Search Results (62)

This study synthesizes the rapidly expanding evidence on how digital technologies reshape international trade, with a particular focus on small and medium-sized enterprises (SMEs). Guided by two research questions—(RQ1) How do digital tools influence the volume and composition of cross-border trade? and (RQ2) How do these effects vary by countries’ development level and firm size?—we conducted a PRISMA-compliant systematic literature review covering 2010–2024. Searches across eight major databases yielded 1857 records; after duplicate removal, title/abstract screening, full-text assessment, and Mixed Methods Appraisal Tool (MMAT 2018) quality checks, 86 peer-reviewed English-language studies were retained. Findings reveal three dominant technology clusters: (1) e-commerce platforms and cloud services, (2) IoT-enabled supply chain solutions, and (3) emerging AI analytics. E-commerce and cloud adoption consistently raise export intensity—doubling it for digitally mature SMEs—while AI applications are the fastest-growing research strand, particularly in East Asia and Northern Europe. However, benefits are uneven: firms in low-infrastructure settings face higher fixed digital costs, and cybersecurity and regulatory fragmentation remain pervasive obstacles. By integrating trade economics with development and SME internationalization studies, this review offers the first holistic framework that links national digital infrastructure and policy support to firm-level export performance. It shows that the trade-enhancing effects of digitalization are contingent on robust broadband penetration, affordable cloud access, and harmonized data-governance regimes. Policymakers should, therefore, prioritize inclusive digital-readiness programs, while business leaders should invest in complementary capabilities—data analytics, cyber-risk management, and cross-border e-logistics—to fully capture digital trade gains. This balanced perspective advances theory and practice on building resilient, equitable digital trade ecosystems. Full article

This study explores the internationalization of small and medium enterprises (SMEs), emphasizing the critical role of competent managerial abilities. Specifically, it investigates the sustainable role of managerial capabilities in directly facilitating SMEs’ entry into international markets, or whether these capabilities first assist in risk management and resource utilization, supporting international expansion. We propose that SMEs with skilled and capable managers are better equipped to manage internal risks and leverage available resources, thereby enhancing their internationalization efforts. Drawing on empirical data from 191 Chinese SMEs, our findings support the proposed model, revealing that managerial capabilities contribute to internationalization indirectly—this relationship is fully mediated by risk management and resource utilization. This study recommends that SMEs prioritize building a sustainable management team capable of navigating internal challenges to successfully pursue international growth. Our research contributes to the resource-based view and the Uppsala model of internationalization by contextualizing the role of managerial capabilities, risk management, and resource utilization in the internationalization processes of SMEs. Full article

This study introduces the concept of DEEPEIA, a novel deep learning (DL) platform designed to recommend the optimal export market, and its ideal foreign champion, for any product or service offered by a small and medium-sized enterprise (SME). Drawing on expertise in SME internationalization and leveraging recent advances in generative artificial intelligence (AI), this research addresses key challenges faced by SMEs in global expansion. A systematic review of existing platforms was conducted to identify current gaps and inform the conceptualization of an advanced generative DL recommender system. The Discussion section proposes the conceptual framework for such a decision optimizer within the context of contemporary technological advancements and actionable insights. The conclusion outlines future research directions, practical implementation strategies, and expected obstacles. By mapping the current landscape and presenting an original forecasting tool, this work advances the field of AI-enabled SME internationalization while still acknowledging that more empirical validation remains a necessary next step. Full article

The research concentrates on determining the degree of internationalization of born global SMEs, believing that some push factors determine internationalization, pull factors, and internal firm-specific factors. Three important factors were found in looking into the causes of internationalization in born global firms: push, pull, and internal firm-specific factors. The study used a survey instrument with a sample of 280 manufacturing-related SMEs chosen from manufacturing clusters in India. A metric called the “index of internationalization” is used to gauge how internationalization in SMEs takes shape. The results demonstrated that internal firm-specific factors influence the internationalization of firms relatively highly compared to push and pull factors. The results unequivocally demonstrate that developing economies have distinct factors that cause internationalization, opening up new avenues for further study. The research aids in the identification of the elements that will enhance early internationalization and tries to draw the attention of young entrepreneurs. This research also helps prioritize the factors responsible for early internationalization. These findings are pertinent for the practitioners and researchers working in this area. This research is helpful for start-ups looking for global opportunities; this research categorizes factors significant in the global journey of the born global firms. Full article

