The Role of Digital Transformation in Enhancing MSME Export Capacity: A Scoping Review in Developing Countries
Keywords:
MSMEs, Digital Transformation, Export Capacity, Developing Countries, Strategic Agility, Internationalisation, Innovation Capability
Abstract
Micro, Small, and Medium Enterprises (MSMEs) are 90% of global businesses today, making them a key driver of GDP and employment, especially in developing countries. It is important to know that MSMEs face a scarcity of resources that hinder international competitiveness. This study uses the scope review method to determine digital transformation (DT) as a catalyst to increase export capacity. This study explains how digital adoption enables MSMEs to navigate the global market. The main findings of this study suggest that DT serves as a major barrier to export reductions, especially during the COVID-19 pandemic. "Strategic Agility" and "Innovation Ability" are the mediating variables that transform digital literacy and government support into export performance. The policy recommendations are to emphasize the need for strong digital infrastructure and targeted structured training to encourage sustainable internationalization.
References
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Behl, A., Gaur, J., Pereira, V., Yadav, R., & Laker, B. (2022). Role of big data analytics capabilities to improve sustainable competitive advantage of MSME service firms during COVID-19 – A multi-theoretical approach. Journal of Business Research, 148, 378–389. https://doi.org/10.1016/j.jbusres.2022.05.009
Cam Thuy, N., Van Dat, L., Dong, D. P., Linh, V. T., & Thang, D. N. (2023). Is digital transformation a barrier to export reduction during COVID-19? The case of a developing country. Cogent Business & Management, 10(2), 2211218. https://doi.org/10.1080/23311975.2023.2211218
Cheratian, I., Goltabar, S., Gholipour, H. F., & Farzanegan, M. R. (2024). Finance and sales growth at the firms level in Iran: Does type of spending matter? Research in International Business and Finance, 67, 102142. https://doi.org/10.1016/j.ribaf.2023.102142
Chopra, R., Bhardwaj, S., Baber, H., & Idris Sanusi, O. (2024). Navigating global horizons: A review of export promotion and foreign market entry strategies for small and medium enterprises (SMEs). Journal of Business & Industrial Marketing, 39(12), 2774–2790. https://doi.org/10.1108/JBIM-10-2023-0610
Clemente-Almendros, J. A., Pelaez, A. D., Quispe, G. C., & Velarde Molina, J. F. (2025). Emerging countries could be different for MSMES: Digitalization and the mediation effects of innovation confronted to environmental practices. International Journal of Innovation Studies, 9(4), 354–365. https://doi.org/10.1016/j.ijis.2025.08.001
Deshmukh, D., Rajput, C. S., & Yadav, S. (2026a). Forging futures: A SWOT-driven sustainability appraisal of small-scale Dhokra metal-casting enterprises in Kondagaon of Chhattisgarh. Discover Global Society, 4(1), 9. https://doi.org/10.1007/s44282-025-00236-y
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Lestari, Y. B. (2024). Prospects and challenges in establishing entrepreneurship in post COVID-19 language and culture-related tourist attractions. Journal of Infrastructure Policy and Development, 8(9). https://doi.org/10.24294/jipd.v8i9.5001
Li, J., Kobakhidze, M. N., & Tian, R. (2025). Guanxi Practice Through Sensemaking: An Exploration of Private Tutoring Entrepreneurship in Chongqing, China and Its Policy Implications. European Journal of Education, 60(3), e70184. https://doi.org/10.1111/ejed.70184
