Going international by going digital and green: the effects of digitalisation and green economy practices on internationalisation of SMEs

Purpose This study aims to examine how digitalization influences the internationalization of small and medium-sized enterprises (SMEs), with a focus on the moderating role of green economy practices. Design/methodology/approach The study is based on survey data from 150 Vietnamese SMEs drawn from the World Bank Enterprise Survey. Partial least squares structural equation modeling was used to test the research hypotheses and assess the robustness of the findings. Findings The results confirm that digitalization significantly facilitates SME internationalization by reducing traditional barriers such as limited resources, high transaction costs and restricted market access. However, green economy practices exert a paradoxical moderating effect. While they can enhance legitimacy and competitiveness in global markets, they also impose additional operational demands that may weaken the positive impact of digitalization on international expansion. Originality/value This study contributes to the SME internationalization literature by extending the resource-based view to demonstrate how digital capabilities interact with sustainability pressures. It provides new insights into the digital–green nexus, showing that the benefits of digitalization for SMEs are contingent on the strategic management of green economy practices, particularly in emerging-market contexts.