In the context of China’s rapidly evolving innovation economy, high-tech Small and Medium Enterprises (SMEs) have emerged as critical drivers of industrial transformation and sustainable development. This study investigates the impact of digital transformation and strategic innovation capabilities on the long-term sustainability of technology-based SMEs. Drawing on empirical data from enterprises located in Zhanjiang Hi-Tech Industrial Park, Shanghai, the research examines how digital infrastructure, innovation strategies, organizational learning, and leadership behaviors shape sustainable business performance. The study identifies three core enablers of SME sustainability: digital integration in operations, strategic alignment of innovation goals, and adaptive leadership. Findings reveal that SMEs with proactive digital strategies and strong innovation capabilities exhibit greater resilience, growth potential, and competitive strength. These results highlight the importance of supportive policy frameworks and the development of digital ecosystems to empower SMEs amid technological disruption and market uncertainty. This research contributes to the body of knowledge by offering strategic insights to enhance the innovation-led sustainability of high-tech SMEs in China.
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