Small firm internationalization using digital platforms: an assessment and future research directions

Digital technology has changed the nature of international business by reducing the costs associated with physical distance, thus making it easier to identify international opportunities and facilitating direct contact with suppliers, business partners, users, and potential customers in any foreign market. Defined as the process of rendering “an organization’s products, services, and processes […], along with the information associated with them, for marketing, sales, and distribution” internet compatible (Banalieva and Dhanaraj, 2019, p. 1373), digitalization has promoted radical changes in the way firms operate internationally.

The study of how firms internationalize using the internet has been pioneered by several scholars (e.g. Reuber and Fischer, 2011; Samiee, 1998; Sinkovics et al., 2013; Yamin and Sinkovics, 2006). While most of these studies focused on using corporate sites and email to perform international marketing functions and facilitate international customer relationship management, the ability of smaller firms to adopt digital internationalization was limited until the advent of digital platform ecosystems (DPEs). DPEs are meta-organizations (Kretschmer et al., 2022) organized around platforms via shared or open-source technologies (Jacobides et al., 2018), through which different actors interact, directly or indirectly, and co-create value (Senyo et al., 2019). The coordination and regulation characteristics are especially relevant as they shape users’ behavior and correct market failures, with the potential of setting “powerful network effects and complementarities into motion” (Boudreau and Hagiu, 2009, p. 188). Digital platforms are at the center of digital ecosystems, constituting a “set of technologies, components, services, architecture, and relationships” (Nambisan et al., 2019, p. 1465) that facilitate user interactions and transactions. Digital platforms can operate as “intermediaries or matchmakers whose core competency is reducing or eliminating transaction costs” using digital infrastructure governance mechanisms (Song, 2019, p. 579). The adoption of digital platforms by firms of all sizes allowed digital internationalization to become widespread. Digital platforms provide a cost-effective international market entry mode and enable intermediation, specialization, knowledge generation and dissemination, and the development of innovative business models. Furthermore, they have the potential of enhancing the speed and broaden the scope of internationalization while mitigating some of the inherent risks of entering foreign markets.

Despite the relevance of the phenomenon, research addressing digital internationalization in general and the specific role of digital platforms remains scarce, prompting several scholars to call for further investigation into the impact of digital platforms on firm internationalization (e.g. Cha et al., 2023; Stallkamp and Schotter, 2021). Nambisan et al. (2019) argue that scholars need to improve theories by examining this phenomenon, while Saari et al. (2022) point out that research on the influence of social media on the international growth of small and medium-sized firms (SMEs) is still in its infancy. This paper responds to these calls by conducting a systematic review of the literature on the internationalization of smaller firms using digital platforms, aiming to answer the following research question: How does the extant literature address the issue of international market entry for SMEs enabled by digital platforms? Although other literature reviews have addressed the interplay between digitalization and internationalization in general, none have focused on digital platforms and SMEs. This article presents an up-to-date systematic literature review that compiles, synthesizes, analyzes, and integrates the empirical literature on the internationalization of SMEs using digital platforms, offering possible future avenues to advance research.

After this introduction, the paper starts by exploring early studies on the Internet-enabled internationalization of small firms and the potential role and types of digital platforms that facilitate SME internationalization. It then reports how digital internationalization has been examined in previous literature reviews. The method section explains the data collection and analysis protocols applied to 51 empirical articles relevant to the study’s research question. These selected studies are examined to determine the extent to which the literature has explored digital platforms within SME internationalization. The study identifies the main themes, topics, and relationships among them, leading to an integrated framework of the key findings in the literature. The study concludes by suggesting areas and research questions for further investigation, including some of the phenomenon’s unexplored antecedents (internal, external, related to relationships or strategic issues) and outcomes.

This study contributes to the international marketing literature in three ways: (1) by compiling, analyzing and summarizing the theories, methods, contexts, and findings of empirical studies on SME internationalization using digital platforms conducted from 2016 to mid-2023; (2) by presenting a framework designed to guide future research efforts; and (3) by identifying existing gaps in the current research and proposing new research avenues to deepen the understanding of the phenomenon.