Small enterprises are essential in supporting economic growth, particularly in emerging countries. Due to their constrained resources and capacities, many small businesses in developing nations encounter intricate obstacles when trying to enter the global market rapidly. The study is intended to develop a theoretical framework that can reveal the essential and integrated resources, and capabilities in the internationalization process. Instead of literature investigations, multiple case studies were adopted to explore the process of achieving the international success of Indonesia’s export-oriented small enterprises. In-depth interviews with twelve small enterprises across the culinary, fashion, and craft sectors were conducted to collect qualitative data. A content analysis followed the input–process–output–outcome structure as the basis for developing the robust framework. Based on the Resource-Based View (RBV), this study reveals the synergistic role of production, networks, marketing, learning, and legal capabilities in creating competitive advantages that support business continuity and sustainability. Research findings reveal that successful internationalization is not achieved by a single capability but through an integrated bundle of capabilities that can serve market needs. This study contributes to the literature by offering a comprehensive framework that maps the input–process–output–outcome structure of the internationalization process and offers practical insights for policymakers and practitioners aiming to enhance SME competitiveness. The results underscore the importance of capability development and government support in facilitating SME global expansion. Ultimately, this study provides a basis for further investigation into the dynamic capabilities that SMEs need to thrive in international markets. Full article

This paper investigates the key drivers influencing the internationalization of agricultural small and medium-sized enterprises (agri-SMEs) in Latin America, with a particular emphasis on the role of social and ethnic networks. Focusing on Argentina, Brazil, and Chile—three of the region’s largest agricultural economies—this study examines how familial and cultural connections between descendants of European immigrants and European entrepreneurs facilitate the global expansion of agri-SMEs. Using a cross-sectional quantitative analysis, data from agri-SME managers reveal the importance of these networks in reducing market entry barriers by providing insider knowledge of foreign markets, regulatory conditions, and potential business partnerships. The findings demonstrate that ethnic networks significantly reduce market entry barriers, providing Latin American agri-SMEs access to essential insider knowledge on foreign markets and local regulations, thereby facilitating internationalization. Additionally, agri-SMEs that leverage these networks are better positioned to meet growing global demands for sustainable, traceable food products, gaining a competitive advantage in international markets. The strength and frequency of interactions within ethnic networks are positively correlated with the degree of internationalization, highlighting the importance of social capital in overcoming operational challenges. This paper contributes to the literature by highlighting the underexplored role of ethnic networks in shaping the international marketing strategies of agricultural firms and their capacity to adapt to evolving consumer behaviors. The study offers practical insights for supporting the global integration of agri-SMEs in Latin America, addressing both operational challenges and the increasing need for sustainable food production practices. Full article

Construction projects that are completed abroad involve not only the typical risks that are faced at home but also various complex risks that are specific to international transactions. However, little research has been conducted on the risks that exist in prefabricated construction projects, but they need to be discussed. This paper aims to analyze the operational and financial risks associated with the internationalization of small and medium-sized enterprises (SMEs) in the province of Quebec operating in the prefabricated wood construction sector in the American market. Firstly, a literature review was carried out on operational and financial risks in overseas construction projects. This research identified 36 risks, including 21 operational and 15 financial. Next, the risks identified were divided into eight categories: design, standards, coordination, resources, internal to the alliance, partner, customer, and market. Professionals from different types of wood prefabrication companies were then asked to identify the probability of occurrence and magnitude of the impact of each identified risk. This information was used to calculate the criticality of each risk using Monte Carlo simulation to generate scenarios for use as a decision-making tool in risk assessment. The results show that highly critical operational risks are concentrated in the operational risk categories of coordination and resources. It should be noted that the most critical risk is that of ineffective communication and coordination, which is linked to project governance. On the other hand, financial risks with high criticality are spread across the four financial risk categories. A comparison of the criticality of the operational and financial risks identified revealed that the financial risks were the most critical. Full article

