INFORMATION DIGITALISATION AS A KEY DRIVER TO ACHIEVE IMPROVEMENT OF SME PERFORMANCE

INFORMATION DIGITALISATION AS A KEY DRIVER TO ACHIEVE IMPROVEMENT OF SME PERFORMANCE

Author
Emi HOXHOLLI, POLIS University (Tirana, Albania)
Godiva RËMBECI, POLIS University (Tirana, Albania)

Abstract
SMEs play a crucial role in the development of the national economy by contributing substantially to employment and GDP. According to the latest INSTAT data, enterprises with 1 to 250 employees represent about 98% of the total business stock and generate roughly 75% of GDP. Nearly 90% of total employment in the country depends on SMEs' economic performance. In the context of globalisation and EU integration, technology and innovation have become essential for SMEs to remain competitive in the global market. Digitalisation is emerging as a key driver of competitiveness and growth for SMEs worldwide. In Albania, the adoption of digital tools is transforming business operations, increasing efficiency, and supporting better decision-making; however, its specific impact in the Albanian setting remains insufficiently explored. By embracing digital tools and transformation strategies—including government-led digitalisation initiatives— Albanian SMEs can overcome existing barriers and accelerate their development. Despite this potential, research on IT implementation in SMEs remains limited and often treats the sector as homogeneous. This paper aims to assess the impact of digitalisation on Albanian SMEs, emphasising its role in improving productivity. Using secondary business statistics from INSTAT, the study evaluates SME productivity, economic performance, and the contribution of digitalisation to enhanced outcomes. The findings indicate that digitalisation is a key factor in ensuring the long- term sustainability and competitiveness of SMEs in Albania.