Early studies on the Internet-enabled internationalization of small firms delved into the antecedents, benefits, and requirements of the Internet in international activities (Reuber and Fischer, 2011), as well as its impact on the speed and scope of internationalization, particularly for SMEs with limited resources (Arenius et al., 2005). This literature acknowledges the Internet’s role as an export enabler by mitigating the liabilities of newness and foreignness (Cavusgil and Knight, 2015) and reducing transaction costs. The widespread use of the Internet made global connectivity more accessible, enabling firms to leverage their information-processing capabilities (Sinkovics et al., 2013) and to perform online international marketing functions (Samiee, 1998). Furthermore, online presence and interaction with customers from other countries could lower managerial perceptions of psychic distance, reducing export barriers (Yamin and Sinkovics, 2006). However, the scope of SME internationalization using the Internet was limited by management expertise, the firm’s experience with the Internet, and perceptions of the Internet’s effectiveness for international marketing (Moini and Tesar, 2005).

Despite the advantages, some scholars cautioned against viewing the Internet as a panacea for solving internationalization problems. Firms could fall into a “virtuality trap” by assuming they have enough knowledge about a foreign market and reducing efforts to learn more (Yamin and Sinkovics, 2006). Underestimating the importance of a physical presence in the market could harm their future export performance. In addition, independent websites – the focus of early studies on Internet-enabled firms – have proven expensive and difficult to maintain. They also attract only a limited number of visitors, especially if the firm lacks the resources to invest in websites in several languages (Saban and Rau, 2005).

However, the advent and adoption of digital platforms changed the nature and scope of digital internationalization. Digital platforms can help smaller companies overcome limitations associated with previous internet-enabled internationalization efforts. They not only leverage the inherent advantages of digitalization, but they allow companies to expand beyond geographic and industry boundaries. Moreover, they can reduce the liabilities of foreignness, newness and smallness associated with foreign market entry. For small businesses, digital platforms facilitate reaching a global customer base at a low cost and streamline sales, financial transactions, and customer relationship management (Manyika et al., 2016), enabling even the smallest firms to pursue internationalization.

Digital platforms that enable SME internationalization can be categorized into three main types: Sales Platforms, Interaction and Reach Platforms, and Support Platforms (Table 1).

Sales Platforms – Sales platforms facilitate transactions between actors who would otherwise be unable to interact (Jacobides et al., 2018). They include digital distribution platforms, like Apple’s App Store and Google Play Store, and global marketplaces like Amazon and eBay (Acs et al., 2021). These platforms benefit SMEs by providing access to a vast global consumer base with efficient search engines, enhancing trust in cross-border transactions (Zhu et al., 2019). Global marketplaces build a reputation in each location, assuring consumers of the credibility of unknown sellers (Petroni, 2021). Operationally, these platforms may offer from basic digital infrastructure to comprehensive fulfillment services (such as Fulfillment by Amazon). Sellers may also invest in additional value-added services and knowledge within those platforms, such as analytical data insights, search engine optimization, support to enhance product detail pages and images, and promotion and conversion strategies (Briedis et al., 2020). In addition to B2C marketplaces, platforms like Amazon Business and TaoBao cater to B2B transactions.

Interaction and Reach Platforms – Interaction and reach platforms, unlike two-sided platforms connecting users and service providers, can encompass up to six sides, connecting individuals, businesses, and various providers (app developers, ad service providers, influencers, etc.) in C2C, B2C or B2B combinations (Evans and Schmalensee, 2016; Song, 2019). They are mostly comprised of social media (e.g. Facebook) or content sharing apps (e.g. Pinterest) that were initially designed for community building and networking, having evolved into “platform organizations facilitating certain kinds of exchanges” (Alaimo et al., 2020, p. 27). They also act as matchmakers, reducing transaction costs and creating value (Song, 2019; Saari et al., 2022) in a controlled environment. Alaimo et al. (2020) argue that social media platforms facilitate product and service exchanges and provide access to essential data on prices, location, and reputation. Moreover, social media platforms enable the ‘sides’ to interact, enhancing brand exposure, engagement, knowledge exchange, trust building, loyalty, and sales intent (Saari et al., 2022) at a very low cost (Hurmelinna-Laukkanen et al., 2020), which is particularly advantageous for smaller companies with limited resources.

Support Platforms – These digital platforms contribute with resources, know-how, and tools, enabling SMEs to initiate online businesses. Specialized in specific services and technologies, they offer low-cost, faster, and more reliable options than internalizing the activity, allowing SMEs to venture into cross-border e-commerce without significant upfront investments. Some service provider digital platforms enable small businesses to set up proprietary and personalized websites (e.g. Shopify). Others provide information technology tools that assist SMEs in optimizing their global online marketing activity, such as search engines and ads efficiency, sales and customer service performance monitors (e.g. Dynamic Yeld, SISTRIX), operationalizing online transactions (e.g. PayPal, AliPay), using instant messaging for closer contact with customers (e.g. WhatsApp, Telegram), and acquiring funding for international expansion (e.g. Indiegogo, SeedInvest Technology).