Liu, G., Zhang, S. X., Ko, W. W., Jahanshahi, A. A., Chen, Y., & John, J. (2025). Causation processes and innovation strategy in small- and medium-sized firms in emerging countries: The moderating role of founder-CEOs’ human capital. Technological Forecasting and Social Change, 212, 123954. https://doi.org/10.1016/j.techfore.2024.123954
Marinelli, L., Crupi, A., Del Sarto, N., & Lepore, D. (2024). Unveiling knowledge ecosystem dimensions for MSMEs’ digital transformation, toward a location-based brokerage. Technovation, 136, 103086. https://doi.org/10.1016/j.technovation.2024.103086
Meiryani. (2024). Risk management of small and medium-sized enterprises (SMEs) for upcoming research priorities. Managerial Finance, 50(9), 1578–1597. https://doi.org/10.1108/MF-07-2023-0459
Mukherjee, S. (2018). Challenges to Indian micro small scale and medium enterprises in the era of globalization. Journal of Global Entrepreneurship Research, 8(1), 28. https://doi.org/10.1186/s40497-018-0115-5
Mulchandani, K., Jasrotia, S. S., & Mulchandani, K. (2023). Determining supply chain effectiveness for Indian MSMEs: A structural equation modelling approach. Asia Pacific Management Review, 28(2), 90–98. https://doi.org/10.1016/j.apmrv.2022.04.001
Nagy, A. S., Arie, F. V., Tuegeh, O. D. M., Bittner, B., & Tumiwa, J. R. (2025). Fintech adoption for SMEs in different socioeconomic contexts: Evidence from Hungary and Indonesia. Financial Innovation, 11(1), 131. https://doi.org/10.1186/s40854-025-00876-8
Nguyen, V.-T., Huang, C.-H., Liu, S.-T., & Lin, C.-Y. (2026). Unveiling the competitiveness of non-resource enterprises in a resource-rich country: A qualitative case study of Brunei. Asia Pacific Management Review, 31(1), 100389. https://doi.org/10.1016/j.apmrv.2025.100389
Pelletier, C., L’Écuyer, F., & Raymond, L. (2025). Building organizational agility through digital transformation: A configurational approach in SMEs. Industrial Management & Data Systems, 125(4), 1503–1529. https://doi.org/10.1108/IMDS-05-2024-0488
Raj, R., Kumar, V., Sharma, N. K., & Verma, P. (2024). Industry 4.0 readiness: The impact of effective implementation of I4.0 on marketing performance. Journal of Business & Industrial Marketing, 39(10), 2140–2154. https://doi.org/10.1108/JBIM-05-2023-0289
Samputra, P. L., & Alfarizi, M. (2025). Can advanced society 5.0 technology create economic and social value for millennial and generation Z MSMEs in Surabaya, Indonesia? An economic resilience perspective. Asia Pacific Management Review, 30(3), 100355. https://doi.org/10.1016/j.apmrv.2025.100355
Soliman, S., Papanastassiou, M., & Saka-Helmhout, A. (2023). The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration. Journal of International Management, 29(2), 101003. https://doi.org/10.1016/j.intman.2022.101003
Susanti, E., Mulyanti, R. Y., & Wati, L. N. (2023). MSMEs performance and competitive advantage: Evidence from women’s MSMEs in Indonesia. Cogent Business & Management, 10(2), 2239423. https://doi.org/10.1080/23311975.2023.2239423
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Tang, K., Cai, X., & Wang, H. (2025). Innovation capacity in urban agglomerations: The role of digital finance. Journal of Innovation & Knowledge, 10(3), 100697. https://doi.org/10.1016/j.jik.2025.100697
Tomás, G.-C., José-Antonio, C.-A., Julennys-Carolina, C.-M., & Alejandro, D.-P. (2025). Linking environmental sustainability, digital transformation, and innovation: Evidence from micro-enterprises and SMEs. Journal of Innovation & Knowledge, 10(6), 100849. https://doi.org/10.1016/j.jik.2025.100849
