The impact of innovation and digitalization on the international performance of SMEs
Abstract
Purpose – The research identifies the causal pathways between SMEs’ innovation, digitalization and
international performance of SMEs. It particularly explores the determinant of innovation and digitalization
within Lebanese SMEs.
Design/methodology/approach – This research employed the SEM (structural equational modelling) technique
to explore the links between innovation, digitalization and international performance of Lebanese SMEs.
Findings – Based on a sample of 208 SME executives, the results of SEM (structural equational modeling)
reveal that digitalization is a key success factor of international development of SMEs. The results also show that digitalization boosts innovation namely in small firms; however, innovation does not significantly influence
digitalization. Finally, the study confirms that SMEs’ internal innovation capabilities along with a favorable
internal business environment are the determinants of their innovation.
Originality/value – This research advances knowledge in essential areas of digitalization, innovation and the
organizational dynamics of SMEs, especially to the much under-researched organizational typology of SMEs
operating in ambiguous and resource-constrained contexts; offering novel and valuable elucidations, as well as
avenues for further research and implications to industry and governance.
Journal/Conference Information
EuroMed Journal of Business,DOI: https://www.emerald.com/insight/content/doi/10.1108/emjb-01-2025-0011/full/html, ISSN: 1450-2194, Volume: 20, Issue: 6, Pages Range: 1-17,