The aim of current study is to explore the impact of digitalization on the firm performance with the help of mediating role of smart technologies. This study used a valid and well-structured questionnaire to collect the data from 150 respondents of 7 SMEs in Pakistan. This study used PLS-SEM techniques to examine the measurement and structural of the model. The empirical results of this study found that digitalization has considerably direct impact on the firm performance, thus in this condition the incorporating smart technologies play significant medicating role to develop the link between the digitalization and firm performance. Further this study explained that smart technologies is important tool to the SMEs of Pakistan for seeking new markets, establishing the novel products, getting the consumer satisfaction, achieving high level of production and to boost up overall firm performance. In the end, the policy recommendation of this study paved the way for the management of the SMEs to use sensible step for converting the traditional supply chain to digital supply chain by using digital business model.