Climbing the global value chain: the role of cross-border e-commerce in SME internationalization

Participation in the global value chain is crucial for integrating small and medium enterprises (SMEs) into the global economy. However, participation alone does not guarantee success. Other factors may catalyze true internationalization. The digital economy and advancements in information and communication technologies have enabled SMEs to remain competitive. By leveraging digital technologies like cross-border e-commerce (CBEC), SMEs can overcome stagnation at the lower end of the value chain and enhance international market performance. Compared with traditional entry modes, CBEC offers high control and low costs, making it an effective tool for overcoming barriers to internationalization. To investigate how CBEC aids SMEs in ascending global value chains, we developed hypotheses based on organizational learning theory and tested them on a panel dataset of 781 SMEs. Regression analysis results indicate that engaging in CBEC significantly improves an SME's position in the global value chain. We also identified two mediating factors: the firm's entrepreneurial orientation and its ability to reconfigure value chains. These findings underscore the role of CBEC in enhancing the global value of SMEs, offering valuable insights for academics and SME managers alike.