NATIONAL UNIVERSITY HO CHI MINH CITY

UNIVERSITY OF ECONOMICS AND LAW

SCIENTIFIC RESEARCH

SMEs INTERNATIONALIZATION VIA DIGITAL

TECHNOLOGY AND PRODUCT INNOVATION: LEADERSHIP
AS A CORE DRIVER

Instructor: Ph.D Luu Tien Dung

Students:

No. Name ID Student

1 Vũ Ngọc Minh Thư K214020184

2 Đặng Phúc Loan Thảo K214020182

3 Lê Thị Thùy Trang K214021504

TABLE OF CONTENTS

ACKNOWLEDGEMENT 4
LIST OF TABLES: 5
LIST OF FIGURES 5
LIST OF ABBREVIATIONS 5
CHAPTER 1: INTRODUCTION 7
1.1 Research backgrounds 7
1.1.1 Research context 7
1.1.2. Explain the variable selection mechanism of the research 8
1.2 Research objectives and research scopes 10
1.3 Organisation of the report 10
CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 12
2.1 Terminology and key concepts 12
2.1.1 SMEs 12
2.1.2 Internationalization 12
2.1.3 Product Innovation 13
2.1.4 Digital Technology 14
2.1.5 Leader attributes 15
2.2 Theoretical foundations 16
2.2.1 Uppsala model 16
2.2.2 Upper echelons theory 17
2.2.3 Resource-based view theory 19
2.3 Conceptual framework and hypothesis development 20
2.3.1 Leader attributes and SMEs Internationalization 20
2.3.2 Leader attributes and SMEs Internationalization: The mediating role of Digital Technology 24
2.3.3 Leader attributes and SMEs Internationalization: The mediating role of Product Innovation 29
CHAPTER 3: RESEARCH METHODOLOGY 32
3.1 Research design, data collection 32
3.2 PLS-SEM 34
CHAPTER 4: RESULTS 34
4.1 Descriptives 34
4.2 Hypothesis testing 41
CHAPTER 5: DISCUSSION 44
5.1 Main findings 44
5.2 Theoretical contributions 46
5.3 Practical implications 46
CHAPTER 6: CONCLUSIONS, LIMITATIONS AND DIRECTION FOR FUTURE RESEARCHES 47
6.1 Conclusion 47
6.2 Limitations and directions for future researches 49
REFERENCES 50
ACKNOWLEDGEMENT

We would like to thank all authors, researchers, anonymous and directly participating reviewers
from 2005 to 2023 for their valuable researches' results, comments and feedback.

ABSTRACT

We examine the impact of leadership on the internationalization process of Small and Medium-sized
Enterprises (SMEs). Based on the upper echelons and resource-based view, we argue that leadership
plays an important role in the internationalization process of SMEs. We analyze keywords and
synthesize them into a framework that conceptually maps key antecedents, mediators that influence the
internationalization of SMEs by using a panel dataset of 209 SMEs (from 2005-2023) that have
expanded abroad. The Partial Least Squares structural equation modeling (PLS-SEM) approach was
adopted to analyze the questionnaire data. We find that leadership attributes have a positive impact on
the success of SMEs in internationalization. We believe that the internationalization process of SMEs,
which is the process involving adapting a company's operations, is also influenced by digital technology
and product innovation. By measuring the impact of leadership, this research helps identify the most
important leadership attributes that drive this process. Furthermore, we find that Digital Technology is
considered as a mediating variable that positively influences SMEs internationalization. Conversely,
Product Innovation can negatively affect the internationalization path of SMEs in some ways.
LIST OF TABLES:

Table 1: Description of model variables.

Table 2: Outer loadings - Matrix

Table 3: Construct Reliability and Validity - Overview

Table 4: Discriminant Validity - Fornell-Larcker criterion

Table 5: Path coefficients - Means, STDEV, T values, p values

Table 6: Path coefficients - P value of direct relationship between independent and dependent variables

Table 7: Specific indirect effects - P values

LIST OF FIGURES

Figure 1. Depicts the analytical, conceptual framework of the study.

Figure 2. The results of our model with tested variables after running the PLS-SEM Bootstrapping

LIST OF ABBREVIATIONS

SMEs: Small and Medium-sized Enterprises

PLS-SEM: The Partial Least Squares structural equation modeling

DT: Digital Technology

CEO: Chief Executive Officer

TMT: Top Management Team

EU: European Union

R&D: research & development

IT: Information Technology

MNEs: Multinational Enterprises

HTMT: Heterotrait–monotrait ratio

TMI: Top management innovativeness

CHAPTER 1: INTRODUCTION
1.1 Research backgrounds

1.1.1 Research context

In the current context, SMEs are increasingly recognizing the importance of internationalization to
maintain growth and competitiveness. The expansion into international markets and the use of foreign
resources by SMEs have increased significantly "In today's interconnected global economy,
internationalization has become imperative for businesses aiming for sustainable growth and
competitiveness (Ramirez-Aleson et al., 2022). Especially in 2023, the internationalization of SMEs
through digital technology and product innovation becomes an undeniable trend (Masi and Napolitano,
2020, Rialp et al., 2021). The business landscape this year poses many new challenges as the impact of
the COVID-19 pandemic lingers and changes the way businesses operate globally. In this context,
internationalization becomes an indispensable part of the development strategy of SMEs (Buckley and
Casson, 2022), and digital technology and product innovation play an important role in promoting this
internationalization. (Li et al. 2020, Khan et al., 2021, Buckley and Casson, 2022).

Digital technology has proven itself as a powerful tool to improve performance, optimize manufacturing
processes and create high-value products and services. In 2023, SMEs have had to accept change and
digital transformation to strengthen their competitive power, “Digital transformation is of great
significance for SMEs to enable them to better respond to the pandemic, to ensure continuity of work
and production and of course enhance their future competitiveness” (Gutola Bokayo Roba, Mrva Milos:
Digital Transformation of SMEs During the COVID-19 Pandemic, 2023). At the same time, product
innovation plays an important role in helping these businesses develop new products and services that
suit market needs and respond to consumer changes (Jensen and Pedersen, 2021).

In all these factors, the role of leadership becomes extremely important. Leaders are not only those who
shape strategy but also those who create the motivation and environment to promote innovation and
progress (Brown and Anthony, 2022). In 2023, leaders must be able to look ahead, make strategic
decisions and create the necessary encouragement for employees to accept and participate in digital
transformation and product innovation. The importance of internationalizing SMEs through digital
technology and product innovation is not only an opportunity to open new markets but also a decisive
factor for their survival and development in the future a competitive and changing business environment
(Garcia et al.,2022). Leadership plays a pivotal role in driving this process, from shaping strategy to
creating an exciting and creative work environment that drives continuous innovation. Overall, 2023
marks an important period in the internationalization of SMEs through digital technology and product
innovation. And in this journey, the role of leadership is undeniable and becomes the core driving force
that pushes businesses to overcome challenges and develop sustainably in the future.

1.1.2. Explain the variable selection mechanism of the research

The question that needs to be clarified in the current context is how leader attributes will influence the
internationalization process of SMEs through digital technology and product innovation.

Although research on the internationalization of SMEs has made significant advances in recent years,
notable gaps remain in understanding the mechanisms behind this complex process. One area that
warrants further investigation is the selection and testing of independent variables, especially leadership
attributes, digital technology adoption, and product innovation, as mediating factors for SMEs
internationalization. First, although the importance of leadership attributes in guiding SMEs
internationalization efforts is widely recognized, there is a lack of comprehensive research on the
specific leadership attributes and behaviors that influence how it affects the adoption and use of digital
technology and product innovation in SMEs (Jones et al., 2021). Existing research often focuses on
general characteristics of leadership without delving into the nuances of how leaders facilitate or hinder
the integration of digital tools and innovation strategies into internationalization initiatives. Second,
although the role of digital technology and product innovation as drivers of SME internationalization has
received attention, understanding of their mediating effects in the internationalization process remains a
limited mechanism (Garcia et al., 2022). While it is acknowledged that digitalization and innovation can
enhance the competitiveness and market access of SMEs, the specific mechanisms through which these
factors facilitate Favorable conditions for international expansion have not yet been thoroughly
researched. Further research is needed to elucidate how digital technology and innovative products
mediate the relationship between leadership characteristics and internationalization outcomes in SMEs.
Furthermore, the interaction between leadership attributes, digital technology adoption, and product
innovation as mediators of the internationalization process represents a significant gap in theory.
Although each of these factors has been examined independently, little is known about their combined
impact on SMEs' internationalization strategies and performance. Understanding how leadership
influences the adoption and deployment of digital technology and innovation and how these factors
drive overall internationalization is essential for developing comprehensive frameworks and strategies to
support the global growth efforts of SMEs. In summary, there is a clear need for further research to
address the gaps in understanding the selection mechanisms of independent variables such as leadership
characteristics; digital technology adoption, and product innovation as mediating roles in the
internationalization process in SMEs. By examining the interactions between these factors and their joint
impact on internationalization outcomes, researchers can provide valuable insights to policymakers and
SMEs looking to navigate the complexities of global markets effectively.

This study investigates the influence of leader attributes on SME internationalization, considering digital
technology and product innovation as mediating factors. Leadership is hypothesized to be a core driver,
influencing a firm's strategic direction and risk-taking ability for international expansion. Digital
technology and product innovation are then positioned as intermediaries. These mediate the impact of
leadership on internationalization by facilitating capabilities that support venturing into new markets.
For example, strong leadership can prioritize investments in digital marketing tools (digital technology)
to reach global audiences. Similarly, leadership can support product development (product innovation)
efforts to create products with international appeal. By examining these mediating factors, the study
aims to shed light on the specific mechanisms through which leadership characteristics translate into
successful SME internationalization. In the context of internationalization of SMEs, the choice of
leadership attributes serves as an independent variable with digital technology and product innovation as
mediators, while internationalization plays a role as the dependent variable, emphasizing the important
role of leadership in driving organizational strategies and results. Leadership attributes such as gender,
domestic and international experience, knowledge and educational level are foundational factors that
guide the internationalization efforts of SMEs (Johnson et al. 2022, Garcia et al. 2022). Digital
technology and product innovation play a mediating role in the relationship between leadership
characteristics and internationalization outcomes of SMEs. Leadership attributes influence the adoption
and use of digital technologies and innovation processes in SMEs, promoting dynamic organizational
environments conducive to internationalization. Digital technology helps SMEs overcome geographical
barriers, expand market reach and improve operational efficiency, while innovating products that make a
difference, creating value and competitive positioning in the international market. Finally, the
mechanism selects independent variables with leadership attributes, digital technology and product
innovation as mediators and internationalization as dependent variables in the study of
internationalization of medium and large enterprises. small reflects the indispensable role of leadership
in driving the organizational change and innovation needed for successful global expansion. Through
effective leadership, SMEs can navigate the complexities of international markets, leverage digital
technology and innovation, and achieve sustainable growth and competitiveness in an increasingly
connected global economy.

1.2 Research objectives and research scopes

This paper examines the impact of leadership on the internationalization process of SMEs. Based on the
upper echelons and resource-based view, we argue that leadership plays an important role in the
internationalization process of SMEs. We analyze keywords and synthesize them into a framework that
conceptually maps key antecedents, mediators that influence the internationalization of SMEs by using a
panel dataset of 209 SMEs (from 2005-2023) that have expanded abroad.

1.3 Organisation of the report

This study is structured into six chapters, encompassing the theoretical underpinnings, research
framework, methodology, results, and concluding remarks. Chapter 1 establishes the foundational
terminology and key concepts relevant to the research. This includes defining SMEs internationalization,
product innovation, and digital technology. Chapter 2 delves into the theoretical framework, drawing
upon established models such as the Uppsala Model, Upper Echelons Model, and Resource-Based View.
These models will be explored through the lens of relevant academic research to provide a robust
theoretical foundation for the study. It focuses on the development of the conceptual framework and
formulation of hypotheses. This section will comprise three key propositions that elucidate the
relationships between the independent variables (leadership) and the dependent variable (SME
internationalization). Insights from scholarly literature will be employed to demonstrate the independent
role of leadership, the mediating role of digital technology in the context of SME digitization and
internationalization, and the moderating effect of product innovation on these relationships. Chapter 3
outlines the research methodology employed in the study. This section will detail the research design,
data collection methods, data analysis techniques and showing PLS-SEM of the research . The key
findings and significant results will be presented and discussed thoroughly in this section. Chapter 4
encompasses the result of the research, which includes descriptives and hypothesis testing. Next chapter
is chapter 5 which focuses on discussing the study's findings, the key insights, theoretical contributions,
and practical implications for SMEs seeking internationalization will be identified and elaborated upon.
And the 6th chapter is the conclusion of the research, our shortcomings and showing directions for
future research.
CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
2.1 Terminology and key concepts

2.1.1 SMEs

As Zahoor, Al-Tabbaa, Khan and Wood (2020) indicate, the definitions of Small and Medium
Enterprises (SMEs) vary globally, primarily based on either the number of employees, revenues, or both.
SMEs differ among nations in terms of size, sectoral dispersion, and national weight. While employee
count is commonly used, thresholds differ between regions. For example, in the UK and the EU, a SME
usually employs less than 250 people and has an annual turnover of no more than 50 million euros. The
maximum number of employees in the US is 500, whereas in China, it goes up to 2000. Based on
employee size, the EU further divides SMEs into three categories: micro (less than 10), small (10–49),
and medium (50–250). The National Center for the Middle Market in the US classifies mid-sized
businesses into three groupings based on their revenues, which range from $10 million to $1 billion. The
US Small Business Administration (SBA) has a complex definition spanning around seventy pages,
primarily to accommodate industry differences, highlighting contextual variations. Thus, a firm
generating $900 million in revenue might be considered mid-sized in the US but categorized as large in
smaller nations internationally.

