This study examined the effect of digital entrepreneurial skills on the performance of small and medium-scale enterprises (SMEs) in Anambra State, Nigeria, with particular focus on knowledge management and technological innovation as key dimensions. A descriptive survey design was adopted, and data were collected from 298 SME owners and managers using a structured questionnaire. The data were analyzed using simple linear regression at a 5% level of significance with SPSS version 20. The findings revealed that knowledge management has a positive and significant effect on SMEs’ competitive advantage (B = 0.752, t = 3.255, p = 0.002), while technological innovation also exerts a positive and significant influence on SME performance (B = 0.763, t = 3.686, p < 0.001). The results suggest that effective knowledge management practices and the adoption of innovative technologies enhance operational efficiency, adaptability, and long-term sustainability of SMEs. The study concludes that strengthening digital entrepreneurial skills is essential for improving SME performance and competitiveness in a dynamic business environment. It recommends that SME operators invest in structured knowledge management systems and integrate emerging technologies into their operations to sustain growth and competitive advantage.
Keywords: Digital entrepreneurial skills, Knowledge management, Technological innovation, SME performance, Competitive advantage, Nigeria.