Najdat Mustafa Musaib, Tuqa Abdalnafie Taha, Lidija Kraujalienė
This study investigates the impact of digital transformation on brand value in small and medium-sized enterprises (SMEs) and examines the mediating roles of brand trust and perceived service quality. While digital transformation has been widely discussed in the literature, empirical evidence linking digital transformation to brand-related outcomes in SMEs remains limited. A quantitative research design was employed, and data were collected from 300 SMEs registered with a Chamber of Commerce and Industry. Partial least squares structural equation modeling (PLS-SEM) was used to test the proposed research model and hypotheses. The results reveal that digital transformation has a significant positive effect on brand value. Furthermore, digital transformation significantly influences brand trust and perceived service quality, both of which partially mediate the relationship between digital transformation and brand value. The structural model demonstrates moderate to substantial explanatory and predictive power, highlighting the strategic role of digital capabilities in SME branding. This study contributes to the literature by integrating digital transformation and branding theories and empirically validating the mediating mechanisms of trust and service quality in the relationship between digital transformation and brand value in the SME context. The findings suggest that SME managers and policymakers should consider digital transformation as a strategic branding investment. Supporting SMEs’ digital capabilities can enhance brand equity, competitiveness, and sustainable growth. This research provides one of the few empirical structural equation models examining how digital transformation contributes to brand value in SMEs, offering a comprehensive framework for both researchers and practitioners.