Impact of Digital Transformation on Small and Medium Enterprises Performance in The Sri Lankan Apparel Sector

The present study aims to determine the impact of digital transformation on the organizational performance of Sri Lankan SMEs in the apparel sector. Digital transformation plays a significant role in many businesses and helps to value the firm's propositions and manage business operations well. Implementing digital platforms is not easier for companies. Small and medium-scale enterprises need to invest more in digital transformations. Digital transformation is more important to apparel sector businesses. Firms must logically acquire new digital technology to become profitable organization, survive, and enhance continuous growth. According to that, the main objective of the study is to determine the impact of digital transformation on organization performance this study adopted the positivist research philosophy, deductive approach and quantitative survey method. The sample of the study consists of 365 Small and Medium Enterprises in the apparel sector located in Western Province, Sri Lanka. Comparability, cost-effectiveness, trust and interactivity are the independent variables and business performance is the dependent variable of the study. The study found that Comparability, cost-effectiveness, trust, and interactivity positively impact business performance. The findings of the study recommend that there should be proper planning and training to make the digital transformation. To address the limitations of the present study, it suggested for future researchers to conduct the research with more variables and conduct as longitudinal study.