The Role of Digitalization and Product Competitiveness on SMEs' Ability to Penetrate International Markets
Keywords:
Digitalization; Product Competitiveness; SMEs; International Markets ExportsAbstract
This study aims to analyze the role of digitization and product competitiveness in the ability of SMEs to penetrate international markets. The current digital transformation provides great opportunities for SMEs to expand their marketing reach, improve operational efficiency, and strengthen their product position amid global competition. However, not all SMEs are able to optimize digitization, and product competitiveness is also an important factor in determining the success of expansion into international markets. This study uses a quantitative approach by distributing questionnaires to SME players as respondents. Independent variables and the dependent variable in the regression model. Furthermore, the R Square value of 0.400 indicates that the independent variables in the model are able to explain 40.0% of the variation in the dependent variable. Respondents were selected using purposive sampling, namely SMEs that have implemented digital technology in their business activities. The research instrument was compiled using a 5-point Likert scale to measure respondents' perceptions of digitalization (X1), product competitiveness (X2), and the ability of SMEs to penetrate international markets (Y).
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