Main Article Content
Abstract
This study investigated the digital transformation strategies adopted by small and medium enterprises (SMEs) in Enugu State, Nigeria, the extent of their adoption, the challenges militating against adoption, and the relationship between these strategies and SME performance. Anchored on the Diffusion of Innovation theory, the Technology–Organisation–Environment framework, and the Technology Acceptance Model, the study adopted a descriptive survey research design. A sample of 240 SME owner-managers was drawn from a population of 600 registered enterprises across three commercial clusters in Enugu metropolis using the Taro Yamane formula and stratified random sampling; 228 questionnaires were validly returned and analysed. Data were analysed using frequencies, percentages, means, standard deviations, and simple linear regression with SPSS version 25.0. Findings revealed that mobile money/point-of-sale services, social media marketing, and digital customer engagement were adopted to a high extent, while enterprise resource planning systems, company websites, and artificial intelligence/data analytics tools remained underutilised. Epileptic power supply, the high cost of data and digital equipment, and inadequate digital skills were identified as the most pressing barriers. Regression analysis showed a statistically significant positive relationship between digital transformation strategies and SME performance (R² = .37, F(1, 226) = 133.41, p < .001). The study concludes that digital transformation, though unevenly adopted, meaningfully enhances the competitiveness of Enugu SMEs, and recommends targeted digital-skills training, affordable financing for technology acquisition, and improved power and broadband infrastructure.