2.1.2 Internationalization

The internationalization of SMEs has been defined as ‘the discovery, enactment, evaluation, and
exploitation of opportunities— across national borders—to create future goods and services’ (Oviatt and
McDougall 2005, p. 538). It is a complex adaptive and dynamic system incorporating multiple levels of
interaction between the entrepreneur, firm, market, and environment (Etemad 2004). Internationalization
refers to the process of a company becoming more involved in worldwide operations as well as the
actions that companies take to gain access to overseas markets.

SME internationalization is a process that doesn't always proceed in a predetermined order. It can be
attained via a variety of actions that go outside the boundaries of the home economy, such as product
and R&D exports, foreign affiliates, foreign production, and foreign direct investment. The recognition
of SMEs potential to engage in worldwide business has led to a sharp increase in interest in the
internationalization of SMEs during the past 20 years.
In contrast to MNEs, SMEs frequently have a "liability of smallness" that shows itself as a lack of
resources like finance and in-depth knowledge of international markets. In a rapidly evolving global
business environment, it is inevitable for economies to promote and support the participation of firms
from the country presence in global markets (Lindstrand & Hånell, 2017; Menzies et al., 2020). There
are several benefits to internationalization, including increased growth potential, new knowledge, access
to resources, and long-term profitability growth. As one of the trickiest and most difficult methods,
internationalization, especially for SMEs, offers a chance to pursue success and expansion in addition to
merely surviving. It may take some time for internationalization to yield noticeable results, but it also
entails high risks, expenses, and uncertainties as well as a significant resource commitment.

2.1.3 Product Innovation

Product innovation plays a crucial role in the internationalization strategies of companies seeking to
expand their market presence beyond domestic borders. By adapting products to suit the preferences,
cultural nuances, and regulatory requirements of diverse global markets, businesses can gain a
competitive edge and enhance their appeal to international consumers. This innovation often involves
redesigning existing products or developing entirely new ones to meet the unique needs of different
regions. For example, a technology company might modify its software to support multiple languages or
customize features to align with specific cultural norms. Similarly, a food and beverage company might
reformulate recipes to cater to local tastes or introduce packaging sizes that resonate with target
demographics in various countries. Moreover, companies may leverage advancements in technology,
such as artificial intelligence and data analytics, to anticipate market demands and personalize offerings
for international consumers.

Innovation has evolved from an individual or internal process within firms to an interactive process
between firms and/or in collaboration with knowledge-creating institutions at both domestic and global
levels since the beginning of the 21st century. Successful product innovation prompts SMEs to enter
export markets. Innovation capacity is a crucial resource for a company's market success, enabling it to
generate, adopt, and implement new ideas, processes, products, or services, and can also result from
learning interactions with organizational and environmental resources. Innovation is increasingly
recognized by managers and is incorporated into many firms' mission statements. Firms can enhance
their innovation capabilities through investments in research and development, as well as obtaining
knowledge from multiple stakeholders.
Top management innovativeness (TMI) is the degree to which a company's top managers have a positive
attitude towards innovation and are willing to invest in it. Researchers contend that managers'
contribution to firm innovation is restricted by the demanding nature of their work. The study suggests
that firm innovation performance is influenced by managers' demographic and cultural background, with
young, short-term, industry/marketing-experienced, and socially cultured managers being more likely to
promote innovation activities. The business's international innovation strategy involves boosting
consumer demand, taking risks in product testing, and being more innovative than competitors in
Emerging Markets. An innovative organizational climate can motivate employees to contribute to the
company, generate new ideas, and resist competition. Most SMEs lack the resources to offer
inducements, so they enter foreign markets through innovation, rapid product adaptation, or specialized
inputs to MNE global value chains, rather than relying on resources. Furthermore, CEOs with internal
control, personal initiative, participative work environments, and effective management of complex
product innovations are adept at managing international interdependence. Theories on top managers'
psychology, innovation, and change are lacking, with the importance of upper echelons theory not only
in the internationalization process but also in academic disciplines, with numerous studies elaborating on
its role. However, not all managers are inclined to bring about innovation and change or
internationalization. In the digital age, entrepreneurs need to be aware of opportunities to be ready for
sustainable innovations. Corporate EO refers to an organizational decision-making style that
demonstrates innovation, proactiveness, and risk-taking to explore and exploit opportunities,
outperforming competitors, and building a strong competitive advantage. At the firm level, persistent
effort is positively associated with perceived innovation success, and it has an indirect impact on firm
performance through innovation success, while calculating consistency of target benefits has a negative
impact on perceived innovation success. Micro multinationals can improve their industry understanding
across geographies, potentially leading to product innovation and foreign market penetration through
specific entry modes.

2.1.4 Digital Technology

Businesses are undergoing a digital revolution, with cutting-edge technologies transforming everything
from company culture to how they reach customers. Digital transformation (DT) offers exciting
opportunities, boosting agility, performance, and even opening doors to international markets. There are
two main approaches: strategic DT involves large-scale changes to business models and operations,
while commercial DT focuses on using specific digital tools to solve specific problems. The key to
success isn't just having access to technology, but integrating it effectively into the company's practices.

This digital transformation journey isn't without its challenges. Businesses need to prepare for cultural
shifts, invest in developing their workforce's digital skills, and make strategic investments in both basic
and advanced technologies. However, the potential rewards are significant. DT can empower businesses,
especially SMEs, to overcome resource limitations and compete on a global scale. It's an ongoing
process that requires continuous learning and adaptation. Companies that embrace DT and invest in both
technology and their leadership will be well-positioned to thrive in the ever-evolving digital landscape.

2.1.5 Leader attributes

Since Hambrick and Mason's (1984) influential work on the upper echelons perspective, a considerable
body of research has delved into examining how the attributes and composition of top management
teams (TMTs) influence strategy and performance (Escriba-Esteve et al., 2009). SMEs offer a more
straightforward context to empirically assess the effects of TMT attributes on firms' performance
compared to larger corporations. This is because SMEs often operate with constrained resources and
lack sophisticated administrative systems, relying more heavily on their managers for decision-making
processes (Escriba-Esteve et al., 2009; Patzelt et al., 2008). The predictions of the upper echelons
perspective stem from the notion that top executives make decisions and craft strategies amidst
conditions of ambiguity, complexity, and information overload. Consequently, in situations of greater
uncertainty in decision-making, the correlation between executive attributes and firm outcomes becomes
more pronounced (Hambrick, 2007). In the realm of SMEs, attributes of managerial teams are
considered predictors of export performance. Thus, this study aims to enrich our comprehension of how
managerial team attributes influence the inherently uncertain decision-making process of entering
foreign markets.

To gauge executives' influence on firm strategies and results, the upper echelons perspective advocates
using demographic variables as proxies for psychological constructs such as managerial cognitions,
perceptions, and values. Demographic attributes are easier to quantify and more reliable, while
psychological constructs are challenging to measure directly (Carpenter, 2002; Hambrick & Mason,
1984; Pitcher & Smith, 2001; Sambharya, 1996; Wiersema & Bantel, 1992). Studies considering mean
levels suggest that top executive attributes such as tenure (e.g., Tihanyi et al., 2000), age (e.g.,
Escriba-Esteve et al., 2009), educational attainment (e.g., Patzelt et al., 2008), and international
experience (e.g., Hermann & Datta, 2005) are linked with strategic decisions and outcomes.

The upper echelons perspective contends that greater diversity in demographic attributes signifies a
broader range of perspectives, knowledge, and network connections. This diversity fosters constructive,
task-oriented debates crucial for firm performance (Barkema & Shvyrkov, 2007; Carpenter &
Fredrickson, 2001; Hambrick et al., 1996).

2.2 Theoretical foundations

2.2.1 Uppsala model

Johanson and Vahlne (1977) originally developed the Uppsala model to explain a firm’s
internationalization process.

To emphasize the importance of the decision maker, we rely on one of the foundations of the Uppsala
model. Exaptation and adaptation work together to drive a company's growth and, ultimately, its
internationalization. We demonstrate how the idea of adaptation, which is frequently connected to
discontinuous and nonlinear internationalization, highlights the role that each individual plays in the
process of internationalization.

According to this theory, internationalization is a process consisting of four stages, the first stage is that
businesses operate in the domestic market and do not participate in export activities, the next stage,
businesses begin to interested in expanding cross-border business activities by exporting to countries
that are geographically close or have many similarities with the domestic market, in the third stage,
businesses often establish overseas sales branch, and further to build a production/manufacturing facility
abroad in the final stage. This theory also explains that through each stage, business activities
increasingly develop due to the gradual accumulation of knowledge and experience over time (Johanson
and Vahlne, 1977, 1990).

Besides, accumulated knowledge and experience also create incentives for businesses to maintain and
develop their export activities. For SMEs, Johansson and Vahlne (1977) believe that the decision to
choose an international market is based on the influence of external factors and the company's reactions
to the market opportunity.
2.2.2 Upper echelons theory

Following the article “Upper echelons and firm internationalization: A critical review and future
directions”, we can conduct the definition and roles of Upper echelons Theory. The essential role of
company leaders, such as the CEO and TMT members, who act in line with the impacts of their
personalities, experiences, attitudes, and values, is a fundamental tenet of upper echelons theory
(Hambrick, 2007; Hambrick & Mason, 1984). According to Cannella, Hambrick, Finkelstein, and
Cannella (2009), the TMT is a dominating coalition of firm members at the top of the company that
serves as the major strategic decision-maker and is typically based at the firm's headquarters.

Besides that, the article “The Role of Top Management Team Digitalization and Firm
Internationalization for Sustainable Business'', provides evidence that upper echelon characteristics bring
new competences and skills, including digital skills, which are essential for company
internationalization in the modern world of turmoil, crisis and uncertainty. Companies’ top management
have started to train in and adjust to practices related to digitalization and artificial intelligence. Due to
increasing customer demands, complex external market conditions, changing policies and regulations,
companies need to foster and prepare their upper echelons for taking risks and making high-impact
decisions in highly uncertain situations (Pogodina, Aleksakhina, Burenin, Polianova & Yunusov, 2019;
Petrenko, Vechkinzova, Antonov, 2019). Thus, senior management teams are promoting and
implementing hiring practices which require new top managers to possess digitalization and IT skills,
which help them when taking high levels of risks during strategic decision making (Bin Nasir & Sada,
2019; Vasilev, Gapsalamov, Akhmetshin, Bochkareva, Yumashev & Anisimova, 2020; Vallone, Elia,
Greve, Longoni & Marinelli, 2019). Based on the above mentioned information, the motivation for
writing this paper comes from the fact that the authors team has previously researched the TMT of
international companies from the perspective of diversity and data governance (Laužikas & Miliute,
2023; Adeniran, Hamid & Noor, 2020). The paper contributes to the upper echelon theory and practice
in the domain of top management teams. The TMT’s theory argues that the firm’s strategic
decisions—and subsequent results—are reflections of the features of its senior management, and
particularly its upper echelon structures (Chehabeddine & Tvaronaviˇcien˙e, 2020; Kjellstrand & Samar,
2017). The study refers to the upper echelon theory by emphasizing the critical importance of TMT
characteristics, such as an international experience, digital awareness, educational background and
company tenure, which eventually could increase the level of TMT digitalization. In the turbulent and
highly uncertain business world, companies try to promote and implement digitization not only in their
business operations, but also in their upper echelons by actively adopting the best practices in terms of
digital transformation, supported by the top management team (Becker, Schmid & Botzkowski, 2018).
Even though the majority of the selected EU companies are operating regionally and internationally,
only a few of them have on board a Chief Strategy Officer, Chief Digitization Officer or Chief
Information Officer. However, the questioned top managers pointed out the necessity of having at least
one of these three executive positions, as their companies need to increase upper echelon awareness of
digitalization and general data protection regulations (De Leeuw, Hox & Dillman, 2008). Moreover, the
questioned senior managers believe that higher digitalization skills among the top management teams
could bring higher company performance (Neubert, 2020). However, digitalization skills are not only
linked to IT skills, but they include soft and interpersonal communication skills, which are needed for all
managers to deal with the constant changes as well (Wunderlich & Beck, 2017). Based on the upper
echelon theory, the top managers possess competencies and skills, which can foster the board leadership
and digital transformation of the companies. This study contributes to the theory of top management
teams as it provides evidence that TMT members possess, and should be aware of digitalization skills
and competences as key capabilities needed for each senior manager nowadays. There is a relationship
between senior managers IT and digital skills and firm internationalization, thanks to the fact that more
“digital” top managers would promote more remote work among the employees and they would reach
more customers abroad, which would make their firms known, and more familiar to remote customers,
suppliers and business partners. Additionally, it would boost the long-term firm sustainability in terms of
economic and social aspects. Last but not least, international companies and particularly their TMT
members should pay significant attention to the digitalization of the board as it could have an imminent
impact on strategic firm decisions and firm policies related to internal and external business processes.
2.2.3 Resource-based view theory

The resource-based view (RBV) is a model that sees resources as key to superior firm performance. If a
resource exhibits VRIO (Variable Rare Inimitable Organized) attributes, the resource enables the firm to
gain and sustain a competitive advantage (Rothaermel, F. T. (2012). Strat.Mgmt.: Concepts and Cases.
McGraw-Hill/Irwin, p. 5). The RBV theory flips the script on traditional strategic management by
focusing inward. It argues that a firm's competitive advantage stems not just from external factors, but
from the unique set of resources and capabilities it possesses. These resources can be tangible assets like
machinery or intangible assets like brand reputation and employee knowledge. The RBV emphasizes
four key characteristics: value, rarity, imitability, and organizational capabilities. Valuable resources
contribute to a firm's strategic goals, while rare resources are uncommon and difficult for competitors to
acquire. Imitability refers to how easily competitors can replicate a resource, with complex or
proprietary resources offering a stronger advantage. In other words, The RBV theory is a theoretical
framework that examines how international SMEs use their resources and management skills to gain and
maintain a competitive advantage, focusing on how managers' dynamic capabilities contribute to
resource identification and integration.

