Small and medium enterprises (SME) are the basic economic force in the European Union. Their competitiveness and successful future development are the key to European cohesion and economic growth. Controlling as a management tool supported by corporate culture and communication should offer opportunities for SMEs growth, stability and future development within the Industry 4.0 environment. The aim of this research is to determine the impact of the controlling management system, communication and corporate culture on SMEs' performance, stability and competitiveness. To achieve this aim, 371 European SMEs were researched using PAPI method, the data covered the period of 2017-2019. Two main research questions and 5 hypotheses were formulated. For evaluating the research data, statistical methods were used and the obtained results were verified by experimental testing, applying knowledge from the companies with focus on what has been changed. The research results offer important information and applied ideas in the field of communication efficiency and corporate culture with the emphasis on controlling as a managerial SMEs tool.