This study investigates the interplay between Human Resource Intellectual Development (HRID) and Digital Transformation Readiness (DTR) in enhancing Small and Medium Enterprise (SME) performance in South-West Nigeria. Employing a quantitative cross-sectional survey design, data were collected from 250 SME owners/managers. Hierarchical regression analysis reveals that HRID significantly boosts SME performance (β = 0.352, p < 0.01), while DTR exerts a positive direct effect (β = 0.281, p < 0.01) and moderates the HRID-performance relationship (β = 0.214, p < 0.05). The interaction plot indicates that high DTR amplifies the positive impact of HRID on performance. By integrating Resource-Based View (RBV) and Technology-Organization-Environment (TOE) frameworks, this research underscores the synergistic role of human capital development and digital readiness in driving SME competitiveness. The findings offer actionable insights for SME managers and policymakers, highlighting the need to prioritize HRID and DTR initiatives. The study recommends that SMEs owners and managers should strengthen human resource development initiatives by implementing structured training programmes, mentoring schemes, and knowledge-sharing mechanisms.
Keywords: Nigeria, SME Performance, digital transformation readiness, human resource intellectual development, moderation analysis