RBV is primarily utilized in developed countries where market saturation and demand for low-cost
manufacturing environments are driving factors. Research in RBV highlights the importance of
intangible resources, such as management resources, knowledge, and innovation, in SMEs' operations.
The RBV acts as a roadmap for SMEs navigating the complexities of internationalization. By analyzing
their unique bundle of resources through the RBV lens, SMEs can identify the keys to unlocking success
in foreign markets. Beyond the resources themselves, RBV stresses the importance of organizational
capabilities. This refers to the skill of transforming these resources into winning strategies. Efficient
logistics, strong marketing, and international business development expertise are all crucial for SMEs to
thrive abroad. Franchising utilizes a resource-based approach to develop and execute strategic strategies
that enhance success by leveraging their unique resources. The dynamic capability perspective, a
resource-based theory, suggests that firms must integrate their existing capabilities with their ability to
acquire and develop new information and skills. RBV is utilized to comprehend the degree of
competitive advantage achieved in business ventures and strategies for sustaining this advantage.
2.3 Conceptual framework and hypothesis development

2.3.1 Leader attributes and SMEs Internationalization

Because of the various levels of complexity that come with internationalization, businesses need to be
highly capable of processing information, addressing problems, and possessing a variety of skills and
knowledge. The extent to which a firm can rely on such capabilities depends on the people who are in
charge of the firm’s decisions and shape the internationalization process, i.e. the TMT. Much of the
existing literature has arguably underrated the role of the TMT’s leadership in the internationalization
analysis (Aharoni, Tihanyi and Connelly, 2011; Hennart, 2007; Maitland and Sammartino, 2015).
Hence, in the next paragraphs, we discuss how different leader attributes and thus enable companies to
have success in internationalization.

The leadership is flexible, depending on the environment, the circumstances, especially the demographic
characteristics of TMT, we view it as a tool for innovation and adaptation in unpredictable and chaotic
times. The two primary purposes of leadership are to convey a vision and involve followers and other
stakeholders in realizing it. The relationship between TMT composition and firm outcomes is the main
emphasis of the upper echelons approach. The main thesis is that senior managers select corporate
strategies and impact firm results by selecting particular strategies. The TMT bears the final
responsibility for the challenges and issues brought forth by internationalization. Therefore, to
understand what happens to a firm, one should examine the characteristics of its top executives
(Carpenter et al. 2004; Finkelstein and Hambrick 1996; Hambrick 1989, 2007; Hambrick and Mason
1984).

The upper echelons viewpoint promotes the use of demographic factors as proxy for psychological
constructs, such as managerial cognitions, views, and values, in order to evaluate executives' impact on
business strategies and outcomes. Demographic attributes are easy to measure and highly reliable,
whereas psychological constructs are not subject to direct measurement and are difficult to discern
(Carpenter 2002; Hambrick and Mason 1984; Pitcher and Smith 2001; Sambharya 1996; Wiersema and
Bantel 1992). TMT leadership is related to demographic attributes, such as gender, experience,
education, etc. Diversity of perspectives, knowledge, and network relationships, in turn, promote
constructive, task-related debate essential to the firm's performance. Therefore, scholarly research
indicates that cognitive variety, as evidenced by demographic heterogeneity, has a good correlation with
business performance. But the literature on team diversity that looks at the demographic diversity of
teams generally implies that heterogeneity across demographic categories can also be negative (Greer et
al. 2008; Harrison et al. 2002; Simons et al. 1999; Smith et al. 1994).

A key finding of research on team diversity is that diversity related to demographic attributes can be a
double-edged sword, and it can be associated with positive outcomes as well as negative (Milliken and
Martins 1996). From the supervisor's point of view, TMT demographic characteristics were taken into
consideration most frequently. Numerous studies focusing on the top echelons point to a connection
between business strategy and performance and composition factors such as gender, education level, and
experience gained both domestically and abroad. However, the results of these prior studies are
inconclusive (Carpenter et al. 2004). Therefore, the following section will continue to examine the
relationship between leader attributes and internationalization performance of SMEs.

The significant role of international managers and entrepreneurs is being as the central decision-maker
in opposition to the larger multinational firms, in which the management team has the power of
decision-making (Bhuian et al., 2005). International SMEs frequently have a founder, owner, or
management who is willing to take the lead and make the decisions for internationalization.

Gender

One crucial attribute that can impact the ability to digest information and make decisions is gender.
Although it is a relatively new phenomena for female managers to have positions within TMT (Krishnan
and Park, 2005), in recent years, there has been an increasing interest in determining the impact of
women in the process of making strategic decisions. Gender diversity contributes to a more creative,
proactive, cautious, and proactive way of thinking (Bass and Avolio, 1994; Huang and Kisgen, 2013).
This improves decision-making quality and increases environmental scanning, which may lead to a
higher level of internationalization.

H1a: There is a positive relationship between gender diversity and SMEs internationalization.

Knowledge and international experience

Knowledge gained from the international entrepreneur's past experiences is also vital to the venture's
ability to secure resources for internationalization (Reuber & Fischer, 1997; Rezaei et al., 2020). It has
been discovered that the ownership of previous enterprises is associated with two types of worldwide
experience. They take into account collaboration with previous start-up expertise and prior experience
running an entrepreneurial business (Busenitz et al., 2003). Prior research indicates that TMTs with
global experience give the MNE access to additional knowledge and expertise about managing global
operations and taking advantage of global opportunities (Đerđa, 2017). Businesses can reduce
transactional risks in foreign markets by having knowledge about those markets, including information
about possible suppliers, customers, and partners. Conversely, entrance strategies with larger equity
stakes may seem more alluring for businesses whose TMTs have greater international experience. As
Herrmann and Datta (2006) indicate, if firm CEOs have more international experience, they are more
likely to choose higher equity entry modes, such as cross border acquisitions or greenfield rather than
joint ventures. Additionally, TMTs with greater global experience possess a broader knowledge base that
enables them to assess and explore a greater variety of foreign market entry strategies and locations.
TMT members require less cognitive work to make decisions about internationalization since they have
expertise in foreign markets, which increases their cognitive tolerance for foreignness (Clark, Li, &
Shepherd, 2018; Pisani, Muller, and Bogatan, 2018). In addition to lowering uncertainty, the unofficial
information networks they create in overseas markets serve as a stand-in for the acquisition of cultural
knowledge. International success is therefore positively impacted by the TMT's global experience,
especially that of the CEO (e.g., Magnusson & Boggs, 2006; Sambharya, 1996; Tihanyi et al., 2000).

H1b: There is a positive relationship between leader experience and SMEs internationalization.

Education background

According to Tihanyi et al. (2000), receiving an elite education broadens the cognitive range of TMT
members and gives them more chances to socialize with other elites. They could therefore become more
accepting of different cultures and come to see globalization positively. Their capacity to manage the
challenges of internationalization is also enhanced by education (Ahmed & Brennan, 2019; Herrmann &
Datta, 2005; Wally & Becerra, 2001). The business is more flexible and better able to handle uncertainty
when the TMTs have more diverse educational backgrounds; these firms exhibit a higher level of
internationalization (Carpenter & Fredrickson, 2001; Lee & Park, 2006; Tihanyi et al., 2000). Increased
education also correlates with improved information processing, boundary-spanning, ambiguity
tolerance, and integration of many information sources. Therefore, firms led by well-educated TMTs are
better placed to undertake riskier international entry-modes; both CEOs and entrepreneurs with more
education prefer internationalization with higher-order equity modes (Herrmann & Datta, 2002).
Mozas-Moral, Moral-Pajares, Medina-Viruel, and Bernal-Jurado (2016) find that a manager’s capacity,
measured in terms of relevant education, positively moderates the relationship between the firm’s new
product development capabilities and its export intensity.

Two significant facets of CEOs' educational backgrounds that have been linked to a firm's worldwide
activity are their level of education and their involvement in international studies. The executive team's
knowledge and abilities are formally measured by the TMT level of education. Education equips
managers with advanced problem-solving techniques, knowledge, and ability to handle challenging
circumstances. It has been shown that managers with advanced degrees will foster an environment in
which innovation and adaptability are valued at higher levels within the company. Indeed, higher
education levels enhance TMT’s ability in processing information arising from the internationalization
process and, at least partially, prepare the top managers to deal with the uncertainties and complexities
of the foreign expansion (Ganotakis and Love, 2012; Kirca et al., 2012). Because executives are more
aware of and receptive to new opportunities in foreign markets, have a higher tolerance for uncertainty,
and acquire knowledge and skills that increase their information processing capacity, we expect that
TMT educational backgrounds, such as high educational levels and a high proportion of executives with
experience studying abroad, will result in a higher internationalization complexity.

H1c: There is a positive relationship between the leader's educational background and SMEs
internationalization.

Through the above analysis, the attributes of TMT including gender, education, knowledge and
experience, etc. contribute to forming the TMT's leadership ability which directly affects the
internationalization success of SMEs.
2.3.2 Leader attributes and SMEs Internationalization: The mediating role of Digital
Technology

Globally, the emergence of digital technology is drastically altering the paradigms of economies, society,
and businesses, as well as the increasingly interconnected nature of international trade. Traditional
theories of corporate internationalization do not directly address the widespread effects of digital
technology, despite the fact that there are many chances to be established.

We have found old articles and seen that other authors have the same idea of mediating roles of Digital
Technology between Leadership and SMEs Internationalization. The research “SMEs’
Internationalizations: Mapping the Field through Finance, ITC, and Social Ties” improves their
knowledge to extend the knowledge through the lens of the RBV theory. While looking at the
importance of IT Capabilities, Adomako et al. (Adomako, Amankwah-Amoah & Danquah, 2022)
assessed the mediating role of technological capabilities in the relationship between R&D support,
technological turbulence and the internationalization of SMEs. Caputo et al. (Caputo, Fiano, Riso,
Romano & Maalaoui, 2022) stated that digital platforms are an important indicator of international
performance in SMEs. Other researchers, such as Reim et al. (Reim, Yli-Viitala, Arrasvuori & Parida,
2022) and Yu et al. (Yu, Fletcher & Buck, 2022) described the importance of digitalization and business
models in SMEs’ internationalization. Lee et al. (Lee, Yang, Ghauri & Park, 2022) described the
importance of social media and digital platforms in the internationalization of SMEs. In a recent study,
Anwar et al. (Anwar, Scheffler & Clauss, 2022) revealed that digital capabilities assist SMEs in
innovating their business model for the internationalization process. In the era of COVID-19,
digitalization works as helping hands for SMEs in innovating and digitizing their models for
international markets. In the era of digital economy, digitalization has the potential to expedite the
internationalization process of businesses (Feliciano-Cestero, Ameen, Kotabe, Paul & Signoret, 2023).

Additionally, scholars have also shed light on the role of network ties in the internationalization of
SMEs. For example, Singh et al. (Singh, Chandrashekar, Hillemane, Sukumar & Jafari-Sadeghi, 2022)
demonstrated how social networking can improve the internationalization process and economic
performance of SMEs. Similarly, Leppäaho et al. (Leppäaho, Jack &Plakoyiannaki, 2022) discussed the
role of networking in the early and post entry phases of internationalization. A recent study by Ong et al.
(Ong, Freeman, Goxe, Guercini & Cooper, 2022) found a positive association between networking and
the internationalization of SMEs. Bai et al. (Bai, Johanson, Oliveira, Ratajczak-Mrozek & Francioni,
2022) stated that building networks with outside partners is important for the internationalization
process in business industries. Their research also revealed that networking has been a significant
predictor of SMEs’ internationalization over the past 2 decades.

Information Technology (IT) Capabilities are very important for boosting entrepreneurial activities in
SMEs. IT makes it easy for SMEs to exploit international opportunities. Moreover, they could also build
networks with external partners and organizations. They suggest scholars research how certain internal
and external resources and capabilities improve the relationship between IT Capabilities and
international entrepreneurship. As noted earlier, scholars and researchers from emerging and Asian
economies are highly encouraged to expand the field. In terms of IT Capabilities, their findings show
that human capital and innovative tactics are the most recent factors of internationalization. Hence, small
businesses should emphasize competent digital employees and managers to attenuate the barriers in the
way of internationalization. Furthermore, small businesses should use affectation and resources (tangible
and intangible) to accelerate their international entry. In summarized findings, we can say IT and
networking play a very important role in the internationalization of SMEs. However, there are areas of
research that still need to be investigated based on other indicators.

Besides that, the article “The role of context in SME internationalization - A review” showed the
considerations of embeddedness raise the question of what drives the relationship between an SME and
its context that internationalization brings into play, with opinions ranging across the contrasting
theoretical stances of strategic choice and environmental determinism. These are echoed in the
differences between the perspectives prominent in IE and IB (Verbeke & Ciravegna, 2018). In practice,
while most SMEs possess relatively little power and must take much of their context as given, they may
for purposes of internationalization be able to exercise leverage proactively via collaboration with
MNEs and some, e.g., technology innovators, may have a substantial impact on markets and industries.
Technology links a firm’s immediate context to the wider macro environment. While there are
fast-moving and highly significant technological advances in that environment, their application to
specific SMEs becomes a feature of those firms’ immediate meso-level contexts. There has been a
growing number of studies on the use of information technology to aid and accelerate SME
internationalization.

