Does Cross-border E-commerce Promote the Internationalization of SMEs in BRICS Countries?— Evidence From China and Brazil

Does Cross-border E-commerce Promote the Internationalization of SMEs in BRICS Countries?— Evidence From China and Brazil | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Does Cross-border E-commerce Promote the Internationalization of SMEs in BRICS Countries?— Evidence From China and Brazil Mengni Xin, António Mendonça This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5645142/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The study aims to examine how cross-border e-commerce has influenced the internationalization of small and medium-sized enterprises (SMEs) in BRICS countries from 2008 to 2023. It places particular emphasis on China and Brazil, given their significance as representative economies within the group. A Two-Stage Least Squares model is employed to reveal that cross-border e-commerce substantially enhances the internationalization of SMEs, although the effects differ. Due to developed e-commerce infrastructure, a supportive legal environment, widespread adoption of digital payments, and sizeable investments in logistics and technology, the impact is particularly strong in China. Comparatively, Brazil faces challenges, including limited infrastructure and high tariff barriers, which hinder the potential of cross-border e-commerce to promote SMEs’ internationalization effectively. The results indicate that GDP growth supports the internationalization of SMEs in certain BRICS nations, possibly due to varying economic conditions and transitions within these economies. Internet penetration rates show a positive correlation with SMEs’ internationalization in BRICS countries, which highlighting the crucial role of digital infrastructure; while high tariffs are widely acknowledged as a major barrier, limiting SMEs’ ability to leverage cross-border e-commerce effectively. The research suggests that BRICS countries require customized policies to strengthen digital infrastructure and reduce trade barriers, enabling SMEs to reach global markets more effectively. Future studies should involve detailed analyses of each BRICS member, exploring how advancing technologies such as artificial intelligence and blockchain could further support SMEs’ internationalization through cross-border e-commerce. JEL Classification: F10, L81 Cross-Border E-Commerce Small and Medium-Sized Enterprises Internationalization BRICS 1. Introduction Since the introduction of the “BRIC” concept in 2001, the BRICS countries have become key representatives of emerging economies and powerful engines of global economic growth, drawing widespread attention. The BRICS nations not only have remarkable advantages in population and resources but also hold an important share in the global economy and trade. They account for 40.6% of the world’s population, 24.7% of global GDP, and approximately one-fifth of global trade volume (Lal, 2023 ). Specially, SMEs contribute significantly to job creation, promoting innovation, and developing regional economies due to their flexibility and adaptability, thereby turning into an essential driving force for economic growth in BRICS nations (Pan et al., 2023 ). Internationalization is considered a vital engine for promoting SMEs’ innovation and development, yet SMEs face numerous challenges in the process of going global. The rise of cross-border e-commerce has provided new avenues for them to overcome these difficulties. In recent years, the development of e-commerce in BRICS countries has been exceptionally rapid, and the growth in online shoppers and e-commerce trade volume has offered immense space for the expansion of cross-border e-commerce. Of the world’s 5.4 billion internet users, approximately 32.5% are from BRICS countries. China alone contributes over 1 billion users[1] . In 2022, BRICS countries reported 1.35 billion online shoppers, constituting 61% of the global online shopping population. This rise highlights substantial prospects for the advancement of cross-border e-commerce. Over the past five years, the global compound annual growth rate of retail e-commerce is estimated at 11.16%[2] , while the average annual growth rate of e-commerce trade volume in BRICS was about 20%, far exceeding the global average[3] . During the same period, the scale of cross-border e-commerce in BRICS countries reached $ 5,536 billion, accounting for 41% of the global total. Especially as representatives of BRICS countries, the rapid growth of e-commerce in China and Brazil has provided strong support for the internationalization of SMEs. The emergence of cross-border e-commerce has provided important solutions for SMEs, significantly reducing trade barriers through the internet and modern logistics systems and helping them enter international markets at lower costs (Wang, 2021 ). Cross-border e-commerce platforms not only assist SMEs in integrating into global supply chains but also stimulate the development of the labor market, aid enterprises in innovating business models, and establish international reputations (Ho & Adjouro, 2021 ). This paper aims to study how cross-border e-commerce promotes the internationalization of SMEs in BRICS countries. By analyzing relevant data on cross-border e-commerce and the internationalization of SMEs, it explores the current status and disparities among BRICS countries in these areas and delves into the reasons behind these differences. The purpose of this study is to reveal the key factors by which cross-border e-commerce facilitates the internationalization of SMEs in BRICS countries and to explore its applications and effects in different economic environments, providing valuable references for policymakers and enterprise managers. 