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

Abstract

The study investigates the relationship between digital technology (DT) and the degree of internationalisation of small- and medium-sized enterprises (SMEs). The theoretical model is further extended by reviewing the mediating effects of business model innovation (BMI). The study employed partial least squares structural equation modelling (PLS-SEM) to test the hypotheses based on the cross-sectional data from 495 SMEs in Vietnam. The findings provide a novel perspective on the vital role of DT in BMI. However, DT poses challenges for SMEs in the degree of the internationalisation process. This study combines the internationalisation theory, particularly the Uppsala model and the resource-based view to examine the impact of DT on the internationalisation of SMEs through the mediating role of BMI.