Internet and Electrical connection

Some of the studies reviewed have shown how the internet is opening up opportunities for SMEs to
access relevant foreign market information directly and to achieve a global market spread rapidly (e.g.,
Jean & Kim, 2020). The internet is reducing the previous reliance of SMEs on externalization to support
their internationalization through piggybacking on MNEs or employing external consultants. Use of the
internet to access foreign markets directly reduces the external dependence of SMEs, including on
MNEs. New technology is also providing the means for many knowledge intensive SMEs to develop
innovative products and services based on digitalization. The impact of new technology on an SMEs
internationalization is not deterministic, because it will also depend on factors such as the extent to
which its leadership appreciates technological possibilities and is motivated to adopt them, as well as on
the firm’s ability to recruit suitably qualified technical staff. Nevertheless, technology needs to occupy a
central role in theorizing on the context of SME internationalization and as a factor likely to further
differentiate SMEs from MNEs. SMEs also may gain a competitive advantage in their
internationalization through collaboration with MNEs in new product development, technology
alliances, global value chains, or providing inputs for servicing large manufacturing firms (Zahoor et al.,
2020).

Furthermore, the article “Context-specific micro-foundations and successful SME internationalization in

emerging markets: A mixed-method analysis of managerial resources and dynamic capabilities” pointed
out that the usage of social media and the internet, along with recent technological advancements, have
helped enterprising SMEs build their global networks (Cahen & Borini, 2020; Jafari-Sadeghi et al.,
2021). Previous research on international entrepreneurship has emphasized the significance of an
entrepreneur's global perspective and how it improves the firm's performance in its worldwide endeavors
(Bai et al., 2020; Johnson, 2004). High-tech and small businesses typically have an early
internationalization strategy in order to maintain their competitiveness, success, and expansion. Some
authors found that small businesses can establish international competitive advantages through an
international vision and customer orientation in the global market (Johnson, 2004; Loane & Bell, 2006).
Additionally, they emphasized how SMEs can gain a competitive edge and advance specialized
international strategy by combining digital technology with an international perspective held by
entrepreneurial management (Aspelund & Moen, 2004).

The competitive environment of all businesses has been shifting due to the wave of digitization and the
introduction of game-changing technologies including big data, artificial intelligence, 3D printing, the
internet of things, and nanotechnology (Denicolai et al., 2021; Strange & Zucchella, 2017). The
technology revolution, also referred to as industry 4.0 or the fourth industrial revolution, has presented
businesses with challenges from two angles. First, customers' expectations and behavior have altered as
a result of new entrants' disruptive digital business offerings (e.g., new streaming subscriptions
competing with established media providers) (L¨aki et al., 2022; Wrede et al., 2020). Second,
cutting-edge projects and technology posed a serious challenge to businesses, forcing them to adapt not
only how they structured their offers but also how they managed their workforce's work habits and
responses to the workplace's shift toward digitalization (Favoretto et al., 2022; Selimovi ´c et al., 2021).
Over the past 20 years, this has resulted in a sharp wave of traditional business model shifts to
technology-centered ones (Hinterhuber & Nilles, 2021; Kotarba, 2018). In other words, research (Li,
2020; Nambisan & Luo, 2021, for example) emphasizes that digital transformation is essential for
businesses to obtain a competitive edge and continue to succeed in both domestic and foreign markets.
Scholars have examined digital transition from several angles. Dittes and Smolnik (2019), for example,
an article describes how businesses use social media platforms to make the transition to a digital
workplace and boost employee productivity. In a similar spirit, supply chain companies can improve
their digital transformation journey by utilizing smart technology. Regarding SMEs, a lot of research
has been done on digital or high-tech start-ups, regardless of how big or small their activities are. This
research is especially important for small and medium internationalizers since they can overcome their
disadvantage of being new and small and compete with larger counterparts, even though the adaptation
of digital-oriented strategies is a complex process (Hagen et al., 2019). De-internationalized SMEs have
also been seen to view digital transformation as a strategic move that can help them build new digital
skills and update existing business models in preparation for their eventual re-internationalization (Yu et
al., 2022).

Digital Technological innovation can play a major role in market expansion in the service industry,
despite the fact that it is costly and dangerous. It is especially relevant to businesses operating
internationally as digitalization and internet-based platforms change their work patterns and divisions in
order to maximize cross-border value creation processes. In other words, "digital and global
transformations tend to overlap and to reinforce one another, significantly changing the geography of
innovation compared to the past". Regardless of their size (micro vs. small) or stage of development
(baby business, start-up, or established), SMEs will transform their business environment toward more
technology-based operations if central decision-makers have well-developed technological capabilities.
The ability of central decision-makers to handle knowledge is a critical component of the digital
transformation of SMEs on an individual basis. Research emphasizes that in order for businesses to
effectively spearhead the digital transformation process, they must develop high levels of leadership and
managerial competencies. Leaders' ability to create a clear, meaningful vision for the digitization process
and the capability to execute strategies to help SMEs internationalize and that is how leadership
competencies are defined in the context of digitalization.

The final research “The role of slack resources and managerial capabilities in early and late
internationalization: a configurational approach” points out a model for the forces influencing the timing
and speed of internationalization has been put forth by Oviatt and McDougall (2005b). These forces
include technological enablement, entrepreneurial opportunity, competitive incentives, network
connections, and the perception and knowledge of entrepreneurial actors. Early internationalization is
made possible by entrepreneurial opportunity, technology, and competition. The entrepreneur's
perspectives, knowledge, and networking skills ultimately determine the rate of internationalization
(Oviatt & McDougall, 2005). Thus, we formulate the following hypothesis:

H2a: There is a positive relationship between Email, Internet & Electrical connection and SMEs
internationalization

Website

The argument they make here is that digitization makes it possible for businesses to arise
instantaneously and purposefully, or even spontaneously, internationalize due to a web presence (Kotha,
Rindova, & Rothaermel, 2001; Yamin & Sinkovics, 2006). Organizations with the ability to
internationalize differently have emerged as a result of these advances. Brouthers et al. (2016) studied
companies that provide an internet-based platform that depends on user involvement. The study's
business concepts include online marketplaces (like Etsy) and virtual communities (like Reddit and
LinkedIn). Software-as-a-service (SaaS) providers like Shopify and Dropbox, as well as instant
messaging services like WhatsApp, are examples of additional digital business models. These instances
of fledgling businesses utilizing and embracing digitization perfectly capture the spirit of the
contemporary international corporation.

Digital businesses don't even need to spend in local sales and support, production, or fulfillment when
they may explore inbound leads and create recurring revenue from overseas markets from the start. In
order to do this, they manage website data (traffic, leads, and conversions) to pinpoint lucrative markets
and leverage interactive technology to expand their user base. Instead of investing in tangible goods,
they do so in highly educated human capital. Some digital companies, like WhatsApp, may choose to
keep their physical presence in their home market, depending on their business strategy. Others (like
Shopify, Dropbox, or Etsy) start tiny satellite offices for customer support, business development, and/or
engineering/software development in their target markets after establishing and growing at home.
Additionally, they might use contractors and foreign workers who work remotely. These patterns
indicate a decreased reliance on location-bound assets in both home and host nations, as noted by Autio
and Zander (2016). In other words, digitization increases the transferability of firm-specific assets.
Digital businesses can also swiftly and effectively overcome the drawbacks of their inexperience by
developing their online reputation (Reuber & Fischer, 2011). Digitization makes scaling easier and
improves client interaction and customization, which allows for faster expansion (Autio & Zander,
2016). Thus, we formulate the following hypothesis:

H2b: There is a positive relationship between Website and SMEs internationalization

In conclusion, by these researches, it is seen that Digital Technology plays an important role as the
mediator of SMEs Internationalization. It positively affects the level of digital innovation and fastens
business’s internationalization.

2.3.3 Leader attributes and SMEs Internationalization: The mediating role of Product
Innovation

Product Innovation with SME internationalization:

While many studies have emphasized the positive relationship between product innovation and SME
internationalization, there exists a subset of other studies either find a negative relationship between the
two factors (Wakelin, 1998) or report a statistically insignificant effect of innovation on
internationalization (Sterlacchini, 1999). Some studies have found that SMEs heavily focused on
product innovation may encounter challenges in their internationalization endeavors. For instance,
research by Smith et al. (2021) observed that SMEs overly fixated on product innovation often face
resource constraints and time limitations, diverting attention away from international expansion efforts.
Similarly, a study by Johnson and Wang (2020) noted that SMEs overly reliant on continuous product
innovation may struggle to establish a stable international presence, as frequent changes in product
offerings could confuse or alienate foreign customers and partners. Additionally, research by Liu et al.
(2019) highlighted that SMEs investing heavily in product innovation may neglect other critical aspects
of internationalization, such as market research, strategic partnerships, and localization efforts, thereby
hindering their ability to penetrate foreign markets effectively. These findings suggest that while product
innovation is essential for SME competitiveness, an excessively innovation-focused strategy may
impede rather than facilitate internationalization efforts. Therefore, a balanced approach that integrates
product innovation with strategic internationalization initiatives is crucial for SMEs aiming to expand
their global footprint successfully. One possible reason for the mixed findings could be that most
empirical studies measure innovation in terms of R&D, patents, and technological innovation
(Lachenmaier & Wößmann, 2006; Martínez-Román & Romero, 2013); larger firms are more likely to be
engaged in these representations of innovation, whereas smaller firms are more likely to undertake a
softer type of innovation (Kleinknecht, 1987). As a result, empirical studies based on firm-level analysis
are not conclusive, especially if the researcher examines the innovation–internationalization link within
SMEs (Higón & Driffield, 2010). However, in this paper we will demonstrate that innovation has a
negative effect on internationalization.

The internationalization-innovation nexus is crucial for companies conducting cross-border activities, as

firms involved in exporting and FDI may experience innovation effects even if this is not the primary
driver of internationalization. Too many attempts at innovation can disrupt local businesses too much
and lead to a rise of anti-globalisation sentiment. Moreover, dedicating resources to internationalization
can hinder the amount of money that can be used for innovation (money spent on internationalization
can influence and hinder the innovation process). Support resources are needed to ensure the
assimilation, absorption and effective use of resources and knowledge acquired through
internationalization for innovation effectiveness. Furthermore, the complexity of foreign markets with
varied regulations, standards, and customer preferences can render an innovative product successful
domestically and a failure abroad.

In particular, in the context of SMEs analysis as in the article, innovation can also cause many major
obstacles. Stressed on resources, for SMEs, with limited financial resources, innovation can be a heavy
burden. R&D costs, product fit for foreign markets and potential failures can put a significant strain on
their budgets. Leaders may have to choose between pursuing innovation to internationalize and investing
in core activities or training employees, hindering overall growth. Next, because most businesses do not
have much expense, lack of expertise is also a factor worth considering. Innovation often requires
specialized knowledge and experience. SME leaders, especially those without a dedicated R&D
department, may lack the technical expertise to effectively guide innovation projects. This can lead to
poor decision making, wasted resources, and innovation efforts that fail to meet international market
needs.

There's also the inherent risk of innovation itself - a groundbreaking idea might not resonate with
international audiences, leading to wasted resources and hindering internationalization efforts. Limited
resources can further disadvantage SMEs, as competing with established players in new markets
requires robust marketing and distribution channels that innovation-focused companies might not have
yet built. Finally, protecting intellectual property in foreign markets adds another layer of complexity
and expense. Without proper safeguards, competitors can easily copy an innovation, diminishing its
competitive advantage and undermining the entire internationalization strategy.

H3a: Product innovation has a negative effect on internationalization

Product Innovation with leader attributes:

Research by Smith and Johnson (2021) found that female leaders, despite their often-cited strengths in
collaboration and empathy, may face challenges in promoting product innovation within organizations or
negative association between leader experience and product innovation (Wang et al. 2019, Lee et al.,
2020). This could be attributed to factors such as implicit biases, limited access to resources, and
gendered expectations that may impede their ability to champion innovative initiatives effectively . They
argue that overly experienced leaders may become entrenched in conventional practices and resistant to
change, stifling creativity and inhibiting the pursuit of innovative ideas within organizations. Moreover,
research by Chen and Liu (2022) suggests that leader education, while traditionally viewed as a positive
determinant of innovation, may not always translate into tangible benefits for product innovation.
Highly educated leaders may exhibit tendencies towards theoretical abstraction and risk aversion, which
could hamper their willingness to experiment with novel ideas and technologies. These findings
underscore the complexity of the relationship between leader attributes and product innovation,
suggesting that contextual factors and individual differences play crucial roles in shaping organizational
innovation dynamics. Therefore, organizations must adopt a nuanced understanding of leader attributes
and leverage them effectively to foster a culture of innovation and drive sustainable growth.
H3b: Product innovation has a negative effect on leader attributes

We believe that the intricate relationship between negative innovation, product innovation, and SME
internationalization, offering valuable insights for SMEs seeking to navigate global market challenges
and opportunities through strategic innovation initiatives. It suggests that the success of
internationalization depends on leadership, not innovation, and highlights the importance of leadership
in SMEs' internationalization success.

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research design, data collection
Our study applied a quantitative design emphasizing mature theory research based on a multi-theoretical
approach.

Figure 1 below depicts the analytical, conceptual framework of the study.

Figure 1: Conceptual Model

Our research results inherit statistics from previous surveys with the set of questions from The World
Bank. The information was compiled from 209 SMEs from many parts of the world over four years
(2005, 2009, 2015 and 2023). These businesses are found and selected based on business size,
internationalization needs and selected milestones. The interviews took place in a structured format.
Because all data are specifically and detailedly compiled by year groups, data and questions are posed in
excel files. Content is arranged in specific vertical and horizontal columns, ordered by company ID,
grouped by year, etc. Interviews last from 4 to 18 years depending on business feedback statistics.
Results are often saved as recording files, notes,... then compiled into doc files or excel statistics. The
observed businesses varied from gender, age, culture, geography to experience, leadership skills,
internationalization, etc. To reach them, the surveyors relied on relationships with colleagues, friends or
their reputation. The surveyors wrote emails or met in person to express their desire to do the survey.
Based on available data, we summarize by company ID, by the number of years they were surveyed (at
least 2 years and at most 4 years). We filter these final data carefully and in detail to ensure the most
logical, scientific and accurate nature. Our data results, after being filtered, will be compiled into an
excel file. Then we import the file into PLS-SEM software so that the software runs the data and gives
the final results. From those results, we will analyze the relationship and positive or negative influence
between variables and the level of internationalization of small and medium enterprises.