2. Literature review The development of cross-border e-commerce has opened up new avenues for the internationalization of small and medium-sized enterprises. Existing research primarily focuses on how cross-border e-commerce helps SMEs mitigate resource scarcity disadvantages, enhance innovation capabilities and entrepreneurial orientation, expand network relationships, optimize supply chain management, and the impact of institutional environments on their international strategic choices. 2.1 Research on Factors Influencing SME Internationalization SMEs hold a significant position in the global economy, and the international market offers a vast platform for their development. However, corporate strategic choices, management capabilities, market uncertainties, and the instability of political, administrative, and legal systems pose major challenges (Raymond & St-Pierre, 2013 ; Bahri et al., 2021 ). Czinkota et al. ( 1999 ) categorized the factors influencing corporate internationalization strategies as proactive and reactive. Management capabilities and entrepreneurial orientation are crucial internal drivers promoting SME internationalization (Chandra et al., 2021 ). However, internal obstacles such as resource scarcity, firm size, age, product quality, and geographical location may limit the internationalization process (Leonidou, 2004). Robust institutional infrastructure and innovation capacity are vital for SME internationalization (Knight & Cavusgil, 2004 ). Currency fluctuations, government policies, and socio-cultural barriers present significant challenges for firms entering international markets (Chandra et al., 2020 ). Issues like lack of market knowledge, insufficient family support, rampant fraudulent buyers, negative third-party impacts, poor domestic port management, and disorderly local markets severely hinder the internationalization of SMEs (Islam et al., 2023). Environmental challenges in international markets and access to external knowledge are important factors affecting internationalization (Johanson & Vahlne, 2009 ). Huang et al. (2022) explored how network relationships facilitate SMEs’ internationalization, suggesting that companies may be able to obtain resources and information through networks to reduce risks. Network relations are crucial in the internationalization process because firms can overcome the “liability of outsidership” by establishing and maintaining international networks (Musteen et al., 2014 ). Market-oriented companies exhibit a more outstanding performance in entering international markets and enhancing international outcomes (Fernandes et al., 2020 ). Transnational strategic alliances are considered effective means for SMEs to overcome cognitive barriers during internationalization (Zhang et al., 2020 ). The institutional environment significantly influences SMEs’ international strategic choices. Lower institutional quality encourages firms to favor overseas expansion, while higher institutional quality aids in increasing overseas sales (Deng & Zhang, 2018 ). Managerial experience, along with elements such as international certification, influences how institutional quality affects SME internationalization (Puthusserry et al., 2019 ). 2.2 Research on the Impact of Cross-Border E-Commerce on SMEs Internationalization Studies on the effects of cross-border e-commerce on SMEs internationalization indicate that it can elevate SMEs’ global engagement by improving the development environment, widening market access, reducing trade costs, and strengthening resilience against risks. First, cross-border e-commerce establishes an enabling environment for the development of SMEs. It provides a more supportive environment where growth and competitiveness in the international market can be attained. The construction of a cross-border e-commerce service ecosystem has opened new paths for SMEs to internationalize, enhancing their global competitiveness, while more value was added as well as created in the international market (Zhou et al., 2024 ; Elia et al., 2021 ; Cassetta et al., 2020 ). The most favorable development environment for SMEs has been provided by the establishment of cross-border e-commerce platforms and the support by the strategy of “Internet+”. However, they face challenges including market monopolies, incomplete payment systems, and information security issues. (Chen & Wang, 2021 ; Wen et al., 2023 ). Secondly, cross-border e-commerce enhances market prospects and reduces the obstacles for SMEs to access foreign markets. Cross-border e-commerce facilitates international trade for SMEs by minimizing intermediaries and providing affordable digital services (Zhang & Zhang, 2021 ). Internet platforms enable SMEs to connect with foreign customers in a more flexible and accessible way, helping them reduce marketing expenses (Dong & Li, 2021 ). Moreover, the precision marketing tools and big data analytics provided by cross-border e-commerce platforms allow SMEs to more effectively acquire target customers and improve market expansion efficiency (Zhang, 2023 ). Furthermore, cross-border e-commerce substantially diminishes trade expenses for small and medium-sized enterprises. E-commerce platforms offer cost-effective services for customs clearance, currency exchange, tax refund, and logistics, therefore minimizing the operational expenses linked to global market entry (Xie & Wu, 2018 ). Thus, cross-border e-commerce