THE INFLUENCE OF DIGITAL TECHNOLOGIES ON THE INTERNATIONALIZATION OF SMEs
Keywords:
digitization, internationalization, SMEsAbstract
This paper deals with the impact of digitalization on the process of internationalization of SMEs. Digitization is a process that has been intensively changing the business environment in which companies operate for more than 20 years. Digitization appeared very shyly after the ’90s, until 2005 almost all companies, and especially leading companies, recorded large losses on their accounts as a result of the implementation of the international e-commerce platform. However, after 2005, the situation changed drastically at the expense of such companies at the expense of companies that did not introduce such international digital platforms.
The paper investigates the theoretical attitudes in relation to digitalization and its impact on the internationalization of companies. Today, the current digitalization of SMEs is a process for inclusion in the leading trends of business change as well as in their internationalization.
Digitization as a process is the only chance for SMEs to be internationalized because it is currently very cheap to implement, secure and has no high maintenance costs. This does not mean that it is an insignificant investment, but for very small investments it gives a chance for fast internationalization. Given the expansion of digitalisation, it may be the only chance for internationalization, and perhaps the survival of many SMEs.
Digitalization, which is constantly on the rise, is influencing a change in the business environment. It has especially come to the surface with the COVID 19 crisis that has been affecting the global and local economy for almost two years. COVID19 has only accelerated the processes that digitalization brings with it. The subject of this paper also includes significant technologies that contribute to the process of internationalization of SMEs such as: e-commerce, e-money transfer, e-marketing, e-business. The concept of digital transformation is very agile, because it has brought different effects, depending on the industry. But in a general sense, the integration of digital technology into all areas of business leads to fundamental changes in the way companies do business and provide value to their customers.
The processes of internationalization of small and medium enterprises and large corporations are largely different. The SME sector faces many difficulties that are typical of the SME sector, such as limited access to resources and financing, lack of appropriate qualifications, etc. By applying modern information and communication technologies, the process of internationalization can be greatly simplified. SMEs that access markets by applying new technologies must be aware of greater competition and the changing conditions that define a company's behavior. Diversity is often based on their market of origin and the industry in which they operate.
New technologies simplify the process of internationalization of SMEs, but despite the many advantages, companies must be aware of the limitations and risks associated with different market conditions and increased global competition coming from other companies.
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