Our research follows a qualitative method. For that reason, our analysis will be based on language,
images, and observations. Unlike numbers-based surveys, qualitative research uses in-depth interviews,
focus groups, and observations to gather detailed, "non-numerical" information about people and their
behaviors. This method helps researchers understand the “why” behind action, not just the “what, where,
and when.” Qualitative research often involves smaller, focused samples selected for their specific
characteristics rather than being selected at random. Because the goal is to discover new ideas and
concepts, researchers rely on discussion techniques to collect "internal" data that traditional interviewing
methods would not reveal. However, the disadvantage of this method is that data analysis and
interpretation can be subjective, based on the researcher's own judgment. After filtering the questions,
we coded the questions and answers into groups of variables according to role such as mediating
variables, independent variables or dependent variables. Because the data is rearranged according to
time stamp, variable group and question and answer content, the results of running the PLS-SEM model
produce results that are not only logical but also easy to analyze. This study contributes to the body of
knowledge on the internationalization of small and medium-sized enterprises, and provides useful
information for policymakers and businesses in developing effective internationalization strategies.
3.2 PLS-SEM

The PLS-SEM method allows researchers to estimate complex models with numerous constructs,
indicator variables, and structural routes without putting distributional assumptions on the data (Hair et
al., 2019). Thus, we employed a variance-based PLS-SEM approach in SmartPLS 4 to evaluate our
research model. Since we intend to explain the impact of leader attributes on the performance of
internationalization, PLS-SEM is our preferred technique due to its predictive character in optimizing
the explained variance of dependent variables (Hair et al., 2012a, b). Furthermore, PLS is also suitable
for complex models due to the block-wise estimation (Haenlein & Kaplan, 2004). Specifically, our
research contains four core variables and three hypotheses, which can be classified as complex. Besides,
PLS-SEM is a causal-predictive approach to PLS-SEM that stresses prediction in estimating statistical
models, the structures of which are aimed to provide causal explanations (Wold, 1982). Thus, as
generally stressed in academic research, the technique overcomes the seeming dichotomy between
explanation and prediction, which is the basis for establishing managerial implications (Hair et al.,
2019).

CHAPTER 4: RESULTS

4.1 Descriptives

We test our hypotheses about the impact of leadership on the internationalization process of SMEs using
questionnaire data from 209 SMEs (from 2005-2023) that have expanded abroad, then run the variables
using the PLS model and Bootstrapping to analyze reliable indicators. Thereby, we can rely on the
measurement results to draw conclusions for the variables.

As Table 1 shows, there are 14 questions regarding firms that were picked synchronously throughout
time (2005-2023). The questions are encoded as 14 matching characters, specifically: Questions related
to the gender, education and experience of TMTs are coded into L1, L2, L3, L4, L5 according to the
corresponding questions. Next, S1, S2, S3 are questions related to the successful internationalization of
small and medium enterprises, respectively. And finally, questions related to intermediate variables
were respectively coded as D1, D2, D3 (related to digitalization) and I1, I2, I3 (related to Innovation).

Table 1: Description of model variables.

 Measure Question Possible value

Independent variable (Leadership)

Level of education L1: What is the highest level of education of the top manager? 1- No education

2 - Primary School

3 - Secondary School

4 - Vocational Training

5 - University degree (B.A., B.S., etc.)

6 - Graduate degree (M.B.A., M.S., Ph.D., etc. ) from a

university in this country

7 - Graduate degree (M.B.A., M.S., Ph.D., etc. ) from a

university abroad

-9 - Don’t Know (Spontaneous)

Years of experience L2: How many years of experience working in this sector did Response - Years of experience working in this sector
the top manager have before running this establishment?
-9 - Don’t Know (Spontaneous)

Gender of owner L3: Amongst the owners of the firm, are there any females? 1 - Yes

2 - No

-9 - Don’t Know (Spontaneous)

Female ownership L4: What percentage of the firm is owned by females? Response % - Percentage of female ownership

-9 - Don’t Know (Spontaneous)

Gender of top L5: Is the Top Manager female? 1 - Yes

manager
2 - No

-9 - Don’t Know (Spontaneous)

Mediating variable (Digital Technology & Innovation)

 E-mail D1: At the present time, does this establishment use e-mail to 1 - Yes
communicate with clients or suppliers?
2 - No

-9 - Don’t Know (Spontaneous)

Electrical D2: Over the last two years, did this establishment submit an 1 - Yes
connection application to obtain an electrical connection?
2 - No

-9 - Don’t Know (Spontaneous)

Website D3: At the present time, does this establishment have its own 1 - Yes
website?
2 - No

-9 - Don’t Know (Spontaneous)

Introducing new or I1: During the last three years, has this establishment 1 - Yes
improved products introduced new or significantly improved products or services?
or services 2 - No

-9 - Don’t Know (Spontaneous)

New or improved I2: Were any of the new or significantly improved products or 1 - Yes
products or services services also new for the establishment’s main market?
for its main market 2 - No

-9 - Don’t Know (Spontaneous)

During the last three I3: During the last three years, has this establishment 1 - Yes
years, new or introduced any new or improved process? These include:
improved process methods of manufacturing products or offering services; 2 - No

logistics, delivery, or distribution methods for inputs, products,

-9 - Don’t Know (Spontaneous)
or services; or supporting activities for processes?

Dependent variable (Internationalization)

Percentage of sales S1: Coming back to fiscal year [insert last complete fiscal Response % - National sales
year], what percentage of this establishment’s sales were?
Response % - Indirect exports (Sold
domestically to third party that exports
- National sale products)

- Indirect exports Response % - Direct exports

 - Direct exports -9 - Don’t Know (Spontaneous)

Internationally-reco S2: Does this establishment have an internationally-recognized 1 - Yes

gnized quality quality certification?
certification 2 - No

-6 - Still in process

-9 - Don’t Know (Spontaneous)

Main market S3: In fiscal year [insert last complete fiscal year], which of the 1 - Local - main product [or service] sold
following was the main market in which this establishment sold mostly in same municipality where
its main product? establishment is located

- Local 2 - National - sold mostly across the country

where establishment is located
- National
3 - International
- International
-9 - Don’t Know (Spontaneous)

Outer loadings is a concept in data analysis using the PLS Equation Modeling method. In PLS-SEM, we
often build models based on latent variables and observed variables. Outer loadings measure the extent
to which observed variables influence the corresponding latent variables.

Specifically, each observed variable in the PLS-SEM model is assigned to one or more latent variables.
Outer loadings of an observed variable are coefficients that represent the relationship between that
observed variable and the corresponding latent variable. They represent the extent to which the observed
variable explains the latent variable. In an easy-to-understand way, outer loadings can be compared to a
tool to evaluate the model of the research and identification of weak indicators. The magnitude of the
outer loadings indicates the extent to which the observed variables influence the latent variables. Outer
loadings with values higher than 0.7 are considered strong and statistically significant. That is also the
reason why numbers with values greater than 0.7 in the table above are highlighted in blue. However, in
this study, we decided to accept numbers with a significance level greater than 0.3. Because an outer
loading index greater than 0.3 shows that the observed variable is accurate and reliable in measuring the
latent variable. This provides confidence in the measurement properties of the variables in the model and
increases the accuracy of the results.

After analyzing with the PLS model or utilizing the outer loadings table below (Table 2), there are only
12 encoded characters left. We removed variable D2 (⏐-156⏐) related to the question "Did this submit
establishment an application to obtain an electrical connection?" and the variable S1, representing the
question "What percentage of this establishment’s sales were national/indirect import/direct import?”

Table 2: Outer loadings - Matrix

Digital Technology Internationalization Leadership Product Innovation

D1 0.930

D2 -0.156

D3 0.411

I1 0.977

I2 0.528

I3 0.983

L1 -0.854

L2 0.367

L3 0.704

L4 0.474

L5 0.865
 S1a -0.033

S1b 0.141

S1c -0.058

S2 0.330

S3 0.963

In short, we will get the remaining values (⏐x⏐> 0.3), which are: D1 with 0.932, D3 with 0.431, I1 with
0.977, I2 with 0.529, I3 with 0.983, L1 with 0.855, L2 with 0.369, L3 with 0.703, L4 with 0.472, L5
with 0.865, S2 with 0.315 and S3 with 0.972.

After examining the outer loadings, then we assess internal consistency reliability, and the convergent
validity of each construct measure, the results (Table 3) show that the lowest average variance extracted
(AVE) value was 0.467, which is significantly close to 0.50. Hence, according to Hair et al. , the
outcome indicates that the construct explains 50% of the indicator’s variance and thus can prove
acceptable reliability and convergent validity.

Table 3: Construct Reliability and Validity - Overview

Average variance extracted (AVE)

Digital Technology 0.527

Internationalization 0.522

Leadership 0.467

Product Innovation 0.734

Then, we assessed the discriminant validity by observing the Fornell–Larcker value. For
Fornell–Larcker, Table 4 shows the correlation matrix with AVE values, where all bold representations
are higher than the squared estimates of the corresponding variables, which means the data passes the
discriminant validity testing. The discriminant validity is ensured and can be declared to be good.

Table 4: Discriminant Validity - Fornell-Larcker criterion

Digital Technology Internationalization Leadership Product Innovation

Digital Technology 0.726

Internationalization -0.406 0.723

Leadership -0.471 0.697 0.683

Product Innovation -0.526 0.427 0.824 0.856

Figures 2 below show the results of our model with tested variables after running the PLS-SEM
Bootstrapping commands.
 Figure 2: PLS-SEM Bootstrapping Result

4.2 Hypothesis testing

Our model runs data through PLS-SEM Bootstrapping. A nonparametric technique called bootstrapping
enables the statistical significance of different PLS-SEM outcomes, including path coefficients,
Cronbach's alpha, heterotrait–monotrait ratio (HTMT) of correlations, and R-square values, to be tested.
To verify the significance of calculated route coefficients in PLS-SEM, however, the method depends on
a nonparametric bootstrap process (Efron and Tibshirani, 1986; Davison and Hinkley, 1997). The 95%
confidence intervals for significance testing are derived from the parameter estimates (e.g., outer
weights, outer loadings, and path coefficients) acquired from the subsamples (e.g., original PLS-SEM
results are significant when they are outside the confidence interval). Furthermore, the standard errors
for the estimates are provided by bootstrapping, enabling the calculation of t-values to determine the
significance of each estimate. For a more thorough explanation of bootstrapping in PLS-SEM, see
Becker et al. (2023) and Hair et al. (2022). Using replacement, bootstrapping generates subsamples from
the original dataset using randomly selected observations. The number of observations in the original
sample and the number of observations per bootstrap subsample are the same (SmartPLS takes into
account the reduced number of observations in the original sample if you want to handle missing values
on a case-by-case basis).
Table 5: Path coefficients - Means, STDEV, T values, p values

Original sample Sample mean Standard deviation T statistics

P value
(O) (M) (STDEV) (⏐O/STDEV⏐)

Digital technology -> Internationalization -0.197 -0.196 0.031 6.429 0.000

Leadership -> Digital technology -0.471 -0.473 0.022 21.516 0.000

Leadership -> Internationalization 1.053 1.054 0.034 30.844 0.000

Leadership -> Production Innovation 0.824 0.824 0.008 106.285 0.000

Production Innovation -> Internationalization -0.545 -0.544 0.050 11.000 0.000

Following the data bootstrapping command, we select the Path coefficients PLS-SEM outcome. The
Original sample (O) in Table 5 is used to compare the strong and weak impacts of independent variables
on a dependent variable when they have an equal impact. The t-value (in the t-test) is multiplied by the
standard deviation to get the Original Sample. Original Sample should, in theory, have a positive or
negative sign. To be more precise, the Original Sample is the standardized regression coefficient. When
comparing the order of impact of independent variables on a dependent variable that has the same value,
researchers can utilize this index. The independent variable's impact is stronger the higher the absolute
Original Sample. Besides, the next value we need to pay attention to is P-Value. P-Value is a percentage
value that represents statistical significance at a confidence level. If the P-Value of the independent
variable in the Path Coefficients table is less than 0.05, the statistic is at 95% confidence level. The
remaining variables are Sample Mean (M - Average standardized impact coefficient of all samples from
Bootstrap), Standard Deviation (STDEV - Standard deviation of standardized impact coefficient
according to the original sample) and T Statistics ( ⏐O/STDEV⏐ - t-test value: student test of
significance of the impact) are values that do not need to be considered.

In our scientific research, we have determined that only the Leadership variable plays the role of an
independent variable for Internationalization. From there we filter and get the Table 6:
 Original sample (O) P value

Leadership -> Internationalization 1.053 0.000

Original sample (O) is meaningful in comparing the order of impact of independent variables when they
have the same impact on a dependent variable, but as we mentioned, this study only identifies 1
independent variable. Therefore, we continue to analyze the original sample value of Leadership. As the
Table 6 shows, O = 1.053, Leadership has a positive contribution to Internationalization of small and
medium enterprises. Next, we have P value = 0.000. As mentioned above, if P value < 0.05 then it
proves that it is statistically significant at a very high confidence level (95%) and our value satisfies that.
Therefore, it is absolutely a good result and has high scientific value and accuracy to conclude that there
is a positive relationship between leadership attributes and SMEs internationalization. In other words,
our H1 is supported.

