Digital Transformation and the internationalization of SMEs: insights from the Algerian context
DOI:
https://doi.org/10.34115/basrv10n1-003Keywords:
digital transformation, SME internationalization, Algeria, PLS-SEM, digital capabilities, emerging marketsAbstract
This paper investigates the impact of digital transformation on the internationalization performance of small and medium enterprises (SMEs) in Algeria. Using a quantitative research approach, we examined 39 Algerian SMEs across various sectors to understand how digital capabilities influence their international market entry and performance. The research employs the Digital Transformation Assessment Framework (DTAF) to measure digital maturity levels and uses Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the relationships between digital transformation dimensions and internationalization outcomes. Our findings reveal that digital infrastructure, digital skills, and digital strategy significantly impact SME internationalization success. The study identifies a substantial digital transformation gap between internationally active SMEs and those operating solely in domestic markets. Results indicate that SMEs with higher digital maturity scores demonstrate superior international performance, suggesting that digital transformation serves as a critical enabler for SME internationalization in developing economies. The research contributes to the growing literature on digital transformation and international business by providing empirical evidence from the Algerian context and offers practical recommendations for policymakers and SME managers seeking to enhance international competitiveness through digital initiatives.
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