ISSN: 2226-3624
Open access
Purpose: This study aims to dissect the underlying mechanisms and boundary conditions through which the Innovation Entry Mode (IEM) influences the International Business Performance (IBP) of Small and Medium-sized Enterprises (SMEs). Specifically, a moderated mediation model is constructed to examine the mediating role of Organisational Agility (OA) and the moderating role of Digital Capability (DC). Methodology: Hypotheses were tested using covariance-based structural equation modelling (CB-SEM) based on questionnaire data collected from 130 internationalising SMEs across multiple regions in China. Findings: Innovation entry modes exert a direct positive influence on international business performance, whilst also indirectly impacting it by enhancing organisational agility. Furthermore, digital capabilities not only directly bolster international business performance but also positively mediate the relationship between innovation entry modes and organisational agility, as well as between organisational agility and international business performance. Research limitations: The data in this study are based solely on cross-sectional information; future longitudinal research may be employed to validate causal relationships. Furthermore, exploration of additional potential mediating variables and moderating variables could provide a more comprehensive understanding of this complex phenomenon. Value: By revealing the intrinsic mechanisms and boundary conditions through which innovation entry modes enhance international performance, this study offers a novel perspective for the internationalisation of SMEs. Enterprises should systematically position innovation entry modes, organisational agility, and digital capabilities as a synergistic “strategic triangle”, thereby effectively elevating their international competitiveness in the digital era.
Abdul-Rashid, S. H., Sakundarini, N., Ghazilla, R. A. R., & Thurasamy, R. (2017). The impact of sustainable manufacturing practices on sustainability performance: Empirical evidence from Malaysia. International Journal of Operations & Production Management, 37(2), 182-204. https://doi.org/10.1108/IJOPM-04-2015-0223
Agyapong, F. O., Agyapong, A., & Poku, K. (2017). Nexus between social capital and performance of micro and small firms in an emerging economy: The mediating role of innovation. Cogent Business & Management, 4(1), 1309784. https://doi.org/10.1080/23311975.2017.1309784
AGUTTER, C. (2024). DIGITAL AND IT STRATEGY, DIGITAL DISRUPTION AND ORGANISATIONAL VIABILITY. In ITIL 4 Digital and IT Strategy (DITS): Your companion to the ITIL 4 Strategic Leader DITS certification (pp. 64–94). IT Governance Publishing. https://doi.org/10.2307/jj.19985115.7
Annarelli, A., Battistella, C., Nonino, F., Parida, V., & Pessot, E. (2021). Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences. Technological Forecasting and Social Change, 166, 120635. https://doi.org/10.1016/j.techfore.2021.120635
Barney, J. B. (2000). Firm resources and sustained competitive advantage. In Economics meets sociology in strategic management (pp. 203-227). Emerald Group Publishing Limited. https://doi.org/10.1016/S0742-3322(00)17018-4
Biloslavo, R., Edgar, D. A., & Rusjan, R. (2022). Strategic Dualities and Business Model Innovation within SMEs. Journal of East European Management Studies, 27(3), 462–486. https://www.jstor.org/stable/27295025
Catanzaro, A., & Teyssier, C. (2021). Export promotion programs, export capabilities, and risk management practices of internationalized SMEs. Small Business Economics, 57(3), 1479–1503. https://www.jstor.org/stable/48695523
Chen, X., Zhou, D., Zhan, Z., & Lu, R. (2023). When do you enter? entrepreneurial firms’ entry timing and product performance in the digital platform market. Sustainability, 15(6), 5313. https://doi.org/10.3390/su15065313
Drydakis, N. (2022). Artificial Intelligence and Reduced SMEs’ Business Risks.: A Dynamic Capabilities Analysis during the COVID-19 Pandemic. IZA - Institute of Labor Economics. http://www.jstor.org/stable/resrep64207
Elena, G. (2025). Big Data and AI as human–machine interaction technologies in managerial decision-making within Digital Business. Studies in Big Data. https://doi.org/10.1007/978-3-031-78686-0_3
FRENCH, M., HESSELGREAVES, H., WILSON, R., HAWKINS, M., & LOWE, T. (2023). Complexity as a service reform trajectory: dynamic capabilities for better public service outcomes. In Harnessing Complexity for Better Outcomes in Public and Non-profit Services (1st ed., pp. 37–51). Bristol University Press. https://doi.org/10.2307/jj.455860.10
Gentile-Lüdecke, S., de Oliveira, R. T., & Paul, J. (2020). Does organizational structure facilitate inbound and outbound open innovation in SMEs? Small Business Economics, 55(4), 1091–1112. https://www.jstor.org/stable/48734925
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Lee, M.-J., & Roh, T. (2023). Digitalization capability and sustainable performance in emerging markets: Mediating roles of in/out-bound open innovation and coopetition strategy. Management Decision. https://doi.org/10.1108/MD-10-2022-1398
Mollet, L. S., & Kaudela-Baum, S. (2022). Linking business agility with people management practices. Die Unternehmung, 76(4), 430–442. https://www.jstor.org/stable/27295485
Nuhu, N. S., Owens, M., & McQuillan, D. (2021). International entrepreneurship from emerging to developed markets: an institutional perspective. International Marketing Review, 38(3), 453-486. https://doi.org/10.1108/IMR-02-2020-0028
NURSKI, L., & RUER, N. (2024). EXPOSURE TO GENERATIVE ARTIFICIAL INTELLIGENCE IN THE EUROPEAN LABOUR MARKET. Bruegel. http://www.jstor.org/stable/resrep58150
Quy, N. H., & Lan, N. T. P. (2024). The impact of digital technology application and digital capabilities in enhancing the digital export performance of Vietnamese enterprises. Journal of State Management, 31(14), 11-21. https://doi.org/10.59394/JSM.43
Sang-Joon, K. (2019). Knowledge sharing and collaboration within and across firms. Management. https://doi.org/10.1093/obo/9780199846740-0163
Srividhya, M., & Vidya, C. T. (2024). Internationalization at Inception: Insights from the Indian Textile Industry’s Born Globals. Journal of Economic Integration, 39(3), 688–713. https://www.jstor.org/stable/27327178
Tallon, P. P., Queiroz, M., Coltman, T., & Sharma, R. (2019). Information technology and the search for organizational agility: A systematic review with future research possibilities. The Journal of Strategic Information Systems, 28(2), 218-237. https://doi.org/10.1016/j.jsis.2018.12.002
Tariq, M. U. (2025). Innovative strategies for enhancing SME competitiveness in emerging economies. In Models, Strategies, and Tools for Competitive SMEs (pp. 151-172). IGI Global.https://doi.org/10.4018/979-8-3693-4046-2.ch007
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Van, I. N. (2025). Impact of Entrepreneurial Competencies and Coopetition Strategy on Sustainable Performance: A Moderated Mediation Model. Asian Academy of Management Journal, 30(1), 121-148.https://doi.org/10.21315/aamj2025.30.1.5
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Journal of Management Information Systems, 38(1), 115-144. https://www.taylorfrancis.com/chapters/edit/10.4324/9781003008637-4/understanding-digital-transformation-gregory-vial
Rongchun, L., Zhengming, L., & Chelliah, S. (2026). How Innovation Entry Modes Drive International Business Performance in the Digital Age: The Mediating Role of Organisational Agility and the Moderating Role of Digital Capabilities. International Journal of Academic Research in Economics and Management Sciences, 15(1), 580-591.
Copyright: © 2026 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode