How does cross-border e-commerce change as small and medium-sized enterprises expand into emerging markets?

The purpose of the study is to investigate the changes in cross-border e-commerce in international trade patterns as small and medium-sized enterprises (SMEs) expand into emerging nations. The identified problem is that SMEs face informational challenges, as well as marketing and functional barriers, to be successful in host regions. Skill gap and lack of credit for SMEs are the main issues (United Nations Economic and Social Commission for Asia and the Pacific [ESCAP], 2024). The theoretical analysis through transaction cost theory (TCT) shows that firms choose those regions that incur lower costs. The method used is a systematic literature review conducted to understand the importance of digitisation in overcoming functional and informational barriers. The findings show that SMEs adopt new business models to minimise their costs and gain a significant number of global customers through online presence rather than offline ones. This shows that firms reject traditional business models and strategies and adopt new strategies and practices to improve their cross-border e-commerce trade as they enter emerging nations. The study is relevant to understanding the importance of digitalisation, new business models, improved sustainability practices, dynamic marketing capabilities, and regulatory environment changes for SMEs to expand into emerging nations.