Ulupui, I. G. K. A., Zairin, G. M., Musyaffi, A. M., & Sutanti, F. D. (2024). Navigating uncertainties: A tri-factorial evaluation of risk management adoption in MSMEs. Cogent Business & Management, 11(1), 2311161. https://doi.org/10.1080/23311975.2024.2311161
Vu, O. T. K., Duarte Alonso, A., Velasquez, S., Buitrago Solis, M. A., Carrillo, B., Nayak, N. P., Nguyen, C. T., Caceres Gutierrez, J. P., Gonzalez Alandia, B. E., Nguyen, N. M., & Tran, L. N. (2026). MSMEs’ internationalisation processes in a dynamic industry environment: A qualitative cross-national study among emerging economies. Business Process Management Journal, 32(8), 28–51. https://doi.org/10.1108/BPMJ-11-2025-1844
Wang, J., Shi, Y., Jiang, X., & Venkatesh, V. G. (2026). How does artificial intelligence capacity enhance the production system resilience and operational performance? A human-organization-technology fit perspective. International Journal of Information Management, 87, 103023. https://doi.org/10.1016/j.ijinfomgt.2025.103023
Wang, M., & Dai, J. (2025). Research on the application of artificial intelligence in the field of enterprise financial management and strategic decision-making. Edelweiss Applied Science and Technology, 9(3), 545–551. https://doi.org/10.55214/25768484.v9i3.5253
Wulandari, P., Sulung, L. A. K., Yuliati, E., Chalid, D. A., & Kassim, S. (2025). Rational vs religious: Which is more important for ultramicro SMEs when dealing with financial institutions? Journal of Islamic Marketing, ahead-of-print(ahead-of-print). (world). https://doi.org/10.1108/JIMA-05-2024-0194
Wulandari, S. S., Maula, F. I., Pahlevi, T., Hakim, L., Handayani, S., Rahmawati, F., Muhlisin, & Zulkifli, M. F. B. (2026). Determinants of digitalized MSME competitiveness in improving export capacity to achieve sustainable development goals (SDGs). Cogent Business & Management, 13(1), 2598929. https://doi.org/10.1080/23311975.2025.2598929
Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105, 502–514. https://doi.org/10.1016/j.indmarman.2022.07.006
Zaimovic, A., Omanovic, A., Dedovic, L., & Zaimovic, T. (2025). The effect of business experience on fintech behavioural adoption among MSME managers: The mediating role of digital financial literacy and its components. Future Business Journal, 11(1), 26. https://doi.org/10.1186/s43093-025-00432-x
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Amado Mateus, M., Guzmán Rincón, A., & Cuero Acosta, Y. A. (2024). Influence of reputation, innovation, and knowledge on the performance of MSMEs in the orange economy sector. Cogent Business & Management, 11(1), 2388227. https://doi.org/10.1080/23311975.2024.2388227
Battisti, S., Agarwal, N., & Brem, A. (2022). Creating new tech entrepreneurs with digital platforms: Meta-organizations for shared value in data-driven retail ecosystems. Technological Forecasting and Social …, (Query date: 2025-02-20 18:56:06). https://www.sciencedirect.com/science/article/pii/S0040162521008234
Behl, A., Gaur, J., Pereira, V., Yadav, R., & Laker, B. (2022). Role of big data analytics capabilities to improve sustainable competitive advantage of MSME service firms during COVID-19 – A multi-theoretical approach. Journal of Business Research, 148, 378–389. https://doi.org/10.1016/j.jbusres.2022.05.009
Cam Thuy, N., Van Dat, L., Dong, D. P., Linh, V. T., & Thang, D. N. (2023). Is digital transformation a barrier to export reduction during COVID-19? The case of a developing country. Cogent Business & Management, 10(2), 2211218. https://doi.org/10.1080/23311975.2023.2211218
