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This study investigates the approach required to achieve competitive advantages in the digital supply chain. Moreover, the study examines how digital transformation of companies can fuel smart technologies, leading to improved relationship performance. The results of the survey given to 280 Finnish small and medium-sized enterprises (SMEs) show that digital transformation of the companies alone cannot enhance relationship performance, and that it needs to be coupled with smart technologies to achieve this goal. This means that smart technologies fully mediate the relationship between digital transformation and relationship performance.