Impact of Digital Integration on the Small and Medium-Sized Enterprises in Arab Countries

الملخص

This study conducts a comprehensive investigation to explore the strategic role of adoption Small and Medium-sized Enterprises (SMEs) in Arab countries (ARCs) on Digital Integration (DI), emphasizing its influence on streamlining operational processes and enhancing competitiveness. Accomplished through a systematic literature review combined with applying a SWOT model to identify the strengths, weaknesses, opportunities, and threats associated with DI adoption in this region context. The findings highlight that DI significantly boosts operational efficiency by automating processes, optimizing resource management, and reducing costs. Notably, DI facilitates SMEs to access global markets through Digital Technologies (DTs) such as Customer Relationship Management (CRM) systems, Digital Platforms (DPs), and automation operations. The study underscores persistent barriers, including high implementation costs, limited digital skills, and organizational resistance to change, which impede the full realization of DI benefits. Conversely, opportunities such as access to innovative financing, enhanced marketing capabilities, and sustainable practices position DI as a key enabler of growth. The research also identifies threats such as cybersecurity vulnerabilities, a widening technological gap, and compliance challenges, emphasizing the need for proactive measures to address these issues. This study contributes practical insights for policymakers and SME leaders, advocating for targeted investments in infrastructure, comprehensive training programs, and supportive regulatory frameworks to accelerate DI implementation in SMEs in ARCs. Ultimately, the research concluded that DI is not merely a tool for efficiency but a strategic imperative for SMEs to achieve sustainability, innovation, and resilience in an evolving Arabic economy.