SMEs’ can choose between two basic strategies when adopting digital platforms for internationalization. The first strategy involves using sales platforms with an existing global structure. This strategy works best for manufacturers seeking cost-effectiveness. An example of a digital platform that serves this strategy is AliExpress, which focuses on connecting international buyers with Chinese businesses. Depending on their strategic positioning and objectives, niche sales platforms focusing on a specific product type or category may also be an option for SMEs’ international expansion. The second strategy suits businesses interested in building a strong niche brand and requires developing a robust online presence to reach global consumers and solid marketing capabilities. However, SMEs often face resource constraints that hinder the adoption of this alternative. In this situation, interaction and reach platforms, as well as support platforms, can play a role by assisting SMEs in showcasing, selling, and shipping internationally through their own low-cost websites, with payments and shipment operationalized by a third party, along with other optional services.

Dagnino and Resciniti (2021, p. 969) defined digital internationalization as “the ways with which the design and implementation of a digital transformation path and the application of digitization processes and tools may help firms of all sizes thrive in international and global contexts.” Examining prior literature reviews offer a comprehensive overview of past research on digital internationalization ( Appendix). Eight recent reviews have explored the interplay between digitalization and internationalization, albeit from different perspectives and scopes. Five reviews were systematic, four employed bibliometric methods, and three were conceptual.

An in-depth look at the content of these reviews shows that the phenomenon of digitalization has been underrepresented in the literature on firm internationalization. Not only is the number of articles in each review limited – barring Feliciano-Cestero et al.’s (2023) review – but most articles primarily cover early uses of the Internet in international activities, particularly traditional Internet communication by e-mail and sites or digital advertising. Bergamaschi et al. (2021) provide a historical overview of the 1996 to April 2019 literature on the interplay between digitalization and internationalization. Feliciano-Cestero et al. (2023) analyze a broad range of journals from several disciplines covering 2002 to 2022, focusing on digital transformation’s positive and negative effects on internationalization at the individual, firm, and macro levels. Li et al. (2022) examined 121 articles published between 2007 and 2020 to determine how digital internationalization impacts theories of the multinational enterprise. These three reviews suggest that significant scholarly attention only started in 2016.

A limited number of articles in these reviews approach the phenomenon of digital platforms. For example, Katsikeas et al.’s (2019) review mentions a few articles on social media usage, but these articles typically focus on social media brand communities rather than on social media as business platforms for international activities. Bergamaschi et al. (2021) indicate that keywords relating to digital platforms only emerged at the end of their review period, while Feliciano-Cestero et al. (2023) identified the keyword e-commerce in eight articles underscoring the benefits of using digital platforms, almost all of them published after 2019. Ojala et al. (2022) do not specifically examine SMEs or digital platforms.

Concerning SMEs’ digital internationalization, Feliciano-Cestero et al. (2023) highlight the risks associated with digital internationalization and their lack of digital capabilities while briefly indicating potential benefits to SMEs’ performance. Although rooted in the international entrepreneurship literature, Vadana et al.’s (2020) review concerns metrics for examining the interplay between digitalization and internationalization in digitalized companies. Watson et al.’s (2018) literature review focuses on the extent to which the international marketing literature has examined relational, digital, and hybrid approaches to international market entry over 25 years ending in 2016. This review analyzes legal, logistical, market, and cultural considerations but does not specifically examine their impact on smaller firms or issues related to digital platforms, although it briefly mentions some benefits accrued by firms using them. Only Dethine et al.’s (2020) review focuses on SMEs’ digital internationalization. However, this review includes a small number of articles, with only one published in 2020. Among the 21 articles reviewed, four articles referred to social media specifically, and only two to digital platforms in general. All other reviews cover all types of firms, except for Li et al.’s (2022), which focuses on multinational enterprises.

