Digital Trade Transformation for SMEs in Asia Pacific Using the Technology-Organization-Environment Framework: A Literature Review

Abstract

The rise of digital trade has significantly transformed global commerce, enabling businesses to leverage digital technologies for enhanced efficiency, market access, and international competitiveness. In the Asia Pacific region, SMEs play a vital economic role but often face barriers such as limited resources, digital readiness gaps, and regulatory complexities. This study aims to explore the digital trade transformation of SMEs in the Asia Pacific region using the Technology-Organization-Environment (TOE) framework. This study uses the TOE framework to comprehensively analyze technological, organizational, and environmental factors shaping SMEs' digital trade transformation. It effectively captures the interplay of internal capabilities and external conditions, offering insights aligned with Asia Pacific's diverse digital landscapes. A literature review was conducted, utilizing databases such as Google Scholar, JSTOR, ScienceDirect, and SpringerLink. Inclusion criteria focused on peer-reviewed studies published within the last decade addressing SMEs, digital trade, and the Asia Pacific region. Thematic coding and content analysis were employed to synthesize findings and categorize them within the TOE framework. The study revealed that technological advancements, organizational readiness, and supportive environmental factors are critical for SMEs’ digital trade success. However, disparities in regulatory environments and digital infrastructure across countries pose challenges. The alignment of SMEs' practices with WTO e-commerce agreements is vital for fostering global competitiveness. This research provides a comprehensive understanding of digital trade transformation for SMEs in the Asia Pacific region. Integrating the TOE framework with international trade rules, offers actionable insights for policymakers and businesses to enhance SME digital readiness and competitiveness.