lowers entry barriers and aids SMEs in cost management, thereby enhancing their competitiveness in global marketplaces (Ma et al., 2019 ). Cross-border e-commerce platforms attain economies of scale that reduce logistics and payment service costs for SMEs in international trade (Zhang & Liu, 2023). Ultimately, cross-border e-commerce bolsters the resilience of SMEs in the face of danger. Amid increasing global economic uncertainty and rising trade protectionism, cross-border e-commerce offers SMEs a feasible refuge during crises by utilizing the Internet's accessibility, flexibility, and convenience, thereby augmenting their resilience and survival prospects (Jin & Su, 2022 ). Simultaneously, cross-border e-commerce indirectly promotes technology and process innovation via entrepreneurial orientation, allowing SMEs to enhance essential resources, create value creation models, and reorganize value chains (Costa & Castro, 2021). Moreover, the varied market strategies facilitated by cross-border e-commerce empower SMEs to alleviate possible losses from single-market vulnerabilities through diversified operations, hence augmenting their capacity to endure risks (Smith & Johnson, 2022). With progress in the digital era, cross-border online trade has increasingly become an important form of international commerce. Therefore, in this respect, cross-border e-commerce platforms need to be added to the analytic framework for SMEs’ internationalization. The relevant literature has discussed the driving factors of SMEs’ internationalization intensively and has pointed out that managerial capability, network relations, and institutional environments all play a crucial role in international business. In the meantime, it is believed that cross-border e-commerce platforms can remarkably facilitate approaches to optimize the development environment, reduce the threshold of market entry, decrease trade costs, and improve risk resilience in the internationalization of SMEs. However, most of the literature so far has looked at the internationalization processes of SMEs in developed countries where research on the role of cross-border e-commerce in the internationalization of SMEs within developing nations is scanty. Furthermore, most of the available studies also focus on contexts from single countries, without comparative analyses with respect to how cross-border e-commerce shapes the internationalization of SMEs across different countries and economies, especially in diversified economies such as that of the BRICS nations. It covers the status of cross-border electronic commerce and the internationalization processes of SMEs in BRICS countries, elaborates on the disparity in development of cross-border electronic commerce and the different stages in its internationalization processes among these countries, and points out the reasons behind such differences. Our research will fill the gap in the existing literature by providing a cross-national comparative perspective, coupled with an in-depth analysis of the mechanisms through which cross-border e-commerce affects SMEs within their different economic contexts. The findings will enable policymakers and enterprise managers to better make sense of and utilize the cross-border e-commerce platforms to actively promote the international development of SMEs. 3 Status Quo In the context of a slowing global economy, small and medium-sized enterprises utilizing cross-border e-commerce have become fresh drivers of economic expansion. Their significance is drawing heightened focus, especially within developing nations such as those in the BRICS countries. 3.1 Overview of cross-border e-commerce development in BRICS countries Driven by globalization and digital revolution, cross-border e-commerce has emerged as an essential engine for the expansion of international trade. As of 2023, its global market size approached $ 4.9 trillion, accounting for 22% of total retail e-commerce sales globally. In the post-pandemic environment and amid growing demand in emerging economies, both consumers and businesses have progressively adopted online channels, resulting in a market growth of around 44% since 2019[4] . The BRICS member economies stand for emerging countries characterized by a large population base, coupled with fast-growing internet users, hence creating a solid market base for the development of cross-border e-commerce. In 2023, the combined population of the five BRICS countries had surpassed 3.3 billion, accounting for about 42% of the world's population[5] . The total internet users in these countries exceed 2 billion, about 55% of the world's total. The extensive user base and ongoing enhancement of internet penetration rates present significant market potential for the advancement of cross-border e-commerce. In particular, BRICS countries are already at the rapid growth stage in terms of cross-border e-commerce. In 2023, the amount of cross-border e-commerce trade in China reached 2.37 trillion yuan (about $ 334 billion), up 15.3% compared with the same period last year[6] . Meanwhile, as the largest economy in Latin America, Brazilian e-commerce is projected to reach an estimated BRL 169.6 billion (approximately $ 32 billion) in 2022, up about 12% on the core annual rate, with nearly 40% coming from cross-border online shopping[7] . Other BRICS countries also witness fast-expanding e-commerce markets. For instance, the Indian e-commerce market would reach 188 billion dollars by 2025. 