Journal: IPSI Transactions on Internet Research

Analysis of the Impact of Digital Orientation
on the Profitability
of Small and Medium-Sized Enterprises

Authors: Lekić, Nemanja Mirjanić, Borjana Redžepagić, Srđan
Vapa Tankosić, Jelena Vapa, Bojan
Radulović, Dejan and Radulović, Sofija


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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.

Keywords

Digital Transformation, Digital Orientation, Strategic Planning, Technological Investments, Agility, Training, Profitability, Small and Medium-Sized Enterprises


Published in: IPSI Transaction on Internet Research (Volume: 22, Issue: 1)
Publisher: IPSI, Belgrade

Date of Publication: January 1, 2026

Open Access: CC-BY-NC-ND
DOI: 10.58245/ipsi.tir.2601.04

Pages: 26 - 33

ISSN: 1820 - 4503

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Lekić, Nemanja

Nemanja Lekić, PhD, is a senior lecturer at the Belgrade Business and Arts Academy of Applied Studies. His academic work focuses on applied management, with research interests in digital transformation, innovation, human resource management, and intellectual capital. He has published in peer-reviewed national and international journals of high academic standing and has presented at various academic conferences. He is the co-author of two textbooks: Management and Marketing Approach of Using Social Networks: Facebook and Instagram in Entrepreneurship.
e-mail: nemanja.lekic@bpa.edu.rs

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Mirjanić, Borjana

Borjana Mirjanić, PhD, professor of applied studies at the Belgrade Business and Arts Academy of Applied Studies, teaches Financial markets and Stock exchanges. She has a PhD in Finance, thesis: Performance Management of Equity Portfolio in Specific Conditions of Emerging Financial Markets - Case of Belgrade Stock Exchange. She is the author and co-author of a large number of papers published in many scientific and professional journals, as well as the author of the textbook Financial Markets and co-author of the textbook Stock Market Operations. The scientific fields of research are Financial Management, Financial Risk Management, Investments and Portfolio optimization.
e-mail: borjana.mirjanic@bpa.edu.rs

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Redžepagić, Srđan

Srdjan Redžepagić, PhD, Full Professor at the University of Nice Sophia Antipolis. HDR - Habilitation to direct research and PhD studies (Economics, Finance). From March 2019: Director of Balkan Institute of Science and Innovation (BISI) of the University Côte d’Azur: leading a team of more than 30 persons in the realization of activities: research, projects of university cooperation between France and other countries, managing workers and researchers through the BISI. Editor in chief of the International Scientific Review (France): Balkan Economic Review. EU projects coordinator. Member and General Secretary of the Research International Association of Professors in Economics "CEMAFI International", leader of the whole team of researchers with more than 100 full researchers’ members.
e-mail: Srdjan.Redzepagic@univ-cotedazur.fr

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Vapa Tankosić, Jelena

Jelena Vapa Tankosić, Phd, Full Professor at the Faculty of Economics and Engineering Management, University Business Academy in Novi Sad. Research field and area/areas: Economics of the European Union, Agricultural economics, Banking and finance, International Economics, International trade. Vice-Dean for Cooperation with Industry. Head of the Office for Cooperation with Industry, Education and Professional Development of Business Entities and Management of Student Internships. Deputy Head of the Project Office at the Faculty. Author and co-author of more than 150 papers published in international scientific journals, journals of national importance, proceedings of international conferences, author/co-author of monographs and chapters in monographs. Researcher in EU, IPA cross-border and national projects.
e-mail: jvapa@fimek.edu.rs

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Vapa, Bojan

Bojan Vapa, Phd, Assistant Professor, University „UnionNikola Tesla“, Research field and area/areas: Marketing, International economics. Working experience in "Vojvodinaput"-"Bačkaput" JSC in Novi Sad, engineer for bids and public procurement
e-mail: bojanvapa@gmail.com

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Radulović, Dejan

Prof. Dr. Dejan M. Radulović is a well-known lawyer, economist, historian, and notary public. In his work, he made a significant contribution in the areas of regional development and regional policy, development of small and medium-sized enterprises and entrepreneurship, craftsmanship, sustainable development, public notary and civil law. He is a member of several Academies, published more than 100 scientific papers and 17 books. He is a professor at Faculty of Law for Economics and Justice, University of Economics and Business Novi Sad.
e-mail: sode.radulovic@gmail.com

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Radulović, Sofija

Prof. Dr. Sofija Radulović is a well-known economist, who in her work made a significant contribution to the development of the tax system, public finances, development of small and medium-sized enterprises and entrepreneurship. She has published more than 50 papers and 6 books. She is a professor at Faculty of Law for Economy and Justice of the University of Economics Academy Novi Sad.
e-mail: sofija.radulovic@pravni-fakultet.info

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Cite this article

Lekić, Nemanja; Mirjanić, Borjana; Redžepagić, Srđan; Vapa Tankosić, Jelena; Vapa, Bojan; Radulović, Dejan; and Radulović, Sofija
"Analysis of the Impact of Digital Orientation on the Profitability of Small and Medium-Sized Enterprises",
IPSI Transactions on Internet Research, vol. 22(1), pp. 26-33, 2026. https://doi.org/10.58245/ipsi.tir.2601.04