Exploring the Co-Creation of Small and Medium Enterprises, and Service Providers Enabled by Digital Interactive Platforms for Internationalization: A Case Study in Malaysia

Abstract

Small and medium-sized enterprises (SMEs) make an important contribution to their country’s economy, job creation and balance of trade. The government has supported their development through service providers and has encouraged them to participate in the international market. Despite its importance and the encouragement from the government, participation in the international market is low and studies have shown that SMEs struggle to overcome barriers to internationalization. Digital technologies are tools to accelerate internationalization. This study aimed to explore the collaboration between SMEs and service providers enabled by digital interactive platforms (DIP) to accelerate internationalization. Interviews were conducted with seven participants involving two SME food and beverage (F&B) manufacturing company owners, three government agencies and two experts to gain a deeper understanding of the collaborative process through DIP to accelerate internationalization. A thematic analysis of the triadic qualitative study was utilized to understand the themes that emerged from different data sources, including in-depth interviews, observation and documentation review. Our findings show that the co-creation process was more effective through DIP and that it helps service providers create more value towards the internationalization of SMEs. In addition, the triadic approach proved that there was a more prevalent use-value among actors when using digital technology as a platform, as it helped them to expedite internationalization. The service experience by SMEs is also more impactful to a firm’s performance and enables them to follow strategic sustainability practices. We also found that the symbiotic relationship between SMEs and service providers has an important role to play in generating value for both parties.