AI-enabled capabilities and SME internationalization under fragmented globalization: evidence from Chinese cross-border e-commerce firms

Purpose This study aims to examine how artificial intelligence (AI)-enabled capabilities shape the internationalization of Chinese cross-border e-commerce small and medium-sized enterprises (SMEs) operating under fragmented globalization. It focuses on how firms use AI-supported analysis to interpret foreign-market conditions, evaluate international opportunities and adapt cross-border commitments. Design/methodology/approach A qualitative multiple-case study was conducted across eight Chinese cross-border e-commerce SMEs. The analysis draws on 36 semi-structured interviews with founders, senior managers and technology specialists, triangulated with company, platform and regulatory documents. Data were analyzed using the Gioia methodology. Findings The study identifies three interrelated AI-enabled capabilities: foreign-market sensing, strategic evaluation and cross-border reconfiguration. Their interaction produces selective international engagement, whereby firms continuously prioritize, intensify, reduce or redirect commitments as market attractiveness, institutional complexity and operational feasibility change. AI augments rather than replaces experiential learning by broadening, accelerating and systematizing the information available for managerial judgement. Originality/value The study shifts digital internationalization research beyond market access and coordination toward interpretation and adaptation. It distinguishes AI-enabled capabilities from general digitalization and refines internationalization process theory by showing that improved foreign-market knowledge does not necessarily generate progressively greater commitment; it can also support restraint, retrenchment and resource reallocation across markets.