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Due to today’s increasingly competitive global market environment, business model scalability and internationalization have become a necessity for small and medium sized enterprises (SMEs) (Durmaz & Ilhan, 2015). “Scalability” refers to a SME’s ability to grow quickly without being hindered by constraints imposed upon its business model structure (Lund & Nielsen, 2018; Monteiro, 2019). In particular, SMEs seeking growth need to consider early and rapid internationalization as many national markets are not only highly competitive, but also too small, mature, and isolated for lucrative growth (Freeman et al., 2005; Taylor & Jack, 2011). Although Abdi and Aulakh (2018) submit that SMEs can derive scaling benefits from expansion both within their national market and across national boundaries, the latter is likely to provide them with more benefits. By expanding across borders, they can gain access to new markets, achieve economies of scale and scope, engage in beneficial learning opportunities, and utilize low-cost factor inputs (Kim & Aguilera, 2015), all relevant aspects in business model scaling. Further, Abdi and Aulakh (2018) note that internationalization augments a SME’s scale of operations, which is a key determinant of performance.

Digitalization, Internationalization and Scaling of Online SMEs