Prof. Dr. Hasan Aljuhmani2026-04-142026-04-14https://dspace.academy.edu.ly/handle/123456789/1942increasingly tied to the strategic use of e-commerce infrastructure. Digital platforms serve as enablers of rapid experimentation, product diversification, and iterative development, which are crucial for innovation. E-commerce tools also facilitate knowledge sharing and customer co-creation, allowing SMEs to continuously adapt their offerings based on real-time feedback (Zygiaris, 2022). Thus, e-commerce capabilities do not merely support existing operations—they transform them by embedding innovation into the organizational fabric.The rapid advancement of digital technologies has redefined the competitive dynamics of small and medium-sized enterprises (SMEs), particularly through the integration of e-commerce capabilities. These capabilities, encompassing digital platforms, online transaction systems, and data-driven customer engagement tools, have become instrumental in reshaping business performance across various dimensions. As SMEs navigate increasingly complex and digitally saturated marketplaces, leveraging e-commerce tools is no longer optional but essential for sustaining competitive advantage and fostering long-term growth.The Influence of E-Commerce Capabilities