By providing a practical and theoretical framework on the role of digitalization in business model innovation (BMI) and countermeasures liabilities of foreignness (LoF), we aim to…
Abstract
Purpose
By providing a practical and theoretical framework on the role of digitalization in business model innovation (BMI) and countermeasures liabilities of foreignness (LoF), we aim to provide small and medium-sized enterprises (SMEs) from emerging markets with the means to confront the reality of de-internationalization.
Design/methodology/approach
A quantitative design emphasizing mature theory design and collecting survey data from 210 SMEs in an emerging market. The data are analyzed using a confirmatory factor analysis (CFA) based on covariance-based SEM (CB-SEM), multiple regression analysis (MRA) and Hayes' process model.
Findings
Digitalization was revealed to significantly and indirectly negatively affect SMEs’ de-internationalization via BMI. Besides, the conditional indirect effect of digitalization on de-internationalization through BMI is more robust and exists at the high LoF of SMEs.
Originality/value
We advise SMEs with a distinctive and relatively comprehensive strategy for coping with the pressures of de-internationalization or having their internationalization schedules perpetually altered through the lens of the resource-based view and institution theory.