Digitalization and Internationalization: Assessing Digital Maturity’s Impact on the Internationalization Speed and Performance of Saudi SMEs’ Global Expansion

Abstract

This doctoral dissertation explores the role of digitalization and internationalization in driving company growth, with a particular focus on small and medium-sized enterprises (SMEs). As a powerful duo, these trends present both opportunities and challenges, requiring SMEs to adapt and reconfigure their performance models. Despite significant attention to this topic, there remains a need to synthesize and categorize diverse contributions to gain a deeper understanding of how digitalization and internationalization have evolved. This study employs a three-stage methodology: first, a bibliometric analysis; second, theoretical and conceptual assessments; and third, a comprehensive survey evaluating digital capabilities. By linking digital proficiency to rapid international expansion and SME performance, this research provides valuable insights into the intersection of digitalization and global business growth. The goal is to establish a strong foundation for future research and debate on this critical subject. A bibliometric analysis of 246 publications in international business research was conducted to establish a contextual understanding of digitalization, followed by a front analysis to further refine these findings. Perspectives for future research are also explored. Additionally, the study assesses traditional SME internationalization models and introduces an alternative, capabilities-based digital maturity model designed to accelerate SME internationalization. This advancement calls for an expansion of the resource-based view (RBV) theory to incorporate digitalization-related capabilities. The proposed model features a matrix of eight key capabilities to assess an SME’s digital maturity, along with two components of internationalization speed: the speed of committing to these capabilities and the speed of developing them. Finally, drawing on digital maturity theory, this research explores the impact of eight digital capabilities on SME internationalization and overall performance. Based on responses from 164 Saudi SMEs, the findings confirm that higher levels of digital maturity positively influence both the speed of internationalization learning and the speed of committing to international markets. Additionally, the results indicate that internationalization speed has a positive effect on SME performance. However, in contrast to previous literature, some strategic elements of digital maturity were not supported. Despite this, the study provides empirical evidence to guide SMEs in leveraging digitalization to enhance both internationalization and performance. This doctoral dissertation offers valuable insights for practitioners and policymakers, underscoring the strategic role of digital maturity in SMEs within emerging economies.