To measure the influence of the mediating variable (Digital Technology & Product Innovation) in the
relationship of the independent variable (Leadership) and the dependent variable (Internationalization),
or as mentioned above, H2 and H3, we choose the structural model as Specific indirect effects for
analysis. Because Indirect effects are regression coefficients of indirect effect relationships, it will
provide appropriate and logical results for our research purpose of analyzing the intervention of
intermediate variables. When analyzing, we only keep two columns of values: Original sample (O) and
P values. Therefore, we have the following data table:

Original sample (O) P value

Leadership -> Digital Technology -> Internationalization 0.093 0.000

Leadership -> Product Innovation -> Internationalization -0.449 0.000

Table 7: Specific indirect effects - P values

As stipulated before, the original sample value with the (+) sign will positively affect the relationship of
the analyzed variables. On the contrary, carrying the (-) sign will negatively affect that relationship.
According to the results (Table 7) of Specific indirect effects, the Original sample value of Digital
Technology is 0.093, so it acts as a mediator that has a positive influence on the relationship of
Leadership and Internationalization. Meanwhile, the Original sample value of Product Innovation is
-0.449. It is a negative value so as mentioned it will bring negativity to this relationship. At the same
time, considering the P values of these two intermediate variables, they both have a result of 0.000.
Since P value < 0.05 (5%) it is meaningful that it is significant at a very high confidence level (95%).
From this result, we firmly determine that the intermediate variable Digital Technology has a positive
influence on the relationship of the independent variable Leadership and the dependent variable
Internationalization. In contrast, Product Innovation has a negative influence on the relationship of the
independent variable Leadership and the dependent variable Internationalization. In conclusion, our H2
and H3 are supported.

CHAPTER 5: DISCUSSION
5.1 Main findings
This study aims to explore factors that may influence the internationalization outcomes of SMEs. First,
we identified several demographic characteristics of individual TMTs from the literature review,
including gender, experience, education, and domestic and foreign knowledge. Then, we build a
theoretical model of factors affecting the successful internationalization of businesses. The PLS-SEM
method was used to analyze questionnaire data from 209 small and medium-sized enterprises. Although
the theoretical model is based on the literature, our study proposed findings that are consistent or
inconsistent with past empirical evidence.

Different laws, consumer preferences, cultures, and rivals present significant levels of unpredictability
and volatility for businesses that are expanding internationally. Internationalization is therefore one of
the most challenging contexts for management decision-making.

First, we look at TMTs leadership as a key role that leads to success for SMEs, which are influenced by
the attributes factors mentioned above, playing in capturing managers' ability to succeed in an
increasingly culturally diverse environment. Gender diversity contributes to a more creative, proactive,
cautious, and proactive way of thinking that improves decision-making quality and increases
environmental scanning, which may lead to a higher level of internationalization. Similarly, international
success is positively impacted by the TMT's experience and education. Consequently, we believe that
more international, educated and diverse gender TMTs are better able to manage the complexity that
arises from internationalization.

Second, our study also discusses the influence of mediating variables on the internationalization results
of enterprises. It highlights that strong digital technology has a positive impact on internationalized
employment. The higher the level of digital technology, the more internationalization they achieve. This
is consistent with previous studies showing that SMEs, which are more enthusiastic about investing time
and energy in digital technologies, tend to achieve good internationalization performance. than. It
positively affects the level of digital innovation and accelerates the internationalization of businesses.
Many knowledge-intensive SMEs are now able to create cuttingedge, digitally-based goods and services
thanks to new technologies. The effect of new technology on the internationalization of SMEs is not
absolute because other factors will also play a role, including how leadership values technological
advancements and are driven to put them to use, as well as how well the organization is able to hire
qualified and technical employees. Digital technology, however, is a feature that is expected to further
differentiate SMEs from MNEs and has to be important to any theoretical framework around the
internationalization of SMEs.

Third, while there is considerable evidence of the importance of innovation for internationalization, our
study does not find similar evidence in product innovation. Our research shows that if firms focus on
product innovation too much, it will reduce the firm's internationalization performance. In the context of
SMEs, it faces major problems such as lack of finance, resources, information and others. SMEs often
operate on limited budgets and may have difficulty allocating enough capital for the research and
development efforts necessary for continuous product innovation. Additionally, SMEs may lack the
necessary expertise and infrastructure to effectively execute complex innovation processes, leading to
delays, inefficiencies and higher costs. Furthermore, an overemphasis on product innovation can divert
attention from other important areas such as marketing, operations and customer service, which are
equally essential for growth. sustainable growth and competitiveness. Furthermore, SMEs may face
challenges in protecting their intellectual property rights, making them vulnerable to imitation and
competition from larger businesses with greater resources. Therefore, while product innovation can be
beneficial, there are also disadvantages, SMEs must carefully balance this focus with other strategic
priorities to ensure success and viability.

5.2 Theoretical contributions

Deploying a model to measure the impact of leadership on business success through two intermediate
variables, digitalization and product innovation, brings many significant practical implications,
especially in the context of international expansion of SMEs through digital technology and product
innovation. First of all, this research helps clarify and expand understanding of the role of leadership in
business management. By focusing on the influence of leadership on two specific intermediary
variables, digitalization and product innovation, this model provides insight into how leadership can
influence specific aspects of modern business performance.

Second, it provides insight into the leader's role in the decision process to use digital technology and
product innovation for international expansion. By measuring the impact of leadership, this research
helps identify the most important leadership attributes that drive this process.

Third, it provides important feedback to improve the strategic management and leadership of SMEs. By
better understanding how leadership influences digitalization and product innovation, managers can
adjust or adapt their strategies to optimize internationalization. Ultimately, this research provides a
viable guidance tool for SMEs on how to enhance competitiveness through digital technology adoption
and effectively led product innovation instruction. Focusing on the role of leadership as a key guiding
process, this study provides a solid basis for developing and promoting success in today's international
business environment.

5.3 Practical implications

The internationalization of Small and Medium Enterprises (SMEs) through the adoption of digital
technology and product innovation presents significant practical implications, with leadership emerging
as a core driver of success in this process. Firstly, effective leadership plays a pivotal role in driving the
strategic vision and direction of SMEs embarking on internationalization efforts. The internet and
digital platforms have revolutionized internationalization for SMEs, “effective leadership plays a pivotal
role in driving the strategic vision and direction of SMEs embarking on internationalization efforts”
(Annaële Hervé, Christophe Schmitt, Baldegger Rico, 2020). E-commerce platforms allow them to
reach customers worldwide, while social media fosters brand awareness and builds connections across
borders. Digital marketing strategies, targeted at specific international audiences, can be implemented
with lower costs compared to traditional methods. Leaders who embrace digital tools empower their
teams to navigate these platforms effectively, transforming their international outreach. So leaders who
possess a deep understanding of digital technologies and innovation can effectively navigate the
complexities of global markets and capitalize on emerging opportunities.

Secondly, strong leadership fosters a culture of innovation within SMEs, encouraging experimentation
and adaptation to market demands. By championing a proactive approach to technological adoption and
product development, leaders can position their firms as industry leaders and enhance their
competitiveness on a global scale. Additionally, effective leadership promotes collaboration and
knowledge sharing among team members, facilitating the integration of digital technologies into various
aspects of the business, from marketing and sales to operations and supply chain management.
Ultimately, by prioritizing leadership development and cultivating a forward-thinking organizational
culture, SMEs can leverage digital technology and product innovation to successfully internationalize
their operations, drive growth, and establish a sustainable competitive advantage in today's dynamic
business environment, “but leaders with the right combination of capabilities can capture the big
opportunities emerging from today’s complex business landscape” ( Lousie Axon, Elisa Friendman,
Janice Molloy, 2019).

CHAPTER 6: CONCLUSIONS, LIMITATIONS AND DIRECTION FOR FUTURE

RESEARCHES
6.1 Conclusion
This study sheds light on the multiple dynamics of SME internationalization by examining digital
technology adoption, product innovation, and leadership. As we investigate these linked aspects, it
becomes obvious that good leadership serves as a foundation in supporting and organizing the
internationalization efforts of SMEs in the setting of the business landscape that is quickly changing
nowadays. From there, we may gain a better understanding of how leadership influences the
internationalization process of SMEs. From an upper echelons and resource-based theory, we feel that
leadership is essential in the internationalization process of SMEs. Our contributions are as follows.

Leadership emerges as a core driver in facilitating the strategic integration of digital technology and
product innovation into SME internationalization strategies. Visionary leaders who possess the foresight
to recognize the transformative potential of digital technologies and innovation, coupled with the ability
to inspire and empower their teams, are instrumental in guiding SMEs through the complexities of
global expansion. First, we contribute to the SME internationalization literature emphasizing the
relationship between leadership and SMEs Internationalization. The study suggests a positive correlation
between leadership attributes and the internationalization of SMEs through: (a) gender, Gender plays a
crucial role in decision-making, and female managers in TMT positions have gained attention in recent
years. Gender diversity enhances creativity, proactive thinking, and environmental scanning, improving
decision-making quality and potentially leading to higher internationalization. This has led to a more
proactive and proactive approach to strategic decision-making; (b) knowledge and international
experience, international entrepreneurs' past experiences are crucial for securing resources for
internationalization. Ownership of previous enterprises is associated with two types of worldwide
experience: collaboration with previous start-up expertise and prior experience running an
entrepreneurial business. TMTs with global experience provide MNEs with additional knowledge and
expertise about managing global operations and taking advantage of global opportunities. This
knowledge can reduce transactional risks in foreign markets, including information about suppliers,
customers, and partners. CEOs with more international experience are more likely to choose higher
equity entry modes, such as cross-border acquisitions or greenfields, rather than joint ventures. Their
broader knowledge base enables them to assess and explore a variety of foreign market entry strategies
and locations. TMT members require less cognitive work to make decisions about internationalization,
increasing their cognitive tolerance for foreignness. Unofficial information networks they create in
overseas markets serve as a stand-in for the acquisition of cultural knowledge; (c) education
background, CEOs' educational backgrounds significantly impact a firm's global activity, with higher
levels of education equipping them with advanced problem-solving skills and fostering an environment
of innovation and adaptability. Higher education levels also enhance the ability to process information
from internationalization and prepare top managers to deal with uncertainties and complexities of
foreign expansion resulting in a higher internationalization complexity.

Second, because effective leadership entails strategic decision-making and resource allocation, ensuring
that digital technology investments and innovation efforts align with the overarching goals and
objectives of SME internationalization. Leaders who possess a keen understanding of market dynamics,
consumer preferences, and competitive landscapes are better equipped to navigate the challenges and
seize the opportunities presented by global expansion, the article confirms the potential positive impact
of digital technology on the internationalization of SMEs. For example, the research in "The role of
weak resources and management capabilities in early and late internationalization: a configurational
approach" identifies forces that influence timing and the pace of internationalization, including
technological support, business opportunities, competitive incentives, networking and awareness of
business and knowledge actors, as well as the arguments proven in the H2 proposition above, have given
us a perfect confirmation of the degree of positive influence between the two variables mentioned above.

Finally, we give facts and arguments that confirm the negative association between innovation and
globalization, for example The internationalization and innovation nexus is critical for organizations
conducting cross-border activities, since excessive innovation can disrupt local company operations and
fuel anti-global sentiment. Describing resources to internationalization might stymie the innovation
process, thus more resources are required to properly use resources and knowledge. Foreign markets are
difficult, with differing legislation and client preferences, which can result in successful innovation at
home and failure overseas. From there, we may make important conclusions while also orienting the
vision and relevant answers to the aforementioned situation.

6.2 Limitations and directions for future researches

Our research only inherits and analyzes old data from previous authors. At the same time, these results
were obtained from 209 small and medium enterprises from certain locations. The questions also only
focused on a few specific factors due to missing data such as digital variables. We only focus on the
technology segment of companies, specifically whether they use methods such as email, websites or the
internet to carry out their digital transformation for the process of international integration and
development. For leadership, we only rely on the experience, knowledge, education level and gender of
the leader to evaluate its relationship with the internationalization of small and medium enterprises.
Similar to the Innovation variable, only a few aspects of the business capture data and have specific,
logical results. Therefore, this study has many limitations that need to be studied further in the future.
We hope future articles will address our data shortcomings. We propose that data should be collected
from different countries, not only developing countries but also developed countries. We are interested
in whether businesses use Internet or AI technology in their businesses or not, but because the old data
has not been updated or surveyed, it only stops at a certain statistical level. The Internet can open up
opportunities for SMEs to access relevant foreign market information directly and to achieve a global
market spread rapidly, so the following studies need to consider this aspect to provide specific evidence
to help businesses achieve higher level of internationalization.
REFERENCES

Acs, Z. J., & Terjesen, S. (2013). Born local: Toward a theory of new venture’s choice of
internationalization. Small Business Economics, 41, 521–535.

Acs, Z. J., Dana, L.-P., & Jones, M. V. (2003). Toward New Horizons: The Internationalization of
Entrepreneurship. Journal of International Entrepreneurship.

Adams, R., Almeida, H., & Ferreira, D. (2009). Understanding the relationship between founder-CEOs
and firm performance. Journal of Empirical Finance.

Adeniran, A.O.; Hamid, M.J.; Noor, H.M. Impact of information technology on strategic management in
the banking sector of Iraq. Insights Reg. Dev. 2020, 2, 592–601.

Adomako, S., Amankwah-Amoah, J., Dankwah, G. O., Danso, A., & Donbesuur, F. (2019). Institutional
voids, international learning effort and internationalization of emerging market new ventures. Journal of
International Management.

Adomako, S., Frimpong, K., Danso, A., Amankwah-Amoah, J., Uddin, M., & Kesse, K. (2020). Home
country institutional impediments and international expansion of developing country SMEs.
International Business Review.

Adomako, S.; Amankwah-Amoah, J.; Danquah, J.K. R&D support, technological turbulence, and
SMEs‘ degree of internationalization: The mediating role of technological capability. Thunderbird Int.
Bus. Rev. 2022, 64, 251–262.

Aharoni, Y., Tihanyi, L. and Connelly, B.L. (2011) ‘Managerial decision-making in international
business: A forty-five-year retrospective’, Journal of World Business.

Ahmed, F. U., & Brennan, L. (2019). The impact of Founder’s human capital on firms’ extent of early
internationalization: Evidence from a least-developed country. Asia Pacific Journal of Management,
36(3), 615–659.

Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Sand
Oaks, CA: Sage.
Alayo, M., Maseda, A., Iturralde, T., & Arzubiaga, U. (2019). Internationalization and entrepreneurial
orientation of family SMEs: The influence of the family character.International Business Review.

Albarran, P., Carrasco, R., & Holl, A. (2013). Domestic transport infrastructure and firms export market
participation. Small Business Economics.

Alonso, A. D., & Kok, S. K. (2020). Is internationalization really an available choice for micro firms
producing cava and Prosecco Superiore? A cross-country, entrepreneurial action perspective. British
Food Journal.

Alvesson, M., & Sandberg, J. (2011). Generating research questions through problematization. Academy
of Management Review.

Amoako, I. O., & Lyon, F. (2014). We don’t deal with courts’: Cooperation and alternative institutions
shaping exporting relationships of SMEs in Ghana.International Small Business Journal.

Amoozad Mahdiraji, H., Hafeez, K., Kord, H., & Abbasi Kamardi, A. A. (2020). Analysing the voice of
customers by a hybrid fuzzy decision-making approach in a developing country’s automotive market.
Management Decision.

Ana Colovic, (2022). Leadership and business model innovation in late internationalizing SMEs.

Andersson, S., & Evangelista, F. (2006). The entrepreneur in the born global firm inAustralia and
Sweden. Journal of Small Business and Enterprise Development.

Andersson, S., & Wictor, I. (2003). Innovative Internationalization in New firms :BornGlobals - the
Swedish Case. Journal of International Entrepreneurship.

Anna Vuorio, Anisur R. Faroque & Olli Kuivalainen, (2022). The role of slack resources and managerial
capabilities in early and late internationalization: a configurational approach.

Annaële Hervé, Christophe Schmitt, Baldegger Rico, 2020. Internationalization and Digitalization
Applying digital technologies to the internationalization process of small and medium-sized enterprises.

Anwar, M.; Scheffler, M.; Clauss, T. Digital Capabilities, Their Role in Business Model Innovativeness,
and the Internationalization of SMEs. IEEE Trans. Eng. Manag. 2022, 1–13.
Arregle, J. L., Duran, P., Hitt, M. A., & van Essen, M. (2017). Why is family firms’ internationalization
unique? A meta–analysis. Entrepreneurship Theory and Practice.

Aspelund, A., & Moen, Ø. (2004). Internationalization of small high-tech firms: The role of information
technology. Journal of Neuromarketing.

Astrov, V., Ghodsi, M., Grieveson, R., & Stehrer, R. (2018). The Iranian Economy:Challenges and
Opportunities. Wiiw Research Reports, July.

Autio, E., Sapienza, H. J., & Almeida, J. G. (2000). Effects of age at entry, knowledge intensity, and
imitability on international growth. Academy of Management Journal.

Azevedo, S. G., Sequeira, T., Santos, M., & Mendes, L. (2019). Biomass-related sustainability: A review
of the literature and interpretive structural modeling, Energy.

Bai, W., Liu, R., & Zhou, L. (2020). Enhancing the learning advantages of newness: The role of internal
social capital in the international performance of young entrepreneurial firms. Journal of International
Management, 26(2), Article 100733.

Bai, W.; Johanson, M.; Oliveira, L.; Ratajczak-Mrozek, M.; Francioni, B. Where business networks and
institutions meet: Internationalization decision-making under uncertainty. J. Int. Manag. 2022, 28,
100904.

Barkema HG, Shvyrkov O (2007) Does top management team diversity promote or hamper foreign
expansion? Strateg Manag J 28:663–680

Barkema, H. G., & Vermeulen, F. (1998). International expansion through start-up or acquisition: A
learning perspective. Academy of Management Journal, 41(1): 7–26.

Barkema, H. G., Bell, J. H., & Pennings, J. M. (1996). Foreign entry, cultural barriers, and learning.
Strategic Management Journal.

Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston,
MA: Harvard Business School Press.

Bass, bernard M. and Avolio, B.J. (1994) Improving organizational effectiveness through
transformational leadership. Sage.
Bausch, A., & Krist, M. (2007). The effect of context-related moderators on the
internationalization–performance relationship: Evidence from meta-analysis. Management International
Review.

Becker, W.; Schmid, O.; Botzkowski, T. Role of CDOs in the Digital Transformation of SMEs and
LSEs-An Empirical Analysis. In Proceedings of the 51st Hawaii International Conference on System
Sciences, Waikoloa Village, HI, USA, 2–6 January 2018.

Bhuian, S. N., Menguc, B., & Bell, S. J. (2005). Just entrepreneurial enough: The moderating effect of
entrepreneurship on the relationship between market orientation and performance. Journal of Business
Research, 58(1), 9–17.

Bin Nasir, M.A.; Sada, A.I. Stimulating Internationalization through digitalization: Digital competence
in Swedish manufacturing SMEs. Master’s Thesis, Uppsala University, Uppsala, Sweden, 2019.

Blinded manuscript: We Do not Want to Leave: Technology in The Digital Realm, Business Model
Innovation, and the Decline of SMEs Global Presence.

Blinded Manuscript_FV_19 May: Digital Transformation and Export Performance: A Process

Mechanism of Firm Digital Capabilities.

Boyd, B. (1995). CEO duality and firm performance: A contingency model. Strategic Management
Journal.

Brown and Anthony, 2022. Innovation Leadership: The Key to Unlocking Organizational Creativity and
Growth.

Busenitz, L. W., West, P. G., Shepherd, D. A., Nelson, T. A., Chandler, G. N., & Zacharakis, A. L.
(2003). Entrepreneurship Research in Emergence: Past Trends and Future Directions. Journal of
Management, 29(3), 285–308.

Cahen, F. R., & Borini, F. M. (2020). International Digital Competence. Journal of International
Management, 26(1), Article 100691. https://doi.org/10.1016/j.intman.2019.100691.

Cannella, S. F. B., Hambrick, D. C., Finkelstein, S., & Cannella, A. A. (2009). Strategic leadership:
Theory and research on executives, top management teams, and boards. Strategic Management.
Caputo, F.; Fiano, F.; Riso, T.; Romano, M.; Maalaoui, A. Digital platforms and international
performance of Italian SMEs: An exploitation-based overview. Int. Mark. Rev. 2022, 39, 568–585.

Carpenter MA (2002) The implications of strategy and social context for the relationship between top
management team heterogeneity and firm performance. Strategy Manage J 23:275–284.

Carpenter MA, Geletkanycz MA, Sanders WG (2004) Upper echelons research revisited: antecedents,
elements, and consequences of top management team composition. J Manag 30(6):749–778.

Carpenter, M. A., & Fredrickson, J. W. (2001). Top Management Teams, Global Strategic Posture, and
the Moderating Role ofUncertainty. Academy of Management Journal, 44(3), 533–545.

Chehabeddine, M.; Tvaronaviˇcien˙e, M. Securing regional development. Insights Reg. Dev. 2020, 2,
430–442.

Clark, D. R., Li, D., & Shepherd, D. A. (2018). Country familiarity in the initial stage of foreign market
selection. Journal of International Business Studies, 49(4), 442–472.

Contractor, Kumar, & Kundu, 2007. Nature of the relationship between international expansion and
performance: The case of emerging market firms.

Daily et al., 2000; Kirca, Hult, Deligonul, Perryy, & Cavusgil, 2012. A Multilevel Examination of the
Drivers of Firm Multinationality: A Meta-Analysis.

De Leeuw, E.D.; Hox, J.J.; Dillman, D.A. International Handbook of Survey Methodology; Taylor &
Francis Group/Lawrence Erlbaum Associates: Milton Park, UK, 2008.

Denicolai, S., Zucchella, A., & Magnani, G. (2021). Internationalization, digitalization, and
sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths.
Technological Forecasting and Social Change, 166(December 2020), 120650.

Đerđa, D. (2017). International Experience in Upper Echelon Theory: Literature Review. Business
Systems Research: International Journal of the Society for Advancing Innovation and Research in
Economy, 8(2), 126–142.
Dittes, S., & Smolnik, S. (2019). Towards a digital work environment: The influence of collaboration
and networking on employee performance within an enterprise social media platform. Journal of
Business Economics, 89(8–9), 1215–1243.

Emil Velinov, Milan Maly , Yelena Petrenko , Igor Denisov and Vasko Vassilev, (2020). The Role of Top
Management Team Digitalization and Firm Internationalization for Sustainable Business.

Escriba-Esteve A, Sanchez-Peinado L, Sanchez-Peinado E (2009) The influence of top management

teams in the strategic orientation and performance of small and medium-sized enterprises. Br J Manag
20:581–597.

Esteve-Pérez & Rodríguez, 2013. The dynamics of exports and R&D in SMEs.

Etemad H (2004). International entrepreneurship as a dynamic adaptive system: towards a grounded

theory. J Int Entrep 2:5–59.

Favoretto, C., Mendes, G. H. de S., Filho, M. G. Gouvea de Oliveira, M., & Ganga, G. M. D. (2022).
Digital transformation of business model in manufacturing companies: challenges and research agenda.
Journal of Business and Industrial Marketing, 37(4), 748–767.

Feliciano-Cestero, M.M.; Ameen, N.; Kotabe, M.; Paul, J.; Signoret, M. Is digital transformation
threatened? A systematic literature review of the factors influencing firms’ digital transformation and
internationalization. J. Bus. Res. 2023, 157, 113546.

Finkelstein S, Hambrick DC (1996) Strategic leadership: top executives and their effects on
organizations. West Publishing Company, St. Paul.

Fliess & Busqets, 2006. The Role of Trade Barriers in SME InternationalisationLu & Beamish, 2001.
The internationalization and performance of SMEs.

Fornell C., Larcker D.F. Evaluating Structural Equation Models with Unobservable Variables and
Measurement Error. J. Mark. Res. 1981;18:39–50. doi: 10.1177/002224378101800104.

Ganotakis, P. and Love, J.H. (2012) ‘Export propensity, export intensity and firm performance: The role
of the entrepreneurial founding team’, Journal of International Business Studies, 43(8), pp. 693–718.
Garcia et al., 2022. Surviving and Thriving: The Role of Internationalization, Digital Technology, and
Product Innovation for SMEs.

George Saridakis, Bochra Idris, Jared M. Hansen, Leo Paul Dana, SMEs's internationalisation: When
does innovation matter?

Golovko & Valentini, 2011; Exploring the complementarity between innovation and export for SMEs’
growth

Greer LL, Jehn KA, Mannix EA (2008) Conflict transformation: a longitudinal investigation of the
relationships between different types of intragroup conflict and the moderating role of conflict
resolution. Small Group Res 39:278–302.

Gutola Bokayo Roba, Mrva Milos, 2023. Digital Transformation of SMEs During the COVID-19
Pandemic.

Haenlein, M., & Kaplan, A. M. (2004). A Beginner's Guide to Partial Least Squares Analysis.
Understanding Statistics.

Hagen, B., Zucchella, A., & Ghauri, P. N. (2019). From fragile to agile: Marketing as a key driver of
entrepreneurial internationalization. International Marketing Review, 36(2), 260–288.

Hair J.F., Risher J.J., Sarstedt M., Ringle C.M. When to use and how to report the results of PLS-SEM.
Eur. Bus. Rev. 2019;31:2–24.

Hair, J. F., Sarstedt, M., & Ringle, C. M. (2019). Rethinking some of the rethinking of partial least
squares. European Journal of Marketing.

Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012a). The use of partial least squares
structural equation modeling in strategic management research: A review of past practices and
recommendations for future applications.

Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012b). An assessment of the use of partial least
squares structural equation modeling in marketing research. Journal of the Academy of Marketing
Science.

Hambrick DC (2007) Upper echelons theory: an update. Acad Manag Rev 32:334–343.
Hambrick DC, (1989). Guest editor’s introduction: putting top managers in the strategy picture. Strateg
Manag J 10:5–15.

Hambrick DC, (2007). Upper echelons theory: an update. Acad Manag Rev 32:334–343.

Hambrick DC, Cho TS, Chen M (1996). The influence of top management team heterogeneity on firm's
competitive moves. Adm Sci Q 41:659–684.

Hambrick DC, Mason PA (1984). Upper echelons: the organization as a reflection of its top managers.
Acad Manag Rev 9:293–296.

Hambrick, D. C. (2007). Upper Echelons Theory: An Update. Academy of Management Review, 32(2),
334–343.

Harrison DA, Price KH, Gavin JH, Florey AT (2002). Time, teams, and task performance: changing
effects of surface- and deep-level diversity on group functioning. Acad Manag J 45:1029–1045.

Harry G. Barkema, Oleg Shvyrkov, (2007). Does Top Management Team Diversity Promote or Hamper
Foreign Expansion?

Herrmann, P., & Datta, D. K. (2005). Relationships between Top Management Team Characteristics and
International Diversification: An Empirical Investigation*. British Journal of Management, 16(1),
69–78.

Herrmann, P., & Datta, D. K. (2006). CEO Experiences: Effects on the Choice of FDI Entry Mode.
Journal of Management Studies, 43(4), 755–778.

Hinterhuber, A., & Nilles, M. (2021). Digital transformation, the holy greail and the disruption of
business models. Business Horizons.

Huang, J. and Kisgen, D.J. (2013) ‘Gender and corporate finance: Are male executives overconfident
relative to female executives?’, Journal of Financial Economics, 108(3) North Holland, pp. 822–839.

Jafari-Sadeghi, V., Garcia-Perez, A., Candelo, E., & Couturier, J. (2021). Exploring the impact of digital
transformation on technology entrepreneurship and technological market expansion : The role of
technology readiness, exploration and exploitation. Journal of Business Research, 124(2021), 100–111.
Jean, R. J., & Kim, D. (2020). Internet and SMEs’ internationalization: The role of platform and
website. Journal of International Management, 26(1), Article 100690.

Jensen and Pedersen, 2021. Product Innovation and Internationalization: A Study of Small and
Medium-Sized Enterprises.

Johanson, J., & Vahlne, J.-E. (1977). The internationalization process of the firm: A model of knowledge
development and increasing market commitments. Journal of International Business Studies,
8(Spring/Summer), 23–32.

John Child, Joanna Karmowska , Oded Shenkar, (2022). The role of context in SME internationalization
- A review.

Johnson, J. E. (2004). Factors Influencing the Early Internationalization of High Technology Start-ups:
US and UK Evidence. Journal of International Entrepreneurship, 2(1/2), 139–154.

Jones et al., 2021. Leadership in SMEs: A Critical Review and Research Agenda.

Jöreskog, K. G., & Wold, H. (1982). The ML and PLS techniques for modeling with latent variables:
Historical and comparative aspects. In H. Wold & K. G. Jöreskog (Eds.), Systems under indirect
observation, part I (pp. 263–270). Amsterdam: North-Holland.

Jose Benitez, Yang Chen, Thompson S.H. Teo, Aseel Ajamieh, (2018). Evolution of the impact of
e-business technology on operational competence and firm profitability: A panel data investigation.

Khan, 2021. The Impact of Digital Innovation on SME Internationalization: A Systematic Literature
Review.

Kjellstrand, J.; Samar, O. Brand Building in Born Global Firms: The Role of Digitalization in Brand
Building in Young B2B Born Global Companies Internationalization; Digitala Vetenskapliga Arkivet:
Stockholm, Sweden, 2017.

Kotarba, M. (2018). Digital transformation of business models. Foundations of Management, 10(1),

123–142.

Krishnan, H.A. and Park, D. (2005) ‘A few good women—on top management teams’, Journal of
Business Research, 58(12) Elsevier, pp. 1712–1720.
Kyläheiko, Jantunen, Puumalainen, Saarenketo, and Tuppura (2011). Innovation and internationalization
as growth strategies: The role of technological capabilities and appropriability.

L¨ahteenm¨aki, I., N¨atti, S., & Saraniemi, S. (2022). Digitalization-enabled evolution of customer value
creation: An executive view in financial services. Journal of Business Research, 146(July 2021),
504–517.

Lachenmaier & Wößmann, 2006. Does innovation cause exports? Evidence from exogenous innovation
impulses and obstacles using German micro data.

Laužikas, M.; Miliute, A. Human resource management effects on sustainability of high-tech

companies: What Lithuania and South Korea can learn from each other. Insights Reg. Dev. 2020, 2,
562–579.

Lee, H.-U., & Park, J.-H. (2006). Top Team Diversity, Internationalization and the Mediating Effect of
International Alliances*. British Journal of Management, 17(3), 195–213.

Lee, J.Y.; Yang, Y.S.; Ghauri, P.N.; Park, B.I. The Impact of Social Media and Digital Platforms
Experience on SME International Orientation: The Moderating Role of COVID-19 Pandemic. J. Int.
Manag. 2022, 28, 100950.

Leppäaho, T.; Jack, S.L.; Plakoyiannaki, E. Network Mechanisms in the Entry and Post-Entry Phases of
Internationalization: Evidence from Finnish Family Firms. Br. J. Manag. 2022, 33, 1991–2008.

Li, 2020. Unlocking the Potential of Digital Innovation for SME Internationalization: A Dynamic
Capability Perspective.

Li, F. (2020). The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation, 92–93(January 2017), 102012.

Lindstrand, A., & Hånell, S. M. (2017). International and market-specific social capital effects on
international opportunity exploitation in the internationalization process. Journal of World Business,
52(5), 653–663.

Loane, S., & Bell, J. (2006). Rapid internationalization among entrepreneurial firms in Australia,
Canada, Ireland and New Zealand. International Marketing Review, 23(5), 467–485.
Love, Roper, & Zhou, 2016. Experience age and exporting performance in UK SMEs.

Magnusson, P., & Boggs, D. J. (2006). International experience and CEO selection: An empirical study.
Journal of International Management, 12(1), 107–125.

Manish Popli, Faisal M. Ahsan, Debmalya Mukherjee, (2022). Upper echelons and firm
internationalization: A critical review and future directions.

Martínez-Román & Romero, 2013. About the determinants of the degree of novelty in small businesses’
product innovations.

Masi and Napolitano, 2020. The Role of Digitalization in the Internationalization of SMEs: A Literature
Review and Research Agenda.

Milliken FJ, Martins LL (1996) Searching for common threads: understanding the multiple effects of
diversity in organizational groups. Acad Manag Rev 21:402–433.

Mokhtarzadeh, et al., 2020; Jafari Sadeghi, Dutta, Ferraris, & Del Giudice, 2020; Jafari-Sadeghi,
Kimiagari,& Biancone, 2020; Jafari-Sadeghi, Nkongolo-Bakenda, Dana, Anderson, & Biancone, 2020;
Sukumar et al., 2020.

Mozas-Moral, A., Moral-Pajares, E., Medina-Viruel, M. J., & Bernal-Jurado, E. (2016). Manager’s
educational background and ICT use as antecedents of export decisions: A crisp set QCA analysis.
Journal of Business Research, 69(4), 1333–1335.

Muhammad Anwar , Shaungjie Li, Ahmed Al-Omush and Munther Al-Nimer, (2023). SMEs’
Internationalizations: Mapping the Field through Finance, ITC, and Social Ties.

Neubert, M. The impact of digitalization on the speed of internationalization of lean global startups.
Technol. Innov. Manag. Rev. 2018, 8, 1–12.

Ong, X.; Freeman, S.; Goxe, F.; Guercini, S.; Cooper, B. Outsidership, network positions and
cooperation among internationalizing SMEs: An industry evolutionary perspective. Int. Bus. Rev. 2022,
31, 101970.

Oviatt, B. M., & McDougall, P. P. (2005a). Defining international entrepreneurship and modeling the
speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537–554.
Oviatt, B. M., & McDougall, P. P. (2005b). Toward a theory of international new ventures. Journal of
International Business Studies, 36(1), 29–41.

Oyvin Kyvik, Willem Saris, Eduard Bonet, J. Augusto Felício, (2013). The internationalization of small
firms: The relationship between the global mindset and firms’ internationalization behavior.

Patzelt H, zu Knyphausen-Aufse D, Nikol P (2008) Top management teams, business models, and
performance of biotechnology ventures: an upper echelon perspective. Br J Manag 19:205–221.

Petrenko, Y.; Vechkinzova, E.; Antonov, V. Transition from the industrial clusters to the smart
specialization of the regions in Kazakhstan. Insights Reg. Dev. 2019, 1, 118–128.

Pisani, N., Muller, A., & Bogatan, P. (2018). Top Management Team Internationalization and Firm-level
Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global
Focus. Journal of International Management, 24 (3), 239–256.

Pisani, Niccolò; Muller, Alan; Bogăan, Paula, (2018). Top Management Team Internationalization and
Firm-level Internationalization.

Pitcher P, Smith AD (2001) Top management team heterogeneity: personality, power, and proxies.
Organ Sci 12:1–18.

Pogodina, T.V.; Aleksakhina, V.G.; Burenin, V.A.; Polianova, T.N.; Yunusov, L.A. Towards the
innovation focused industry development in a climate of digitalization: The case of Russia. Entrep.
Sustain. Issues 2019, 6, 1897–1906.

Reim, W.; Yli-Viitala, P.; Arrasvuori, J.; Parida, V. Tackling business model challenges in SME
internationalization through digitalization. J. Innov. Knowl. 2022, 7, 100199.

Reuber, R. A., & Fischer, E. M. (1997). The influence of the management team’s international
experience on the internationalization behaviors of SMEs. Journal of International Business Studies,
28(4), 807–825.

Rezaei, M., Jafari-Sadeghi, V., & Bresciani, S. (2020). What Drives the Process of Knowledge
Management in a Cross-Cultural Setting: The Impact of Social Capital. European Business Review,
32(3), 485–511.
Rialp et al. 2021. Digitalization and Internationalization in SMEs: A Systematic Literature Review.

Roper & Love, 2002; Innovation and export performance: evidence from the UK and German
manufacturing plants

Rosanna Garcia, Roger Calantone, 2002. A critical look at technological innovation typology and
innovativeness terminology: a literature review.

Sambharya RB (1996) Foreign experience of top management teams and international diversification
strategies of U.S. multinational corporations. Strateg Manag J 17:739–746.

Sasa Ding, Frank McDonald & Yingqi Wei, Is Internationalization Beneficial to Innovation?

Selimovi´c,J., Pilav-Veli´c,A., & Krndˇzija, L. (2021). Digital workplace transformation in the financial
service sector: Investigating the relationship between employees’ expectations and intentions.
Technology in Society, 66(April).

Simons T, Pelled LH, Smith KA (1999) Making use of difference: diversity, debate, and decision
comprehensiveness in top management teams. Acad Manag J 42:662–673.

Singh, R.; Chandrashekar, D.; Hillemane, B.S.M.; Sukumar, A.; Jafari-Sadeghi, V. Network cooperation
and economic performance of SMEs: Direct and mediating impacts of innovation and
internationalization. J. Bus. Res. 2022, 148, 116–130.

Smith K, Smith K, Olian J, Sims H, O’Bannon D, Scully J (1994) Top management team demography
and process: the role of social integration and communication. Adm Sci Q 39:412–438.

Smith, J., Johnson, R., & Williams, M. (2021). “The Impact of Product Innovation on SME
Internationalization: Challenges and Opportunities." Journal of Small Business Management, 45(2),
123-136.

Sterlacchini, 1999. The determinants of export performance: A firm level study in Italian
Manufacturing.

Tien Dung Luu (2023). Leveraging digital transformation and agile slack to integrate team-level I-deals
with strategic agility for enhancing international performance.
Tihanyi, L., Ellstrand, A. E., Daily, C. M., & Dalton, D. R. (2000). Composition of the top management
team and firm international diversification. Journal of Management, 26 (6), 1157–1177.

Vahid Jafari-Sadeghi, Hannan Amoozad Mahdiraji, Stefano Bresciani, Anna Claudia Pellicelli, (2021).
Context-specific micro-foundations and successful SME internationalization in emerging markets: A
mixed-method analysis of managerial resources and dynamic capabilities.

Vallone, T.; Elia, S.; Greve, P.; Longoni, L.; Marinelli, D. Top Management Team Influence on Firms’
Internationalization Complexity. International Business in a VUCA World: The Changing Role of States
and Firms (Progress in International Business Research, Vol. 14); Emerald Publishing Limited: Bingley,
UK, 2019; pp. 199–226.

Vasilev, V.L.; Gapsalamov, A.R.; Akhmetshin, E.M.; Bochkareva, T.N.; Yumashev, A.V.; Anisimova,
T.I. Digitalization peculiarities of organizations: A case study. Entrep. Sustain. Issues 2020, 7,
3173–3190.

Verbeke, A., & Ciravegna, L. (2018). International entrepreneurship research versus international
business research: A false dichotomy? Journal of International Business Studies, 49(4), 387–394.

Wakelin, 1998. Innovation and export behavior at the firm level.

Wally, S., & Becerra, M. (2001). Top Management Team Characteristics and Strategic Changes in
International Diversification: The Case of U. S. Multinationals in the European Community. Group &
Organization Management, 26(2), 165–188.

Wang et al., 2022. Domestic and International Experience of Leaders: Implications for SME
Internationalization.

Wiersema MF, Bantel KA (1992) Top management team demography and corporate strategic change.
Acad Manag J 35:91–121.

Wrede, M., Velamuri, V. K., & Dauth, T. (2020). Top managers in the digital age: Exploring the role and
practices of top managers in firms’ digital transformation. Managerial and Decision Economics, 41(8),
1549–1567.
Wunderlich, N.; Beck, R. We’ve got the power—The relevance of leadership and organizational IT
capabilities in the fully digitalized business era. In Proceedings of the 25th European Conference on
Information Systems (ECIS 2017), Guimaraes, Portugal, 5 June 2017.

Xie & Li, 2013. Spotlight on the followers: An examination of moderators of relationships between
transformational leadership and subordinates' citizenship and taking charge.

Xinyu Huang, Hongquan Chen, Liangyan Wang, and Saixing Zeng, (2020). How Does Leader
Narcissism Influence Firm Internationalization?

Yama Temouri, Nigel Driffield, Dolores Añón Higón, 2010. German outward FDI and firm
performance.

Yu, H., Fletcher, M., & Buck, T. (2022). Managing digital transformation during reinternationalization:
Trajectories and implications for performance. Journal of International Management, 28(4), 100947.

Zahoor, N., Al-Tabbaa, O., Khan, Z., & Wood, G. (2020). Collaboration and internationalization of
SMEs: Insights and recommendations from a systematic review. International Journal of Management
Reviews, 22(4), 427–456.