digital transformations significantly affect the financial performance of SMEs. In addition to theoretical and empirical conclusions, the paper provides specific instructions for marketing managers to improve financial performance.