SYSTEMIC ENHANCEMENT OF SMES' PERFORMANCE THROUGH DIGITAL TRANSFORMATION

The digital transformation of Romanian small and medium-sized enterprises (SMEs) has become a key driver of competitiveness, innovation, and long-term sustainability. This research explores the impact of digitalization on small and medium-sized enterprises management, with a particular focus on the perceptions of managers regarding digital tools, communication processes, and customer relationship management (CRM), highlights both the opportunities and challenges brought by digital adoption. The importance of this applied research stems from the increasing need to understand how digitalization influences management processes within small and medium-sized enterprises (SMEs), a vital sector for Romania's economy. In a context where digital transformation is no longer an option but a strategic necessity, analyzing the impact of these changes from a managerial perspective provides relevant insights for adapting organizational strategies and strengthening the competitiveness of these entities. The results indicate that while digital technologies enhance internal and external communication and increase operational efficiency, barriers such as limited financial resources, lack of digital skills, and resistance to change still persist. The study offers valuable insights into how digitalization influences strategic decisions in Romanian small and medium-sized enterprises and provides recommendations for facilitating the digital transition in this sector.