Digital Transformation in the Internationalization of Beverage MSMEs in East Java: Perspectives of the Uppsala Model, Born Global Theory, and Resource-Based View

Dedi Joko Hermawan; Sudarmiatin; Heri Pratikto

doi:10.63922/ijebir.v5i03.3238

Dedi Joko Hermawan Faculty of Economics and Business, Universitas Negeri Malang
Sudarmiatin Faculty of Economics and Business, Universitas Negeri Malang
Heri Pratikto Doctoral Program in Management Sciences, Faculty of Economics and Business, Universitas Negeri Malang.

DOI: https://doi.org/10.63922/ijebir.v5i03.3238

Keywords: beverage MSMEs, digital transformation, internationalization, Born Global, Uppsala Model, Resource-Based View, East Java

Abstract

This study examines the role of digital transformation in advancing the internationalization of beverage MSMEs in East Java Province. East Java is one of Indonesia's provinces with the largest MSME base, comprising more than 9.7 million business units that contribute approximately 57.5% to regional GDP. Nevertheless, active participation of beverage MSMEs in export activities remains severely limited, accounting for less than 5% of East Java's total food and beverage export value. This study employs a descriptive qualitative approach with a multiple case study method involving 150 respondents from beverage MSME operators across five major cities and regencies Surabaya, Malang, Sidoarjo, Batu, and Gresik. Data were collected through semi structured interviews, questionnaires, and documentation. The study integrates three primary theoretical frameworks: the Uppsala Model, which emphasizes knowledge based incremental internationalization; Born Global Theory, which accounts for the acceleration of global market entry through digital technology; and the Resource-Based View (RBV), which underscores the role of dynamic capabilities and digital assets as sources of competitive advantage. Findings reveal that the principal barriers include low digital literacy, limited global branding capacity, a weak export logistics ecosystem, and insufficient international social capital. Effective strategies encompass the adoption of cross border e-commerce platforms (Shopee International, Amazon, Lazada), strengthening multilingual social media content, and collaboration with digital export aggregators. This study recommends a synergistic policy approach among government, academia, and industry stakeholders to build an inclusive digital export ecosystem for East Java's beverage MSMEs.

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