This paper investigates the effects of different dimensions of innovation on the competitive advantage of small and medium-sized enterprises (SMEs). The main dimensions of the innovation retained in this study are related to different types of innovation, innovation activities, sources of internal and external information, and public support for innovation. In this study, we rely on the principal component analysis of innovation applied to a sample of 231 Tunisian SMEs. The results show that product innovation, organizational innovation and innovation activities were the key variables for enhancing the competitive advantage of SMEs. In contrast, external sources of information have no effects on the SMEs competitive advantage. The originality of this research is to provide a multidimensional framework of the effects of innovation on the competitive position of SMEs.

The purpose of this study is to investigate the moderating role of digital marketing strategies on innovation through Artificial Intelligence (AI) mediating impact in Small and Medium Enterprises within Saudi Arabia. Advanced analytics tools analyzed data from KSA SMEs to establish the role of AI, customer behavior, and experiences in product and process innovation. Artificial intelligence boosts product and process innovation with unconventional customer knowledge. Integrating AI combined with digital marketing to improve decisions and efficiency, to increase understanding of customer dynamics for sustaining growth and promoting collaborations. Using AI-empowered digital marketing strengthens Saudi SMEs advancement by promptly reacting to market motions. Sustainability practices attract the environmentally conscious consumer. This research provides actionable insights for SMEs who want to employ digital marketing and AI strategies and contribute to building an economic environment in Saudi Arabia.

Research on digital literacy, knowledge management and process innovation variables has not been widely carried out in Indonesia, therefore more studies need to be carried out immediately since small and medium enterprises (SMEs) play an important role in economic activities. The purpose of this research is to investigate the effect of digital literacy on knowledge management, digital literacy on process innovation and financial management on process innovation. The research method is quantitative using partial least square structural equation modeling (SEM) analysis with data analysis tools using SmartPLS 3.0 software. The study involved 489 respondents who owned SMEs and it was determined using simple random sampling. The type of variable scale used is the ordinal scale. The rating scale for each statement uses a rating scale technique with a Likert scale type. Online questionnaires are distributed through online media, the data analysis stage is the outer model test, namely the validity and reliability test and the inner model test, namely the hypothesis test or significance test. The independent variable of this research is digital literacy, the mediating variable is knowledge management, and the dependent variable is process innovation variable. Based on the results of research data analysis it was found that digital literacy had a positive and significant relationship on knowledge management, digital literacy had a positive and significant relationship on process innovation, knowledge management had a positive and significant relationship on process innovation. Knowledge management played as full mediators in the relationship between digital leisure variables and process innovation.