Digital transformation and the internationalization of small and medium-sized firms

Purpose. We propose a reflection on the role of technologies in the internationalization process of small and medium-sized enterprises (SMEs). Design/methodology/approach. Through a narrative literature review, we comprehensively synthesize the current state of the art of literature, including academic and non-academic findings.   Findings. The study’s outcomes confirm the role of digital technologies (DTs) as tools to support SMEs’ business processes and, more specifically, their internationalization process. We propose a summary of the main impacts of adopting DTs and the related barriers that SMEs may face along the process. Practical and Social implications. Many companies have recently had to change how they do business to respond to the new market needs and to everything that the new realities have brought, such as the shortage of raw materials or the significantly increased cost of logistics and transport. At the same time, however, these external forces have boosted processes and trends such as digital transformation. Such a process can help, for example, to reach foreign markets or to create international partnerships and collaborations; however, its impact varies depending on the size, sectors, and countries in which businesses operate. Understanding both the impact and the barriers they may face while engaging in the digital transformation process is of high importance not solely for the successful implementation of these DTs but also for the survival of the firm itself. Originality of the study. Most academic literature seems to focus mainly on the determinants of DTs’ adoption. Nevertheless, there is an increasing interest in investigating their role in SMEs’ international growth process. Thus, we highlight how these DTs could actively help SMEs’ survival and success. Keywords. SMEs; internationalization; digital technologies.