This study conducted a systematic literature review on SME internationalization using digital platforms. A systematic literature review summarizes existing publications in a systematic, transparent, and reproducible way (Tranfield et al., 2003) to address a research question. Palmatier et al. (2018, p. 1) state that research integration and synthesis are “an important, and possibly even a required, step in the scientific process”. The method has gained prominence due to the exponential increase in information and publications in recent years (Snyder, 2019). It (1) synthesizes the literature, (2) supports better decision-making for policymakers, managers, and entrepreneurs, (3) provides new conceptual frameworks, and (4) pinpoints research gaps, and inconsistencies (Palmatier et al., 2018; Tranfield et al., 2003). Compiling and contrasting individual studies, a systematic literature review often delivers evidence on the state-of-the-art domain literature, paving the way for novel research questions and paths and building a solid foundation for advancing knowledge (Palmatier et al., 2018; Snyder, 2019).

A search protocol with predetermined inclusion criteria was established to ensure transparency and reproducibility. The selected papers were all empirical studies covering SME internationalization using digital platforms, excluding theoretical, conceptual, and viewpoint articles. The study included only peer-reviewed articles published in English from 2016 through June 2023. The year 2016 was chosen as the starting point due to three prior literature reviews (Bergamaschi et al., 2021; Feliciano-Cestero et al., 2023; Li et al., 2022) indicating a substantial surge in the number of articles linking internationalization and digitalization starting that year. Moreover, previous reviews already covered earlier research, and the rapid evolution of the topic warranted a more focused examination. Both Scopus and Web of Science databases were searched.

Because digital internationalization is a recent topic, adjacent and complementary terms were also included in the search. The terms used were “digitalization” OR “digital ecosystem” OR “social media” OR “digital platform” OR “e-commerce” OR “e-tailing” OR “cross-border commerce” OR “digital servic*” OR “information techonolog*” OR “e-business*” OR “global marketplace” OR AND “INV” OR “international entrepreneurship” OR “international new venture” OR “born global*” OR “micromultinational*” AND “small firm” OR “SME*” OR “small and medium enterprise*” OR “small company” OR “small and medium compan*” OR “SMC*” AND “export*” OR “international*” OR “global” OR “cross-border” OR “global value chain”, either at title, abstract or keywords. The initial selection was carried out by one of the authors.

The searches from Scopus and Web of Science resulted in 289 articles. Next, two authors screened the material independently, based on the title, abstract, and keywords. The third author decided on inclusion or exclusion when there were divergences in the screening. After exclusions related to repetition and non-adherence to the research question, 46 articles remained. Subsequently, five articles listed as references in the articles previously selected that met the inclusion criteria were added. At the end of this process, there was a final dataset of 51 articles. All selected articles were then read in full. Figure 1 summarizes the article selection process, displaying the number of papers in each step.

Each paper underwent individual and independent review by two authors, focusing on theoretical perspectives, research questions and/or hypotheses, constructs, and results. Individual summaries were prepared for each paper to facilitate the analysis, followed by summarizing key points in tables to allow for cross-referencing and comparison. A descriptive analysis of the selected papers examined their temporal and spatial distribution, research methods, theoretical perspectives, and types of platforms investigated. Subsequently, a qualitative analysis of the content was conducted. Analysis and conclusions were reached through iterative discussions involving all three authors, culminating in consensus. The analysis adopted a narrative structure, encompassing systematic extraction, verification, and narrative synthesis of findings (Petticrew and Roberts, 2006).

The temporal distribution of the papers reveals limited scholarly attention to the topic between 2016 and 2019, with only eight papers published. However, from 2020 to June 2023, there was a significant surge, with 43 papers published, and an additional 11 papers were released in the first seven months of 2023. Regarding research methods, out of the 51 papers, 30 were quantitative, 18 were qualitative, and three used mixed methods. Nearly two-thirds of the quantitative studies employed surveys, while the remainder relied on secondary data. Almost all qualitative papers used case studies. The dominant theoretical perspectives were the resource-based view (RBV), dynamic capabilities, transaction cost economics (TCE), and network theory. Various other theoretical approaches were adopted in the remaining papers, with 11 being empirically driven.

The spatial distribution of the studies is also noteworthy. Of the total, 11 are multiple-country studies, while the others are single-country studies, with authorship origin mostly following the locus of research. European countries predominantly contributed to the authorship and research locus, possibly due to their substantial number of internationalized SMEs. These studies comprise about half of the sample and cover numerous countries, with Italy, Sweden, and Finland being the most frequently studied. Other world regions are underrepresented: 13 papers explicitly examine Asian countries (nine on China), five look at the Americas, and four cover Australia or New Zealand. Notably, Africa is absent from the sample, except perhaps for studies involving multiple unspecified countries.

