Going International by Going Digital: Digital Capabilities, Transformation, and Leadership in Export Performance

ABSTRACT This study explores how small and medium‐sized exporters (SMEs) in an emerging economy enhance international performance through digital transformation (DT). It analyzes the mediating role of DT, the enabling role of digital capabilities (DCs), and the moderating effect of digital transformational leadership (DTL). Data from 133 export‐oriented SMEs in Vietnam were analyzed using partial least squares structural equation modeling (PLS‐SEM) with robustness checks for nonlinear effects, endogeneity, and unobserved heterogeneity. The findings show that DCs—human, innovation, networking, and technical—significantly enhance export performance, both directly and indirectly through DT. DTL further strengthens these relationships by guiding the strategic use of digital technologies. Export competitiveness in emerging markets thus depends not only on technological readiness but also on leadership quality and organizational capability building. Managers should treat DT as a firm‐wide capability‐development process rather than a simple technology upgrade. Export SMEs need to invest in digital literacy, innovation, and external networks while fostering trust and collective learning under visionary leadership. Policymakers should reinforce SME‐focused digital infrastructure, training, and leadership programs to sustain global competitiveness. Integrating the resource‐based view (RBV), dynamic capabilities view (DCV), and upper echelons theory (UET), this study offers a unified framework explaining SME internationalization in the digital age. By clarifying how DCs, DT, and DTL interact to drive export performance in a volatile and complex environment, it advances international business theory and provides actionable insights for managers and policymakers.