DIGITALIZATION AS A DRIVER OF SME INTERNATIONALIZATION
Abstract
This article provides an in-depth analysis of digitalization as a fundamental driver of SME internationalization in the modern global economy. The study explores how the adoption of digital technologies—such as e-commerce, cloud services, digital platforms, CRM/ERP systems, and fintech solutions—enables SMEs to access international markets, broaden their customer base, and integrate into global value chains. A comparative review of digital internationalization strategies across various countries highlights the primary benefits and challenges of using digital tools in SMEs’ foreign economic activities. Special attention is devoted to the reduction of transaction costs and the strengthening of international partnerships enabled by digitalization. The research shows that digital tools streamline international transactions, automate documentation, and reduce both time and financial costs of cross-border operations, boosting export efficiency and competitiveness. Digitalization also fosters stable international relationships through communication platforms and shared digital workflows. Drawing on recent empirical studies and statistics from OECD, Eurostat, the World Bank, and national sources (2018–2024), the article demonstrates a clear positive link between digital adoption intensity and international sales growth among SMEs. It emphasizes significant disparities in digital transformation progress depending on a country’s economic maturity, infrastructure, and policy support. The most rapid internationalization is observed among SMEs in the US and EU, where policy, infrastructure, and targeted programs are most developed. The study proposes approaches to strengthen SME digital integration, including investment in infrastructure, digital literacy, and regulatory improvements. It highlights challenges faced by SMEs in transitional economies, such as Ukraine, including financing constraints and digital skill gaps. The findings confirm that digitalization catalyzes SME internationalization by opening new markets, increasing exports, lowering transaction costs, and enhancing global cooperation. The article concludes with suggestions for further research into sectoral and national specifics of digital internationalization and the sustainability of digital export models.
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