From Local to Global: Unveiling the Influence of Social Networking Sites in the Internationalisation of Sri Lankan SMEs

Abstract

This study examines the role of Social Networking Sites in driving the degree, speed, and scope of internationalisation of small and medium-sized enterprises in Sri Lanka, framed through the Uppsala Revised Model, which emphasizes incremental learning and network-based internationalization. Employing a quantitative approach, data was collected through questionnaire from the senior management of 128 Sri Lankan SMEs engaged in export-oriented activities. A linear regression and moderated regression analysis have been conducted to analyse the relationship between SNS and internationalisation of SMEs and the moderating effect of international experience using Python 3.12. Findings reveal a significant positive association between SNS usage and SME internationalization, suggesting that SNS platforms, including Facebook, Instagram and WhatsApp enable firms to overcome traditional resource and network limitations by facilitating a successful internationalisation process. The study further identifies that international experience moderate this relationship, enhancing the impact of SNS on internationalisation for SMEs with prior international experience. The present study contributes to the literature on SME internationalisation by providing insights specific to developing economies and offering actionable recommendations for practitioners and policymakers on SMEs capacity building, government support for digital adoption and training programs.