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This study aims to contribute to an acceleration of small and medium enterprises (SME) internationalization by identifying key determinants of their competitive advantages for internationalization. Resource-based theory (Barney, 1991; Barney et al., 2011) is often used to explain the determinants of international performance (Cavusgil and Knight, 2015; Øyna and Alon, 2018). However, little is known about the resources and capabilities that lead to Malaysian SMEs’ competitive advantages in international markets (Falahat et al., 2013; Falahat et al., 2018). In addition to resources and capabilities, international entrepreneurship scholars are also showing increased interest to explore the role of digitalization in SME internationalization through studies of digital platform firms (Ojala et al. 2018; Stallkamp & Schotter 2018), internet-based companies (Wittkop et al., 2018), ibusiness firms (Brouthers et al., 2018), and high-tech startups (Neubert 2017 & 2018). While resources and capabilities are fundamental prerequisites for international research exploration, the concepts existed prior to the emergence of digital era (Coviello, Kano, and Liesch 2017; Wittkop et al. 2018). To date, the interaction between digitalization and these fundamental prerequisites has not been sufficiently validated with quantitative evidence (Coviello et al., 2017; Strange & Zucchella, 2017; Watson et al., 2018). Despite earlier studies that acknowledge the needs for integrating digitalization with a strategic internationalization model, most studies are still qualitative in nature. More quantitative evidence is therefore needed to demonstrate the role of digitalization in SME internationalization studies (Coviello et al., 2017; Knight & Liesch, 2016; Neubert, 2018; Ojala et al., 2018).

technology innovation management review

The Impact of Digitalization and Resources on Gaining Competitive Advantage in International Markets: Mediating Role of Marketing, Innovation and Learning Capabilities