Regarding the types of digital platforms studied, eight papers did not specify a particular type, while four examined multiple types. E-commerce platforms were most frequently mentioned, followed by social media platforms. Other platforms investigated include crowdfunding, proprietary platforms, labor platforms, and gaming platforms. The samples varied in terms of industry, with a high concentration in manufacturing. Table 2 provides an overview of the selected papers’ characteristics, encompassing method, theoretical perspectives, sample details, analyzed countries, industries, and types of digital platforms. Additionally, Table 3 presents the focus of the analysis, issues examined, and main findings.

The literature on the internationalization of SMEs using digital platforms focuses on four main themes: resources and capabilities, the adoption process, benefits and risks, and environmental factors (Table 4).

Papers on the resources and capabilities associated with digital internationalization draw mainly from the RBV and the dynamic capabilities perspective but also from network theory, effectuation theory, signaling theory, exploitation-exploration theory, opportunity recognition framework, organizational learning, and TCE as theoretical perspectives.

Research from the RBV and dynamic capabilities perspective examines the availability (or lack thereof) of firm resources and capabilities and their influence on internationalization enabled by digital platforms. The RBV posits that sustained competitive advantage derives from a firm’s valuable, rare, imperfectly imitable, and non-substitutable tangible or intangible resources (Barney, 1991). Capabilities refer to a firm’s capacity to utilize its resources through organizational processes to achieve specific outcomes (Amit and Schoemaker, 1993). Dynamic capabilities represent a firm’s ability to effectively integrate, build, and reconfigure its internal competencies in response to a changing business environment, supported by organizational routines and managerial expertise (Teece et al., 1997; Teece, 2007). These capabilities are difficult to replicate due to their foundation in unique managerial characteristics, organizational routines, and culture that evolve over time (Teece, 2014). Eisenhardt and Martin (2000) argue that the value of dynamic capabilities for competitive advantage lies not just in the capabilities themselves but in how firms configure their resources.

The literature on SME internationalization using digital platforms extensively relies on these concepts to explain the utilization of resources and capabilities to initiate or foster international activities. Despite the general assumption that digital platforms may help small firms overcome their resource constraints to internationalize, Elia et al. (2021) do not confirm that smaller firms are less likely to adopt digital exports than larger firms. These authors also emphasize that the quality, rather than the quantity, of resources and capabilities is relevant for digital internationalization. Hultman et al. (2023) view social media platforms as a resource for emerging market SMEs to listen to and communicate with foreign customers. Other studies analyze to what extent investments in IT influence digital internationalization (Caputo et al., 2022; Cassetta et al., 2020). Digital capabilities examined include digital business capability (Anwar et al., 2022), digital platform capability (Elia et al., 2021; Jean and Kim, 2020), digital orientation (Crespo et al., 2023), IT capabilities (Cassetta et al., 2020; Cassia and Magno, 2022a; Kim and Lee, 2016; Mäki and Toivola, 2021), online marketing capabilities (Tolstoy et al., 2022) and digital knowledge sharing capability (Anwar et al., 2022), among others.

In general, digital capabilities seem to boost internationalization (e.g. Caputo et al., 2022; Cassia and Magno, 2022a; Mäki and Toivola, 2021), but this effect depends on whether firms approach digitalization with organizational innovativeness and invest in digital skills (Anwar et al., 2022; Cassetta et al., 2020). Depending on the constructs examined, other authors have reached somewhat different conclusions. For example, Anwar et al. (2022) find an indirect relationship between digital capabilities and SME internationalization; Elia et al. (2021) report that having an e-commerce manager enhances digital exports, and Hervé et al. (2020) conclude that digitalization impacts internationalization intensity via entrepreneurial orientation. Additionally, using digital platforms in internationalization positively impacts performance (Caputo et al., 2022; Eid et al., 2020; Jean and Kim, 2020). Rienda et al. (2021) also find a positive relationship between using social media platforms and international performance, but only for firms with a corporate website.

Other capabilities, such as international marketing capabilities, export operations capabilities, or marketing ambidexterity, are also explored in this literature. Export operations capabilities have been found to be negatively correlated with international e-commerce performance, whereas international marketing capabilities have shown both non-significant (Cassia and Magno, 2022a) and positive results (Kim and Lee, 2016). Some capabilities act as mediators, positively influencing internationalization through other capabilities. For example, online marketing capabilities impact international performance through marketing ambidexterity (Tolstoy et al., 2022) and certain digital capabilities through business model innovativeness (Anwar et al., 2022; Cassetta et al., 2020). Drawing from network theory, some studies explore how networking processes and capabilities play a role in digital internationalization. For instance, Fraccastoro et al. (2021a) examine how companies bundle their social media capabilities with foreign partners, and Lee et al. (2022) assess the role of experience in utilizing social media platforms.

