DIGITAL TRANSFORMATION AS A CATALYST FOR SME INTERNATIONALIZATION
DOI:
https://doi.org/10.35631/IJEMP.935048Keywords:
Digital Transformation, SME Internationalization, Internal Digitalization, External Digital PlatformsAbstract
This paper explores digital transformation as a strategic catalyst for small and medium-sized enterprise (SME) internationalization. Digital transformation alters traditional market expansion by establishing three operational mechanisms: expanding foreign market access through digital marketing and e-commerce, strengthening international competitiveness via business model innovations, and optimizing internal resources through data-driven automation. Furthermore, SME internationalization relies on a dual-engine framework that combines internal digitalization with external digital platforms. High levels of internal digital maturity build organizational absorptive capacity and dynamic capabilities, which enable SMEs to effectively utilize external platform infrastructures without suffering from platform dependence. Conversely, external platforms compress entry timelines and lower transaction costs for global market expansion. The success of this digitally driven internationalization is moderated by internal organizational enablers such as strategic leadership vision, digital resilience, dynamic capabilities, and a skilled workforce alongside external systemic barrier. Internal resource constraints, technical skill deficits, regulatory cross-border compliance, and complex digital trade policies often restrict continuous global scaling. Practically, managers must integrate external platform adoption with internal organizational restructuring and continuous workforce upskilling rather than relying solely on software implementation. Policy interventions should prioritize targeted export promotion programs, robust digital infrastructure, and streamlined cross-border regulations to help SMEs overcome market entry barriers.
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