This article introduces a new theoretical concept, the “foreign champion”, which attempts to solve the principal–agent problem and improve academic understanding of foreign market entry decisions by analyzing what experts in the field consider to be best practices. Based on empirical research into the determinants of SME internationalization success, semi-structured interviews (n = 12, t = 5 h 10 min.) were conducted with industry experts, including one academic, government officials, chamber and association leaders, a venture capitalist, and several CEOs, and key testimonies were studied using qualitative analysis software. The results shed light on effective internationalization strategies and common market entry mistakes. Despite the perception of saturation, the prominence of the experts, and the large sample, there may be limitations, such as not covering several regions. The originality of this study lies in its conceptual framework, the insights gained from the select interviews, and a new concept of foreign market entry. Full article

This paper assesses how the local institutional environment affects the internationalization of manufacturing small- and medium-sized enterprises (SMEs) in Vietnam, exploiting a multi-dimensional institutional index and large-scale enterprise data. The authors find that the internationalization of manufacturing SMEs was influenced by several institutional aspects, such as the transparency of local authorities, access to land, informal charges, and local labor policies. Improvements in these institutional aspects can substantially enhance participation in international trade and its magnitude. This pattern diverges from their large and foreign counterparts, whose trade participation is primarily affected by land access and the transparency of local authorities. Additionally, the authors find heterogeneous effects of the institutional environment on SMEs in different manufacturing industries. Heavy industries rely more on the costs of entry and time costs, while land access is crucial for SMEs in manufacturing industries that require large-sized factories. Our findings suggest that the government should provide a supportive institutional environment to SMEs, which will lead to higher international participation and boost domestic economic growth. Full article

In Romania, the pandemic and post-pandemic effects, coupled with the nearly 80% increase in internet service penetration, have led to an extraordinary acceleration of e-commerce activity. Rising rents and operational costs, heightened financial challenges, and the improved quality and accessibility of internet connectivity have prompted some Romanian SMEs to sell their products and services online or through other online communication networks. In this context, it becomes essential to conduct marketing research to identify factors that could stimulate business performance. The purpose of this study is to assess the impact of e-marketing orientation, sustainability orientation, and technology orientation on the performance of online SMEs in Romania. Hypothesis testing and validation of the proposed construct model were conducted using structural equation modeling with partial least squares (SEM-PLS) and multi-group analysis (PLS-MGA). The research results have indicated that all three independent variables have positive and significant effects on online SMEs’ business performance. Finally, the study suggests that SME managers should focus on integrating these three variables and on selling products and services both nationally and internationally through the internet if they aim for long-term business performance growth. Full article

Purpose: The alliance project “Physics for Food” aims to invent new physical technologies for sustainable agriculture and food production in Mecklenburg-Western Pomerania, an agrarian region in northern Germany. This article may serve as an example of good practice for regional collaboration and funding acquisition between academia and the industry, especially SMEs, that may be replicated in other rural contexts. Approach: The project consortium consists of a triple-helix setting of scientists from university and research institutes as well as technology suppliers, seed producers, and farmers. The German Federal Ministry of Education and Research (BMBF) funds the project in a special program called “WIR!” that addresses innovation and structural transformation of lagging regions in Germany. Findings: The program encourages development of regional innovation concepts and supports confederations that cross disciplinary, industrial, institutional, and administrative boundaries and thrive on civic involvement. Today already, there is huge potential and an increasing demand for the development and the supply of novel non-chemical alternatives in plant and storage protection in agriculture and food production. Originality: The project aims to lay the foundation for startup companies based in the region to act as innovative technology providers and to create jobs in the region while making the new technologies available nationally and internationally. The application of physical methods will decrease costs, conserve resources, and eventually contribute to protecting the environment. Full article