Another set of studies focuses on environmental factors that impact internationalization using digital platforms. Issues examined include the impact of (1) home country institutional voids, foreign market uncertainty and foreign market competition (Jean et al., 2020), (2) platform-related national policies (Lee et al., 2023; Singh et al., 2023), (3) government support, industry factors, customer readiness and cultural factors (Hossain et al., 2021), as well as the impact of the Covid-19 pandemic (Guo et al., 2023; Pereira et al., 2022). The theoretical perspectives utilized encompass institutional theory, TCE, diffusion theory, the technology-organization-environment framework, and knowledge management theory.

Several papers have analyzed the adoption of digital platforms by small firms for their international activities, employing various theories, including the diffusion of innovations theory (Eid et al., 2020; Hossain et al., 2021), the technology acceptance model (Eid et al., 2020), the technology-organization-environment framework (Aronica et al.; Hossain et al., 2021), and the early mover advantages perspective (Deng and Wang, 2016).

While the adoption of digital platforms can positively impact internationalization (Rialp-Criado et al., 2020), their use does not guarantee foreign market entry (Aronica et al., 2021; Virglerová et al., 2022). Examining different groups of Spanish exporters based on their potential or actual adoption of social media platforms, Alarcón-del-Amo et al. (2018) found an association between social media expertise and export performance. Witek-Hajduk et al. (2022) identified proactive and reactive motives for e-commerce adoption among Polish firms. From an emerging markets perspective, Da Fonseca et al. (2023) found that the use of social media platforms supports the early international steps of Brazilian SMEs, primarily targeting the diaspora. However, sustained growth requires additional investments to establish a solid presence in foreign markets. Examining early adopters of cross-border B2B portals among Chinese firms, Deng and Wang (2016) found a U-shaped curve in early mover advantages.

Digital platforms can facilitate international opportunity development (Ahsan and Musteen, 2021), reduce export-related costs (Hui, 2020), lower entry barriers, and increase access to foreign networks (Jin and Hurd, 2018; Tobiassen and Pettersen, 2023). Additionally, digital platforms enable market information gathering and enhance online word-of-mouth (Fraccastoro et al., 2021b), among other benefits. However, even when utilizing digital platforms, local staff may still be necessary (Jin and Hurd, 2018), and social media networking alone may not suffice, requiring physical networking efforts (Tobiassen and Pettersen, 2023).

Implementing an internationalization strategy enabled by digital platforms can potentially develop or enhance capabilities that impact international performance. Knowledge acquisition has garnered particular attention from researchers. Cassia and Magno (2022b) and Tolstoy et al. (2023) report a positive relationship between knowledge acquisition via e-commerce platforms and performance. Guo et al. (2023) highlight how knowledge integration through digital platforms contributed to organizational resilience during the Covid-19 pandemic. Examining multiple case studies, Glavas et al. (2019) also provide evidence of digital platforms’ role in providing tacit and explicit knowledge for SME internationalization. Moreover, they assist SMEs in acquiring strategic flexibility (Fan et al., 2023) and digital internationalization experience (Glavas et al., 2019), thereby impacting performance. Two studies examined the benefits of domestic versus foreign digital platforms for international activities, yielding conflicting results. Lee et al. (2022) find that foreign platforms have a stronger impact on international orientation, while Williams et al. (2020) report that domestic platforms perform better regarding international orientation and knowledge acquisition.

Two papers addressed the risks of using digital platforms in SMEs’ internationalization from a TCE perspective. While one paper discusses digital platform risks, the other explores risk reduction in SME internationalization. Jean et al. (2020) report that product specificity and foreign market factors impact digital platform risk, which, in turn, negatively affects the internationalization scope of Chinese international new ventures, with entrepreneurial orientation potentially mitigating this impact. In contrast, based on a case study, Qi et al. (2020) examine how using e-commerce platforms may reduce uncertainty and opportunistic behavior in international activities.