3.2 Cross-border e-commerce facilitates the internationalization of SMEs in BRICS countries. In the policy frameworks supporting the internationalization of small and medium-sized enterprises, governments worldwide have increasingly strengthened the role of cross-border e-commerce. In 2022, the BRICS Business Council established a working group for micro, small, and medium enterprises, making it possible for SMEs to integrate resources and explore cooperative opportunities through concrete initiatives such as setting up a cross-border e-commerce cooperation platform for BRICS SMEs, hosting online business matchmaking meetings, and organizing trade exhibitions. The Chinese government has implemented multiple supportive policies—including establishing comprehensive pilot zones for cross-border e-commerce, providing tax incentives, and facilitating customs clearance—to assist SMEs in leveraging cross-border e-commerce to expand into international markets (Zhang & Zhao, 2023). Similarly, Brazil established a specialized agency, Brazilian Micro and Small Business Support Service (Original language: Serviço Brasileiro de Apoio às Micro e Pequenas Empresas), which actively supports SMEs in engaging in international trade through cross-border e-commerce by offering digital training, launching internationalization programs for SMEs, collaborating with global e-commerce platforms, and organizing online international trade activities (Cabral & Paiva, 2018 ). The implementation of these policies has propelled the rise of SMEs on the international stage via cross-border e-commerce platforms, significantly supporting the internationalization processes of SMEs in BRICS countries in multiple facets through the rapid development of cross-border e-commerce. First of all, it has significantly reduced the obstacles for these businesses to penetrate international markets. Traditional international trade often involves complex procedures and high transaction costs, whereas cross-border e-commerce provides a more convenient pathway. In China, the number of SMEs participating in cross-border e-commerce platforms increased from about 200,000 in 2015 to over 600,000 in 2023, marking a 200% growth[8] . Similarly, the number of SMEs engaging in cross-border e-commerce in Brazil and India is also rising rapidly. Brazilian SMEs involved in cross-border e-commerce grew from approximately 50,000 in 2018 to about 120,000 in 2023; in India, the number increased from around 100,000 in 2017 to approximately 250,000 in 2023[9] . Secondly, cross-border e-commerce has enhanced transaction efficiency for SMEs. By leveraging innovative services such as online payments and intelligent logistics introduced by cross-border e-commerce platforms, these businesses can respond more effectively to international demand. In 2023, the proportion of SMEs in the BRICS countries conducting transactions through cross-border e-commerce increased from about 25% in 2019 to around 40%, with China’s SMEs reaching a transaction volume proportion of 45%, an increase of 18 percentage points compared to 2019[10] . Lastly, the evolution of cross-border e-commerce has stimulated SMEs’ interest in international cooperation. The number of online shoppers among the BRICS countries continues to rise, fostering collaboration among SMEs across these nations. As of 2023, cross-border online shoppers in the BRICS countries numbered about 80 million, up approximately 45% from 55 million in 2020. This growth not only reflects consumer recognition of cross-border e-commerce but also underscores its role in promoting international cooperation among SMEs. Through such collaborations, businesses can better integrate resources and enhance their competitiveness in global markets. 3.3 Challenges Faced Despite the notable progress of BRICS countries in terms of SMEs internationalization, especially with regard to cross-border e-commerce development, multiple obstacles remain. The threat of market expansion remains high and is currently ranked as the major barrier. Major gaps in market conditions between these countries imply that small businesses often lack profound market analysis and strategic planning regarding accessing foreign markets, which results in unclear positioning and issues with attracting local customers (Cassia & Magno, 2022 ). Secondly, a significant deficiency exists in the development of professional talent pools, particularly among individuals possessing international perspectives and cross-cultural communication skills. In the internationalization process, understanding the target market's laws, regulations, culture, and business practices is essential. However, SMEs often struggle to attract and retain such talent, limiting their capacity to expand internationally (Liang & Gong, 2023 ). Externally, the slowdown in global economic growth and uncertainties in international political climates have heightened risks for SMEs engaged in cross-border e-commerce (McKinsey, 2020 ). Additionally, fluctuations in national policies and international trade barriers have further complicated the internationalization efforts of SMEs. Although trade agreements and cooperative mechanisms exist among BRICS nations, disparities in policy frameworks and regulations make rapid adaptation challenging. Non-tariff barriers such as technical standards and environmental requirements in international markets also hinder SMEs from entering global markets (Liu et al., 2022 ). Moreover, logistics and supply chain management pose significant issues. While cross-border e-commerce has opened more market opportunities, the maturity and efficiency of logistics networks in the BRICS countries lag behind developed nations. Infrastructure disparities, particularly