Businesses model innovation: a key role in the internationalisation of SMEs in the era of digitalisation

 

 

The study investigates the relationship between digital technology and the degree of internationalisation of small and medium sized enterprises. Small and medium interprises significanty contribute to growth in global industrial economies in terms of inovation, production and employment. SMEs resources and capabilites might influence internationalisation. International business has significantly transformed due  to digital technology which completenly changes internationalisation strategies and procedures.

 

SMEs can benefit greatly from operating in the iinternational marketplaceal marketplace, including access to larger markets, technological benefit, technical level upgrades, risk reduction, amd financing. However, SME internationalisation experiences common barriers, including limited human, financial, and informational resources. Furthermore, SMEs also need more internal management capabilities to navigate volatility, uncertainly, complexity, and ambiguity (VUCA).

 

Digital Technology have a significant impact on the capacity of SMEs to endeavour globally, generate and supply value, refine their internationalisation strategis, enchance their services and products, reallocate resources, and foster entrepeneurial spirit and business innovation in global markets is notably influenced.

Business model (BM) could be characterised and evaluated based on the building blocks: customer segments, value propositions, channels, customer connections, income streams, essential resources, fundamental operations, meaningful partnerships, and cost structure. As new products and technology emerged, BMs had to be updated and transformed into a more targeted model that con sidered innovation, creating the term BMI. 

BMI is the process of designing a new or modifying the firm’s extant activity system, modifying or improving at least one of the value dimensions, which is referred to as designed, novel, non-trivial changes to the critical elements of a firm’s business model and the architecture linking these elements. Previous works emphasise the dynamic nature of BMI, characterising it as an iterative process and ongoing learning, where businesses evolve their business models through continuous improvement.

And the last decade has been dominated by the rapid creation of new business models with a strong emphasis on digital technology, which may change loca tion-based restrictions, affecting the value of innovation. Regarding business model influence, one of the primary innovations created by digital technology is the emer gence of new models distinguished by a reduced dependence on physical components.

 

Resume by Eva Nur Fadhilah