Digitalisation and Firm Performance: Evidence from Tunisian SMEs

Existing studies suggest that the level of digitalisation amongst Tunisian Small and Medium-sized Enterprises (SMEs) is low. Tunisian SMEs lack the resources and capabilities needed to implement digital technologies. Furthermore, the literature argues that digitalisation offers unprecedented opportunities for SMEs, making digitalisation more than fundamental for their survival and growth. The purpose of this paper is to shed light on the relationship between digitalisation and performance, in the context of Tunisian SMEs. Based on a firm-level dataset of 466 SMEs in Tunisia, the results indicate that digitalisation is positively related to firms’ performance, allowing them to develop their activities, boost their sales, and to have a greater presence within foreign markets.  This positive relationship is linked with the firm’s engagement within a global digitalisation strategy, where it considers digitalisation as being an integral part of its business and activities. Thus, the paper gives several policy recommendations to support the digital transformation of SMEs in Tunisia.