A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy

Wenny Eka Prasetiawan ; Sudarmiatin Sudarmiatin ; Heri Pratikto
International Journal of Management and Digital Sc... 📅 2026 Vol 3, No 2 🔗 DOI: 10.70062/managementdynamics.v3i2.535
Abstract
The internationalisation of SMEs in the era of the global economy is still faced with low strategic readiness, limited innovation capacity, and sub-optimal digital transformation. This study aims to test a model of SME internationalisation strategy based on innovation and digital transformation. The study employs a quantitative approach using a cross-sectional survey design involving 200 owners or key managers of SMEs in East Java, selected through purposive sampling. Data were analysed using SEM-PLS through measurement model evaluation, structural model evaluation, and bootstrapping tests. The results indicate that innovation has a positive effect on digital transformation and internationalisation strategy, whilst digital transformation has a positive effect on internationalisation strategy. The indirect effect of innovation on internationalisation strategy via digital transformation is also significant, indicating partial mediation. These findings confirm that the internationalisation of SMEs becomes more effective when innovation and digital transformation are coherently integrated into business models and external market orientation. Implicitly, strengthening the global competitiveness of SMEs requires simultaneous intervention in business model renewal, digital capabilities, and policy ecosystem support.
Keywords
Digital Transformation; Innovation; Internationalisation Strategy; SEM-PLS; SMEs
How to Cite

Wenny Eka Prasetiawan, et al. (2026). A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy. International Journal of Management and Digital Sciences, 3(2). https://doi.org/10.70062/managementdynamics.v3i2.535

Wenny Eka Prasetiawan; Sudarmiatin Sudarmiatin; Heri Pratikto, "A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy," International Journal of Management and Digital Sciences, vol. 3, no. 2, 2026.

Wenny Eka Prasetiawan; Sudarmiatin Sudarmiatin; Heri Pratikto. "A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy." International Journal of Management and Digital Sciences, vol. 3, no. 2, 2026.

Wenny Eka Prasetiawan; Sudarmiatin Sudarmiatin; Heri Pratikto. "A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy." International Journal of Management and Digital Sciences 3, no. 2 (2026).

Wenny Eka Prasetiawan, et al. (2026) 'A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy', International Journal of Management and Digital Sciences, 3(2). doi: 10.70062/managementdynamics.v3i2.535.

Wenny Eka Prasetiawan; Sudarmiatin Sudarmiatin; Heri Pratikto. A Model for the Internationalisation Strategy of SMEs Based on Innovation and Digital Transformation in the Era of the Global Economy. International Journal of Management and Digital Sciences. 2026;3(2).

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