Figure 2 presents an integrated framework for SME internationalization enabled by digital platforms. As discussed, adopting a digital international strategy depends on a company’s resources and capabilities (both digital and traditional) and environmental factors (industry, home country, and host country factors). Most studies focus on developing digital capabilities by firms to use in their international activities. In several studies, digital capabilities are combined with traditional capabilities, sometimes mediating the relationship between digital capabilities and internationalization outcomes. While adopting digital platforms can positively impact internationalization, it brings out risks and benefits (such as foreign knowledge acquisition, international opportunity development, digital internationalization experience, digital networking, and strategic flexibility) that must be balanced. Importantly, this is not the only possible path for companies with digital capabilities, as they can internationalize without adopting digital platforms.

Nearly all studies conclude that digital resources and capabilities, whether integrated into an international strategy enabled by digital platforms or not, generally have a positive impact on internationalization, measured by foreign market entry, sales abroad, international intensity, or international financial performance, as well as specifically on the firm’s digital internationalization. Learning emerges as a crucial element in this process, as firms acquire knowledge and experience in international and digital operations. This learning trajectory enhances the company’s initial resource endowment, leading to a virtuous cycle with long-term benefits.

Research on digital internationalization and internationalization enabled by digital platforms is still in its infancy. Scholars have primarily focused on investigating the early stages of the adoption process, the antecedents of the phenomenon, and the benefits accrued by SMEs leveraging digital platforms for international market entry. However, there remain numerous unexplored research avenues that offer opportunities to further enhance our understanding of this phenomenon (Table 5).

First, existing research has primarily focused on the antecedents of internationalization enabled by digital platforms, emphasizing internal antecedents related to firms’ resources and capabilities, as well as some external antecedents such as platform type, industry characteristics and country-specific factors. The most frequently employed theoretical perspectives in the empirical literature are the RBV and the dynamic capabilities perspective, which align with efforts to understand the resources, capabilities, and transformative effects associated with adopting digital platforms for internationalization. However, there are other antecedents (and combinations thereof) that warrant further investigation. These include macro-level factors, such as cultural and institutional characteristics, the home and host country levels of economic development, the nature of virtual distance, and meso-level factors related to different platform types and their characteristics. Additionally, micro-level factors internal to the firm, such as the acquisition and relevance of tacit knowledge, issues related to resource configurations (Eisenhardt and Martin, 2000), capability orchestration, and managerial and organizational characteristics, should be explored in comparison to those identified in existing literature on SMEs’ traditional internationalization. As to external factors, institutional theory can be a valuable theoretical perspective to examine these issues.

Second, a significant research opportunity lies in exploring the internationalization process enabled by digital platforms. Issues requiring exploration include assessing the applicability of traditional internationalization process theories, such as the Uppsala model (Johanson and Vahlne, 1977, 2009), and theories related to the international opportunity recognition process (Chandra, 2017). Both static and dynamic aspects of the process require further research. For instance, do the requirements for successful internationalization evolve throughout the process (as suggested by Da Fonseca et al., 2023)? Do SMEs need to acquire different types of tacit knowledge as internationalization progresses? Issues related to uncertainty and risk, opportunity recognition, and exploitation must be investigated within the context of internationalization enabled by digital platforms. The issues of learning and commitment to digital internationalization deserve more scholarly attention, given their foundational role in traditional internationalization process studies (Johanson and Vahlne, 1977). When applied to internationalization using digital platforms, the specific nature of these constructs requires clarification. For example, in analyzing commitment in this context, is it primarily a commitment to the platform, other platform members, digital internationalization, or internationalization itself? Uncertainty and risk have only been briefly touched upon in this literature (Jean et al., 2020; Qi et al., 2020); future studies should explore how SMEs perceive, respond to and manage uncertainty and risk throughout the process. Understanding the potential risk of SMEs becoming overly dependent on digital platforms is particularly pertinent. Process studies require longitudinal methods, yet few empirical studies in the current literature have adopted such approach. Incorporating longitudinal research designs would enhance the comprehension of the dynamics involved in the digital internationalization process.

Third, because digital platforms act as matchmakers (Song, 2019) connecting two or more parties, network theory and the ecosystems perspective provide robust theoretical foundations for understanding how relationships start, evolve, multiply, and eventually cease in these digital environments, and how value is co-created (Senyo et al., 2019). Furthermore, a comprehensive analysis of the relationship between SMEs and digital platforms, including their communication dynamics and the roles SMEs play as complementors, can shed light on the evolving dynamics of this interaction. The examination of buyer-seller interactions in digital environments is particularly relevant. In addition to case studies, other qualitative methods such as netnographies involving buyer-seller dyads engaged in specific international digital transactions could capture different facets of the phenomenon. Moreover, experiments hold potential for generating novel insights into buyer-seller relationships and consumer responses within digital environments. For instance, negotiation experiments conducted in a digital setting may reveal how negotiation practices differ from those in physical interactions. Conducting such experiments across different cultures can allow to test whether negotiation practices are standardized in the digital realm or if cultural differences persist.

