Purpose – The aim of this study is to explore and investigate the influence of Digital Organizational Culture (DOC) on Sustainable Competitive Performance (SCP) among SMEs in Indonesia. It further investigates the mediating role of CSR Digitalization (DCSR), highlighting the strategic value of digital culture and CSR practices in strengthening long term performance within the context of an emerging economy. Design/methodology/approach – For this study, quantitative method was employed using a structured questionnaire which were distributed through Populix. The data were from 143 SME owners and top managers in East Java. The responses were analysed using PROCESS Hayes Macro Model 4 to assess both direct and mediating effects between DOC, DCSR, and SCP. Findings – The result of the study proves that DOC has a significant positive influence on SCP, both directly and indirectly which is through DCSR. The study confirms a partial mediation effect happens in the theoretical model, which indicates that a strong digital culture facilitates the effective use of digital CSR tools, which in turn improve sustainable competitive performance. Research limitations/implications – This paper is limited to SMEs in East Java, using a cross-sectional design and self-reported data, which increases the chance of bias and create a limitation to be applied on a different emerging economies environment. Future research is highly recommended to adopt longitudinal approaches, including SMEs from diverse regions or economies, and should consider external stakeholders’ perspectives to better capture the evolving roles of DOC and DCSR. Practical implications – SME leaders are encouraged to improve digital organizational culture to support CSR digitalization and improve the sustainable competitive performance. Policymakers should promote digital readiness through training, funding, and literacy programs to improve SME competitiveness and sustainability. Originality/value – This study introduces a revised theoretical model by positioning DOC as a direct predictor than a moderator. It contributes to the resource Based View (RBV) by highlighting the strategic importance of intangible assets especially digital culture and CSR digitalization, in improving SME competitiveness in emerging markets. To the best of the author’s knowledge, this topic is relatively new in Indonesia. Paper type Research paper.