Digital Capability, Digital Innovation and Enterprise Performance of Selected Small and Medium Enterprises (Smes) In Guangdong, China: Guidelines for Growth and Policy

This study investigates the impact of digital capability and digital innovation on enterprise performance, including customer satisfaction and objective evaluations, among Small and Medium Enterprises (SMEs) in Guangdong Province, China. Through an extensive literature review, quantitative research methods including mean analysis, correlation analysis, and regression analysis were employed to analyze survey data collected from SMEs. The results reveal a significant positive relationship between both digital capability and digital innovation, and enterprise performance. Specifically, SMEs with stronger digital capabilities and higher levels of digital innovation tend to demonstrate better enterprise performance in terms of customer satisfaction and objective evaluations such as sales growth rate and profit margin. Furthermore, based on the findings, the study proposes guidelines for growth and policy recommendations aimed at enhancing the digital capabilities and fostering digital innovation, ultimately contributing to their competitiveness and performance in the digital age.