Internationalization Periodization Of Indonesian Msmes: Historical Approach And Global Strategy Transformation
Keywords:
MSMEs; internationalization; digitalization; global value chain; dynamic capabilities; emerging economy; Indonesia
Abstract
Understanding how small enterprises from emerging economies navigate their way into global markets remains one of the more compelling puzzles in international business scholarship. This study takes up that challenge by tracing the internationalization journey of Indonesian Micro, Small, and Medium Enterprises (MSMEs) through a historical periodization lens mapping not just where MSMEs are today, but how they got there and what forces shaped each transition along the way. Drawing on a Systematic Qualitative Literature Review (SQLR) of sources indexed in Scopus, Web of Science, and authoritative institutional databases spanning 1990 to 2025, this study constructs a four period analytical framework: (1) the preinternationalization era (pre-2000), characterized by domestically confined subsistence economies; (2) the early globalization phase (2000–2010), marked by initial export policy frameworks and ASEAN Free Trade Area integration; (3) the digitalization and strategic transformation phase (2010–2020), driven by e-commerce platform proliferation and the Making Indonesia 4.0 agenda; and (4) the global acceleration and digital integration phase (2020–present), catalyzed by COVID-19 induced digital adoption and RCEP ratification. Empirical data confirm that Indonesia's 65.47 million MSMEs now generate 61.97% of GDP and absorb 97.22% of national employment, yet only 5.2% are currently engaged in international trade a gap that reveals both the scale of the opportunity and the depth of the structural barriers remaining. Theoretically, the study integrates the Uppsala Model, Network Theory, Resource-Based View, Dynamic Capabilities Framework, and Institutional Theory to interpret the mechanisms behind each transitional period. The findings contribute a novel 'digital democratization of internationalization' thesis, demonstrating that platform-mediated trade has fundamentally restructured the economics of MSME global market entry in ways that existing frameworks only partially capture. Implications are drawn for policymakers, development agencies, and MSME practitioners committed to accelerating Indonesia's sustainable global integration.
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Published
2026-05-07
How to Cite
Hamdani, Sudarmiatin, & Heri Pratikto. (2026). Internationalization Periodization Of Indonesian Msmes: Historical Approach And Global Strategy Transformation. International Journal of Economics, Business and Innovation Research, 5(03), 1539-1567. https://doi.org/10.63922/ijebir.v5i03.3322
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