Digital Transformation and Performance in Publishing SMEs: The Influence of Online Purchasing Behaviour and CRM

Abstract : The rapid growth of digital consumption has transformed how readers purchase and engage with publishing content in China. Traditional publishing small and medium enterprises in Shanghai face increasing pressure to digitalise their business models while maintaining competitiveness in the evolving digital economy. This study investigates how online purchasing behaviour and Customer Relationship Management influence firm performance through digital transformation. A quantitative research design was adopted, and data were collected from 113 managers working in private publishing small and medium enterprises in Shanghai. Partial Least Squares Structural Equation Modelling was used to examine both the direct and mediating relationships among the studied variables. The results show that online purchasing behaviour is the most influential driver of firm performance, followed by Customer Relationship Management. Digital transformation significantly enhances firm performance and partially mediates the effects of both online purchasing behaviour and Customer Relationship Management. These findings highlight the interconnected roles of market driven consumer behaviour and internal relational capabilities in shaping digital development and performance outcomes. The study contributes to theoretical understanding of digital transformation in legacy cultural industries and offers practical insights for publishing managers to strengthen customer centric strategies and implement systematic digitalisation initiatives. Overall, success in the digital publishing environment requires a combined effort to respond to online demand patterns, enhance customer relationship capability, and build digital operational readiness.