Cheratian, I., Goltabar, S., Gholipour, H. F., & Farzanegan, M. R. (2024). Finance and sales growth at the firms level in Iran: Does type of spending matter? Research in International Business and Finance, 67, 102142. https://doi.org/10.1016/j.ribaf.2023.102142
Chopra, R., Bhardwaj, S., Baber, H., & Idris Sanusi, O. (2024). Navigating global horizons: A review of export promotion and foreign market entry strategies for small and medium enterprises (SMEs). Journal of Business & Industrial Marketing, 39(12), 2774–2790. https://doi.org/10.1108/JBIM-10-2023-0610
Clemente-Almendros, J. A., Pelaez, A. D., Quispe, G. C., & Velarde Molina, J. F. (2025). Emerging countries could be different for MSMES: Digitalization and the mediation effects of innovation confronted to environmental practices. International Journal of Innovation Studies, 9(4), 354–365. https://doi.org/10.1016/j.ijis.2025.08.001
Deshmukh, D., Rajput, C. S., & Yadav, S. (2026a). Forging futures: A SWOT-driven sustainability appraisal of small-scale Dhokra metal-casting enterprises in Kondagaon of Chhattisgarh. Discover Global Society, 4(1), 9. https://doi.org/10.1007/s44282-025-00236-y
Deshmukh, D., Rajput, C. S., & Yadav, S. (2026b). Forging futures: A SWOT-driven sustainability appraisal of small-scale Dhokra metal-casting enterprises in Kondagaon of Chhattisgarh. Discover Global Society, 4(1), 9. https://doi.org/10.1007/s44282-025-00236-y
Fahrudi, A. N. L. I., Hutahayan, B., Sthapit, E., Nuralam, I. P., & Yuliaji, E. S. (2026). Towards a better understanding of business competitiveness: Micro, small, and medium enterprises context. Strategic Business Research, 2(1), 100036. https://doi.org/10.1016/j.sbr.2025.100036
Faiz, F., Le, V., & Masli, E. K. (2024). Determinants of digital technology adoption in innovative SMEs. Journal of Innovation & Knowledge, 9(4), 100610. https://doi.org/10.1016/j.jik.2024.100610
Gupta, H., Lawal, J. N., Orji, I. J., & Kusi-Sarpong, S. (2023). Closing the Gap: The Role of Distributed Manufacturing Systems for Overcoming the Barriers to Manufacturing Sustainability. IEEE Transactions on Engineering Management, 70(5), 1754–1773. https://doi.org/10.1109/TEM.2021.3059231
Gutiérrez Navas, E. B., Sarmiento Suarez, J. E., Ramírez Montañez, J., & Rincón Quintero, Y. A. (2025). Determining factors for the digitization of micro, small, and medium-sized enterprises (MSMEs) in Ibero-America. Journal of Innovation & Knowledge, 10(1), 100631. https://doi.org/10.1016/j.jik.2024.100631
Hasibuan, W. S., & Lubis, I. (2024). Halal value chain integration in food court establishment through Cash Waqf Linked Sukuk: Evidence from Indonesia. Cogent Business & Management, 11(1), 2385075. https://doi.org/10.1080/23311975.2024.2385075
Karim, M. F., Rahutomo, R., Manuaba, I. B. K., Purwandari, K., Mursitama, T. N., & Pardamean, B. (2023). Free trade as domestic, economic, and strategic issues: A big data analytics approach. Journal of Big Data, 10(1), 44. https://doi.org/10.1186/s40537-023-00722-7
Kumarasamy, D., Singh, P., & Sharma, A. K. (2024). Financial accessibility and MSME’s labour productivity: Evidence from developing countries. Indian Growth and Development Review, 17(2), 186–206. https://doi.org/10.1108/IGDR-08-2023-0115
Lestari, E. P., Handoyo, R. D., Ibrahim, K. H., Retnaningsih, T. K., Pradinda, E. L., Sarmidi, T., Rahmawati, Y., Kusumawardani, D., Haryanto, T., & Erlando, A. (2024). Small and medium industry export development strategy. Cogent Business & Management, 11(1), 2338882. https://doi.org/10.1080/23311975.2024.2338882
