Artificial Intelligence Empowering the Internationalization Strategy of SMEs in Emerging Markets: An Empirical Study Based on Dynamic Capabilities and Real Options Theory

Abstract

Amidst the dual backdrop of the digital economy wave and increasing global uncertainty, artificial intelligence (AI) technology is profoundly reshaping the logic and pathways of firm internationalization. This study focuses on small and medium-sized enterprises (SMEs) in emerging markets, aiming to explore how their AI capabilities influence strategic choices in internationalization. By integrating dynamic capabilities theory and real options theory, this paper constructs a theoretical framework, proposing that AI capabilities empower SMEs to adopt more proactive and flexible market entry modes and expansion strategies through two core mechanisms: "environmental uncertainty reduction" and "strategic flexibility generation." Employing a mixed-methods research design that prioritizes questionnaire surveys supplemented by multiple case studies, the study collected and analyzed data from 327 internationalized SMEs in China and Southeast Asia. Structural equation modeling analysis revealed that a firm's AI capabilities (encompassing three dimensions: data analytics, intelligent prediction, and process automation) have a significant positive impact on the degree of internationalization (β = 0.42, p < 0.001) and the preference for low-commitment entry modes (β = 0.38, p < 0.001). Case studies further elucidated the critical role of AI in scenarios such as real-time market insight, supply chain risk simulation, and cross-border intelligent customer service. This research not only expands the theory of firm internationalization in the digital age by conceptualizing AI as a core dynamic capability but also provides practical guidance for SMEs in emerging markets seeking to leverage digital technology for "agile internationalization" within complex global environments.