DIGITAL TRANSFORMATIONS SHAPING SME INTERNATIONALIZATION - SERBIAN CASE

Abstract

The challenges of achieving sustainable development for SMEs in the digital era highlight the need to address both technological and strategic aspects of growth. Recognizing this, the authors reviewed literature and policies, focusing on how firm digitalization and internationalization within Serbia's digital ecosystem can drive innovation in operations, products, and market communication to support SME internationalization. Given that SMEs constitute 99% of Serbia’s enterprises, their sustainable development is crucial. To investigate this, data were gathered from 417 small and medium-sized enterprise executives online between March and June 2024, supported by the Association of Employers of Serbia. The study analyzed 18 predefined statements using a quintile rating scale and utilized correlation methods to evaluate the impact of digitalization, the digital ecosystem, and internationalization. Key findings reveal that SME digitization (R² = 0.6658) and digital ecosystem factors (R² = 0.2292) exert considerable influence on internationalization. However, the effectiveness of national regulations is constrained by issues in implementation and enforcement. These insights emphasize the importance of embedding digital technologies into SMEs' innovation policies and international strategies to enhance their competitiveness in global markets. This work enriches the academic field by drawing attention to areas for improvement, such as niche marketing, global-born strategies, and digital framework policies, which are essential for strengthening SME export performance. It also advances theoretical discussions on corporate activism, social narratives, and disruptive technologies while addressing gaps in SME internationalization strategies.