The Impact of Digital Transformation on Small and Medium Enterprises Performance in Sri Lankan Hotel Industry

The aim of this research is to study how digital transformation effects the performance of small and medium enterprises in the hotel industry in Sri Lanka. This research makes an in-depth evaluation of the business performance effect taken about by digital tools and methods regarding compatibility, cost-effectiveness, trust, and interactivity The approach applied in this study is quantitative, wherein the survey methodology is applied to gather data from 100 SMEs located within the Colombo district. The findings show that compatibility and cost-effectiveness have a high positive influence on SME performance, while trust and interactivity are of lower importance. This paper identifies that integration of digital technologies is therefore beneficial to the performance of SMEs in the hotel sector but with some costs and adaptation challenges. Hence, the findings bring into focus that there exists a need for digital upgradation of infrastructure in SMEs and engaging with customers effectively by using digital tools in a more enhancing manner. The study develops existing literature by providing an investigation of how digital transformation affects business performance in the hospitality industry. It is also of great use to policymakers and industry practitioners who strive for additional means to help improve competitiveness and operational efficiency.