Lestari, Y. B. (2024). Prospects and challenges in establishing entrepreneurship in post COVID-19 language and culture-related tourist attractions. Journal of Infrastructure Policy and Development, 8(9). https://doi.org/10.24294/jipd.v8i9.5001
Li, J., Kobakhidze, M. N., & Tian, R. (2025). Guanxi Practice Through Sensemaking: An Exploration of Private Tutoring Entrepreneurship in Chongqing, China and Its Policy Implications. European Journal of Education, 60(3), e70184. https://doi.org/10.1111/ejed.70184
Liu, G., Zhang, S. X., Ko, W. W., Jahanshahi, A. A., Chen, Y., & John, J. (2025). Causation processes and innovation strategy in small- and medium-sized firms in emerging countries: The moderating role of founder-CEOs’ human capital. Technological Forecasting and Social Change, 212, 123954. https://doi.org/10.1016/j.techfore.2024.123954
Marinelli, L., Crupi, A., Del Sarto, N., & Lepore, D. (2024). Unveiling knowledge ecosystem dimensions for MSMEs’ digital transformation, toward a location-based brokerage. Technovation, 136, 103086. https://doi.org/10.1016/j.technovation.2024.103086
Meiryani. (2024). Risk management of small and medium-sized enterprises (SMEs) for upcoming research priorities. Managerial Finance, 50(9), 1578–1597. https://doi.org/10.1108/MF-07-2023-0459
Mukherjee, S. (2018). Challenges to Indian micro small scale and medium enterprises in the era of globalization. Journal of Global Entrepreneurship Research, 8(1), 28. https://doi.org/10.1186/s40497-018-0115-5
Mulchandani, K., Jasrotia, S. S., & Mulchandani, K. (2023). Determining supply chain effectiveness for Indian MSMEs: A structural equation modelling approach. Asia Pacific Management Review, 28(2), 90–98. https://doi.org/10.1016/j.apmrv.2022.04.001
Nagy, A. S., Arie, F. V., Tuegeh, O. D. M., Bittner, B., & Tumiwa, J. R. (2025). Fintech adoption for SMEs in different socioeconomic contexts: Evidence from Hungary and Indonesia. Financial Innovation, 11(1), 131. https://doi.org/10.1186/s40854-025-00876-8
Nguyen, V.-T., Huang, C.-H., Liu, S.-T., & Lin, C.-Y. (2026). Unveiling the competitiveness of non-resource enterprises in a resource-rich country: A qualitative case study of Brunei. Asia Pacific Management Review, 31(1), 100389. https://doi.org/10.1016/j.apmrv.2025.100389
Pelletier, C., L’Écuyer, F., & Raymond, L. (2025). Building organizational agility through digital transformation: A configurational approach in SMEs. Industrial Management & Data Systems, 125(4), 1503–1529. https://doi.org/10.1108/IMDS-05-2024-0488
Raj, R., Kumar, V., Sharma, N. K., & Verma, P. (2024). Industry 4.0 readiness: The impact of effective implementation of I4.0 on marketing performance. Journal of Business & Industrial Marketing, 39(10), 2140–2154. https://doi.org/10.1108/JBIM-05-2023-0289
Samputra, P. L., & Alfarizi, M. (2025). Can advanced society 5.0 technology create economic and social value for millennial and generation Z MSMEs in Surabaya, Indonesia? An economic resilience perspective. Asia Pacific Management Review, 30(3), 100355. https://doi.org/10.1016/j.apmrv.2025.100355
Soliman, S., Papanastassiou, M., & Saka-Helmhout, A. (2023). The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration. Journal of International Management, 29(2), 101003. https://doi.org/10.1016/j.intman.2022.101003
Susanti, E., Mulyanti, R. Y., & Wati, L. N. (2023). MSMEs performance and competitive advantage: Evidence from women’s MSMEs in Indonesia. Cogent Business & Management, 10(2), 2239423. https://doi.org/10.1080/23311975.2023.2239423
Susanty, A., Puspitasari, N. B., & Rosyada, Z. F. (2024). Prediction of the performance of halal food industry using a system dynamics simulation model. Journal of Islamic Marketing, 15(11), 2785–2822. https://doi.org/10.1108/JIMA-02-2023-0039
