The Impact of Digital Transformation on Improving the Efficiency of Operations Management in Small and Medium Enterprises: A field Study on the Services Sector in the Kingdom of Saudi Arabia

Abstract

Objectives: 
This study aimed to examine the role of digital transformation in its three dimensions—digital technologies, digital infrastructure, and employees’ digital skills—in enhancing operational management efficiency in small and medium-sized enterprises (SMEs) within the service sector in Saudi Arabia. The study also sought to assess the impact of these dimensions on improving operational performance and increasing the efficiency of business processes in these enterprises. 

Methodology: 
A descriptive-analytical approach was adopted, appropriate to the nature of the research. The study population comprised employees working in SMEs in the service sector across Saudi Arabia. A simple random sampling method was used, resulting in a sample of 165 participants. Data were collected through a structured questionnaire. 

Results: 
The findings revealed high levels of digital transformation and operational management efficiency from the participants’ perspective. Digital transformation had a statistically significant effect on enhancing operational efficiency. Among the three dimensions, digital skills and digital technologies had the greatest impact, followed by digital infrastructure, highlighting the importance of technically qualifying employees and promoting the use of modern technologies in operational processes. 

Conclusion: 
The study concluded that investing in digital infrastructure, enhancing employees’ technical competencies, and integrating digital systems with operational processes are essential for improving operational efficiency in SMEs. It also recommended expanding future studies to cover multiple sectors and incorporating mediating variables to examine the relationship between digital transformation and operational efficiency more comprehensively.