The Impact of Digital Transformation and E-Government on the Performance of Small and Medium Enterprises in Saudi Arabia

Abstract

This literature review thus aims to provide theoretical and empirical synthesis on digital transformation (DT) and e-government (EG) adoption in only small and medium enterprises (SMEs) but most significantly in Saudi Arabia under the Vision 2030 of the country. Based on the core models – Innovation Diffusion Theory (IDT), Technology Acceptance Model (TAM), Resource-Based View (RBV) and Technology–Organization–Environment (TOE) framework – this literature review examines how DT and EG transform operational and financial performance based on vital mechanisms, particularly process efficiency, regulatory compliance, data interoperability, market access, decision agility, cost optimization and innovation capacity. An integrated critical analysis of empirical studies within OECD, Gulf Cooperation Council (GCC) and global contexts is made with an emphasis on divergent outcomes and contextual moderators. Closing this review are gaps identified in the areas of integrated research on DT-EG, heterogeneity in SMEs, qualitative insights, interoperability metrics and longitudinal studies on policy, motivating the present mixed-methods study of Saudi SMEs.