Tang, K., Cai, X., & Wang, H. (2025). Innovation capacity in urban agglomerations: The role of digital finance. Journal of Innovation & Knowledge, 10(3), 100697. https://doi.org/10.1016/j.jik.2025.100697
Tomás, G.-C., José-Antonio, C.-A., Julennys-Carolina, C.-M., & Alejandro, D.-P. (2025). Linking environmental sustainability, digital transformation, and innovation: Evidence from micro-enterprises and SMEs. Journal of Innovation & Knowledge, 10(6), 100849. https://doi.org/10.1016/j.jik.2025.100849
Ulupui, I. G. K. A., Zairin, G. M., Musyaffi, A. M., & Sutanti, F. D. (2024). Navigating uncertainties: A tri-factorial evaluation of risk management adoption in MSMEs. Cogent Business & Management, 11(1), 2311161. https://doi.org/10.1080/23311975.2024.2311161
Vu, O. T. K., Duarte Alonso, A., Velasquez, S., Buitrago Solis, M. A., Carrillo, B., Nayak, N. P., Nguyen, C. T., Caceres Gutierrez, J. P., Gonzalez Alandia, B. E., Nguyen, N. M., & Tran, L. N. (2026). MSMEs’ internationalisation processes in a dynamic industry environment: A qualitative cross-national study among emerging economies. Business Process Management Journal, 32(8), 28–51. https://doi.org/10.1108/BPMJ-11-2025-1844
Wang, J., Shi, Y., Jiang, X., & Venkatesh, V. G. (2026). How does artificial intelligence capacity enhance the production system resilience and operational performance? A human-organization-technology fit perspective. International Journal of Information Management, 87, 103023. https://doi.org/10.1016/j.ijinfomgt.2025.103023
Wang, M., & Dai, J. (2025). Research on the application of artificial intelligence in the field of enterprise financial management and strategic decision-making. Edelweiss Applied Science and Technology, 9(3), 545–551. https://doi.org/10.55214/25768484.v9i3.5253
Wulandari, P., Sulung, L. A. K., Yuliati, E., Chalid, D. A., & Kassim, S. (2025). Rational vs religious: Which is more important for ultramicro SMEs when dealing with financial institutions? Journal of Islamic Marketing, ahead-of-print(ahead-of-print). (world). https://doi.org/10.1108/JIMA-05-2024-0194
Wulandari, S. S., Maula, F. I., Pahlevi, T., Hakim, L., Handayani, S., Rahmawati, F., Muhlisin, & Zulkifli, M. F. B. (2026). Determinants of digitalized MSME competitiveness in improving export capacity to achieve sustainable development goals (SDGs). Cogent Business & Management, 13(1), 2598929. https://doi.org/10.1080/23311975.2025.2598929
Zahoor, N., Golgeci, I., Haapanen, L., Ali, I., & Arslan, A. (2022). The role of dynamic capabilities and strategic agility of B2B high-tech small and medium-sized enterprises during COVID-19 pandemic: Exploratory case studies from Finland. Industrial Marketing Management, 105, 502–514. https://doi.org/10.1016/j.indmarman.2022.07.006
Zaimovic, A., Omanovic, A., Dedovic, L., & Zaimovic, T. (2025). The effect of business experience on fintech behavioural adoption among MSME managers: The mediating role of digital financial literacy and its components. Future Business Journal, 11(1), 26. https://doi.org/10.1186/s43093-025-00432-x
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Published
2026-04-21
How to Cite
Yogatama, A. N., Sudarmiatin, & Pratikto, H. (2026). The Role of Digital Transformation in Enhancing MSME Export Capacity: A Scoping Review in Developing Countries. International Journal of Economics, Business and Innovation Research, 5(03), 519-539. https://doi.org/10.63922/ijebir.v5i03.3212
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