o:10314 Analysis of the impact of digital orientation on the profitability of small and medium-sized enterprises en Abstract: Digital transformation has become an essential factor shaping contemporary business processes, particularly within the small and medium-sized enterprises (SMEs) sector, which often faces resource constraints and rapid market fluctuations. The purpose of this study is to explore the impact of digital orientation on SME profitability, considering digital orientation through five critical dimensions: strategic planning, technological investment, budget allocation, organisational agility, and employee training. Although existing frameworks acknowledge the relevance of digital transformation, they frequently lack a comprehensive approach to integrating these dimensions in the context of business performance. The research adopted a quantitative approach, employing a five-point Likert scale based on responses from 740 SME participants. Findings indicate a statistically significant positive correlation between digital orientation and perceived profitability, confirming that a strategic focus on digital resources and employee competency development significantly contributes to sustainable growth within the SME sector. Future research should prioritise support for struggling SMEs through government aid, tailored training, and stronger public-private partnerships. Overcoming these barriers will enable full use of digital technologies and enhance long-term competitiveness. In addition, focusing solely on profitability overlooks other vital indicators such as growth, profit, and market share. Further efforts should aim to bridge the digital divide and promote broader digital transformation across SMEs. Index terms: digital transformation, digital orientation, strategic planning, technological investments, agility, training, profitability, small and medium-sized enterprises 1552101 1820-4503 1552099 10.58245/ipsi.tir.2601.04 2026-09-17T09:26:42.457Z 44 yes 46 Nemanja Lekić Belgrade Business and Arts Academy of Applied Studies Belgrade, Serbia Borjana Mirjanić Belgrade Business and Arts Academy of Applied Studies Belgrade, Serbia person Srđan Redzepagic University Côte d’Azur, Balkan Institute of Science and Innovation (BISI), Nice, France person Jelena Vapa-Tankosic University of Business Academy in Novi Sad person 0000-0001-8062-1154 Bojan Vapa University “Union – Nikola Tesla”, Belgrade, Serbia person Dejan Radulović Faculty of Law for Economics and Justice, University of Economics and Business, Novi Sad, Serbia person 0000-0003-0578-2331 Sofija Radulović University Business Academy Novi Sad, The faculty of Economics and Engineering Management in Novi Sad, Novi Sad person 0000-0001-5956-1505 application/pdf 3197607 https://unilib.phaidrabg.rs/o:10314 no yes 18 70 1552253 211A01 IPSI Transactions on Internet Research 22 1 26 33 2026