in logistics and distribution, result in high costs and long cycles for cross-border deliveries, diminishing product competitiveness (Dastidar & Banerjee, 2020 ). The complexity of supply chain management further increases risks in cross-border transactions, including delays, losses, and reverse logistics challenges, introducing operational uncertainties (Zhang & Li, 2023 ). To overcome such challenges, SMEs in the BRICS countries should proactively implement countermeasures that will enhance market research, develop clearer market entry strategies, and invest in growing talents for cross-cultural communication skills, such as international business teams. Additionally, governments should intensify policy-level cooperation among BRICS nations, decrease trade barriers and policy uncertainties, and further improve the environment for the internationalization of SMEs (Wang, 2024). The internationalization of SMEs within the BRICS framework will be strengthened to be more sustainable through collaborative efforts and the impact of cross-border e-commerce. 4 Theoretical Hypotheses and Model Construction This section will present the study's hypotheses grounded on the theoretical framework and detail the research design. 4.1 Theoretical Hypotheses The research will develop a model based on pertinent theories and put forward research hypotheses in order to fully examine the factors impacting the internationalization of SMEs in BRICS nations. 4.1.1 Comparative Advantage Theory and Factor Endowment Differences The Comparative Advantage Theory, introduced by David Ricardo in 1817, posit that countries should specialize in the production and exportation of those commodities with relatively lower opportunity costs to maximize the benefits derived from international trade. Heckscher ( 1919 ) expanded on this theory by proposing that a nation’s comparative advantage is grounded in its available production factors, such as labor, capital, and land resources. In the modern context, cross-border e-commerce has emerged as a critical source of information, significantly shaping a country’s competitive position in global trade. By leveraging advanced digital infrastructure and technological capabilities, cross-border e-commerce allows nations to secure new competitive advantages in international markets (Grossman & Helpman, 2005 ). For SMEs, this form of e-commerce enhances access to international market information and narrows gaps with larger enterprises in logistics and business negotiations (Elia et al., 2021 ). As a result, smaller companies can utilize sophisticated e-commerce platforms to improve their market intelligence, thus accelerating the internationalization process (Wang et al., 2023). On the other hand, the full realization of a country’s comparative advantage boosts overall economic productivity and optimize resource allocation, which in turn supports the international expansion of SMEs. Notably, high GDP growth rates elevate the domestic competitiveness of enterprises and contribute to capital accumulation, enhancing their foreign investment capacity and expansion potential into overseas markets (Melitz, 2003). In such a favorable economic environment, SMEs gain substantial support for their internationalization efforts, positioning them better to engage in global competition and enter international markets. Building upon this theoretical basis, we formulate the following research hypotheses: H1: Cross-border e-commerce significantly promotes the internationalization level of SMEs in BRICS countries. H2: GDP growth rate significantly enhances the internationalization level of SMEs in BRICS countries. 4.1.2 Transaction Cost Theory Following the Transaction Cost Theory, devised by Ronald Coase ( 1937 ), in imperfect markets with asymmetric information, transaction partners incur higher costs related to the search for information, negotiation, and enforcement of contracts. In the course of developing and maturing, a market will see these costs decrease. Cross-border e-commerce significantly lowered the transaction costs of SMEs in international trade, especially in areas like information gathering (Yadav, 2014 ), market analysis, and logistics management, thereby enabling them to surmount traditional disadvantages in trade. Moreover, cross-border e-commerce platforms offer standardized transaction procedures and mechanisms of payment, facilitating SMEs to interface with international markets more swiftly and cost-effectively besides reducing risks and costs linked to institutional imperfections (Bakos, 1997 ). In addition, inadequate understating of foreign market and industry information by a country can lead to misjudgment about the imported industries or products and thus inefficiently lead to unreasonable tariff policies, increasing transaction costs (Du et al., 2022 ). A drop in tariff rates could mitigate information asymmetry and enhance economic efficiency through improved resource allocation. From the above analysis, the following hypothesis is proposed: H3: Reduction in tariff rates significantly facilitates the internationalization process of SMEs in BRICS countries. 