Fourth, strategic issues, particularly those related to hybrid internationalization (physical and digital), remain under-researched. While the literature offers insights into whether a digital internationalization strategy requires a local presence in foreign markets (Hultman et al., 2023; Jin and Hurd, 2018; Tobiassen and Pettersen, 2023), a more comprehensive understanding is needed to determine the conditions under which a hybrid internationalization strategy becomes essential. Digital platforms may also impact SMEs’ international strategies by enabling them to maintain a presence in foreign markets even after physically withdrawing. Aspects such as the scope, speed, and intensity of internationalization enabled by digital platforms compared to other forms of digital internationalization also deserve researchers’ attention. These research themes allow using quantitative (surveys and panel data) and qualitative methods (case studies).

Fifth, while some studies have explored the outcomes and implications of SMEs’ adoption of digital platforms, focusing on post-adoption performance, benefits accrued, and impacts on global competitive positioning, there are other ramifications worth considering. For instance, researchers have yet to determine the extent to which digital platform use influences how SMEs perceive and face liabilities of smallness, foreignness, emergingness, and outsidership (e.g. Arenius et al., 2005; Hurmelinna-Laukkanen et al., 2020; Nambisan et al., 2019), as well as its role in building legitimacy in foreign markets. A related issue concerns validating other benefits suggested in the literature as outcomes of the internationalization process. Moreover, there is limited research on the reasons behind SMEs' failures in their international endeavors (Lee et al., 2020). Addressing issues related to de-internationalization and re-internationalization using digital platforms, akin to Yu et al.’s (2022) study on how digital transformation impacts Chinese firms’ re-internationalization, is crucial. Again, longitudinal methods could shed light on the non-linear internationalization processes often observed in SMEs, including episodes of de- and re-internationalization.

Finally, it is worth noting that research on this topic is significantly skewed towards Europe, with a prevalence of studies from Northern and Southern Europe, and China. Therefore, there is a need for more studies encompassing the Americas, including the U.S., other Asian countries, and Africa. Research focusing on emerging market could provide insights into how SMEs leverage digital platforms to overcome institutional voids.

Research on the impact of digital platforms on SME internationalization is still in its early stages, as is the research on the interplay between digitalization and internationalization. This gap led Katsikeas et al. (2019, p. 3) to assert that “academic research has been left behind practice development,” which remains pertinent five years later in a rapidly evolving environment. To contribute to advancing research on digital internationalization, this paper assesses the role of digital platforms in SME internationalization. Given that most digital platforms are not bound by location, they offer wide geographic reach, allowing SMEs to connect with customers across various countries. While beneficial for firms of all sizes (Nambisan et al., 2019), this feature is particular advantageous for smaller firms striving to overcome resource scarcity and the liabilities of newness, smallness, foreignness, and outsidership. Furthermore, digital platforms have the potential to significantly reduce the costs of doing business abroad. Therefore, their impact on SME internationalization warrants more scholarly attention.

This paper makes significant contributions to the international marketing literature. First, it provides a comprehensive overview of existing research, analyzing the theoretical perspectives, methods, contexts, and empirical findings related to the studies on SME internationalization enabled by digital platforms, thereby mapping the scholarly progress in this area. Second, it presents an integrated framework based on the study’s outcomes. Third, it identifies and explores future research avenues, addressing overlooked micro-, meso-, and macro-level factors and reflecting on theoretical, geographical, and methodological aspects that could enhance our understanding of the phenomenon. Additionally, the study provides practical insights for policymakers by highlighting a broad spectrum of internal and external antecedents that can either facilitate or hinder the internationalization of SMEs using digital platforms. This comprehensive view helps in understanding the conditions under which digital platforms can most effectively support the internationalization of smaller firms.

This study is funded by the National Council for Scientific and Technological Development (CnPQ) (Conselho Nacional de Desenvolvimento Científico e Tecnológico) and Carlos Chagas Filho Research Support Foundation (FAPERJ) (Fundação Carlos Chagas Filho de Amparo à Pesquisa do Estado do Rio de Janeiro).

Table A1