ABSTRACT
This chapter emphasises the necessity of small- and medium-sized enterprises (SMEs) to rely on internal resources when entering foreign markets via both online and offline modes. Critical synthesis of the literature applied in this study revealed that the competences key to SME digital internationalisation can be broadly divided into two categories – digital capabilities and traditional capabilities – and can be observed at two levels – firm level and individual level. The chapter demonstrates that among digital capabilities antecedent to digital internationalisation researchers distinguish, inter alia, digital synchronisation capabilities, virtual networking, international digital competence of SME manager. Highlighting that digital capabilities are conductive of both accelerated digital internationalisation and improved international performance. Additionally, it shows that the most vital traditional capability, that positively influences offline as well as online internationalisation, is the entrepreneurial orientation (EO), which pushes companies to adapt their business models to a fast-paced, increasingly technology-driven world and thereby secure international growth. Finally, the analysis underscores that combining traditional capabilities set with capabilities that emerged with the rise of digital technologies supported by the EO, SMEs can shape new value propositions in the process of digital internationalisation.