Internationalization has become increasingly important to the competitiveness of firms of all sizes, including small and medium-sized enterprises (SMEs). SMEs play a crucial role in the development of lower-income countries. In Bangladesh, SMEs account for between 80 and 85 percent of industrial employment and 23 percent of total employment and are critical to economic growth. Though the literature on firm internationalization is well established, the internationalization process of SMEs from developing countries, such as Bangladesh, remains relatively under-explored. The main aim of this study is to explore factors that hinder the internationalization of SMEs in a developing country, with Bangladesh serving as the context of the investigation. Qualitative research methods were adopted, comprising semi-structured interviews with leaders of 16 SMEs in Bangladesh. Six major themes were identified as hindrances to the firms’ internationalization: (1) lack of market knowledge, (2) lack of family support, (3) the proliferation of ‘scammer buyers’, (4) the (negative) involvement of third parties, (5) mismanagement of domestic ports, and (6) unregulated local market. Regarding positive factors, only one theme emerged from the data, the strong support from the local government, which provides considerable backing for local SMEs with international ambitions. This study’s primary contribution and originality lie in the context of the investigation, with Bangladesh primarily overlooked in the international business literature. Therefore, the study presents several novel insights into the internationalization process of SMEs. Full article

Through the methodology of a case study, this paper presents a holistic analysis of the relationship between innovation capacity, entrepreneurial orientation, flexibility, and environmental factors. Three studies were conducted in the context of chemical-pharmaceutical industries, SMEs, in a small economy. Likewise, they analyze the relationship between the innovation capacity and internationalization of those companies. The studies provide further evidence of the relationships between areas of interest, where links among entrepreneurial orientation, flexibility, externalities (local and international), and innovation capacity are clear. Finally, this paper contributes to the theory-building on innovation capacity and internationalization from a scholarly perspective while presenting a practical view for practitioners. Full article

This study seeks to explore how owner–managers of small and medium-sized enterprises navigate a constantly changing and turbulent environment following a traumatic experience and how they build resilience in their organizations by drawing upon memories through a complex adaptive system lens. Specifically, this study investigates the major factors shaping the management strategies of SMEs operating in the infrastructure construction sector in North Cyprus, where foreign aid/the patron country is the primary source of financing and therefore the major driver of strategies. To gather primary data, semistructured interviews were conducted with owner–managers of grade 1 construction SMEs, who can participate in internationally financed public projects. A qualitative approach using thematic analysis was adopted, and findings indicate that the most influential factor shaping the management strategies of SMEs in North Cyprus is the macro characteristics of the sociopolitical environment. These characteristics evoke memories for owner–managers and lead to a dissipative approach towards managing their SMEs, creating resilience in the face of North Cyprus’ ever-changing political environment. Full article

Building from the authors’ plan to conceptualize an artificial intelligence (AI) solution that allows SME owners to make more sustainable choices in foreign-market-entry decisions, this systematic literature review (SLR) researches the state-of-the-art in SME internationalization from 1920 to 2023 (since 2014 in more depth). The authors gather all articles in Scopus, tagged with the keyword internationalization (25,303 as of January 2023), order them by citations, and download the top 2000 papers’ metadata for analysis and debate, then narrow it to reviews and SMEs, and use bibliometric visualization and qualitative data analysis software (VOSviewer and NVivo) to identify the key players and determinants of export performance/intensity, and finally draw conclusions. The results reveal key internationalization theories, top authors, reviews, and sources and expand Werner´s determinants via several tables and figures. The findings reveal the rise of relevance regarding theories related to social narratives and corporate activism, but also show that there is still much to do in SME internationalization, namely on what makes a small firm well established in their native market and have success in other countries. The contribution to science is an update on the topic and the pinpointing of several trends and gaps, such as a focus on services, theory integration, longitudinal studies between antecedents and performance, strategic fit versus opportunism, network theory on niche marketing, born-“glocal” strategies, disruptive technologies, and discourse variables, for the future of SME export success. Full article