4.1.3 Principal-Agent Theory Jensen and Meckling ( 1976 ) proposed Principal-Agent Theory, indicating that information asymmetry in a principal-agent interaction may result in divergent interests between the principal and the agent, accordingly incurring agency costs. In conventional international trade, SMEs frequently rely on third parties to oversee trade activities, which not only raises expenses but also possibly leads to principal-agent dilemmas, including information asymmetry and moral hazards. The emergence of cross-border e-commerce platforms has markedly improved this scenario by integrating services like supply chain management, logistics, payment processing, and customs clearance, offering SMEs a comprehensive foreign trade service system (Liu, 2014 ). This integration effectively reduces agency costs and unethical practices. Hart and Moore ( 1999 ) further examined the underpinnings of incomplete contracts, offering enhanced theoretical perspectives on principal-agent dynamics. Cross-border e-commerce platforms improve oversight and regulation of transaction processes via data monitoring and automated systems, hence reducing risks encountered by SMEs during internationalization (Tang, 2017 ). Increased internet penetration rates enable SMEs to more readily access information via cross-border e-commerce platforms and directly engage with international markets, thereby alleviating issues of information asymmetry (Liu & Gu, 2022; Bargoni et al., 2024 ). Based on this analysis, the following research hypothesis is proposed: H4: Improvement in internet penetration rates amplifies the positive impact of cross-border e-commerce on SME internationalization in BRICS countries. 4.2 Model Construction This subsection outlines the data, variables, their sources, data frequency, period span, and the econometric model adopted for this paper. On the basis of the following grounds, China and Brazil have been chosen to represent BRICS economies for empirical analysis in order to fulfill the research implications of this study: first and foremost, China and Brazil occupy the top two positions in economic significance among BRICS members, enjoying top economic positions in Asia and Latin America, respectively. Their levels of cross-border e-commerce development and the degree of SMEs internationalization are representative within their regions. Secondly, the two countries exhibit differences in the stages and models of cross-border e-commerce development—China's cross-border e-commerce has entered a mature phase, while Brazil is in a period of rapid growth. Studying these countries helps compare the impact of cross-border e-commerce on SME internationalization at different development stages. In addition, China and Brazil are far different in cultural, legal, and market environments; therefore, it provides the best contrastive background for this research, which can enhance the generalizability of the research outcome. Both governments attach great importance to the role of cross-border e-commerce in promoting economic development and have thrown out many policies supporting SMEs’ internationalization, constituting a rich policy environment for this study. Taking China and Brazil as representative countries not only makes a difference in the aspect of representation and complementarity but also helps deepen the research on the mechanism of how cross-border e-commerce affects SME internationalization. 4.2.1 Variables and Measurements This paper builds upon the research findings of Cieslik ( 2009 ), Kuenzel and Sharma ( 2021 ), and Li et al. ( 2024 ) etc. Utilizing the most recent research data, we have selected one dependent variable, one independent variable, and three control variables, as detailed in Table 1 . Table 1 Variables’ name, sign, definition and sources Variables Sign Definition Sources Dependent Variable SMEs Internationalization Level SIL The Internationalization Level of SMEs (SIL) is comprehensively measured by the proportion of overseas sales to total sales of SMEs in each country. China Ministry of Commerce & Serviço Brasileiro de Apoio às Micro e Pequenas Empresas Independent Variable Cross-border E-commerce Development CBE In the context of exports and imports, Cross-border E-commerce Development is measured by the ratio of cross-border e-commerce trade to total domestic trade. A higher ratio implies better development. China International E-commerce Nerwork, eMarketer & E-bit/Nielsen Control Variables GDP Growth Rate GR The annual GDP growth rate of each country each year. World Bank Tariff MFN The tariff rates use the Most Favored Nation (MFN) rates of each country at each year. World Trade Organization Internet Penetration Rate IP Internet Penetration (IP) rate demonstrates a country's internet usage. International Telecommunication Union The extent of internationalization of SMEs, the dependent variable, is quantified by the ratio of foreign sales to total sales. The degree of cross-border e-commerce development, the independent variable, is quantified by the ratio of cross-border e-commerce export value to the total domestic trade export value. The annual GDP growth rate, a control variable, is widely used to evaluate a nation's macroeconomic vitality, illustrating the correlation between economic growth and internationalization efforts. Data are derived from the World Bank's yearly statistical reports. The average annual Most Favored Nation tariff rate, a control variable, acts as a representative measure of trade barriers, indicating a nation's degree of trade protectionism. It guarantees oversight of the effects of tariff disparities on internationalization. Data are sourced from the World Trade Organization. One essential indicator for analyzing technical infrastructure, especially in the field of e-commerce, is the Internet penetration rate, which serves as a control variable. Information retrieved from the International Telecommunication Union database. The empirical research subjects in this work are China and Brazil, and the data range covered is 16 years, from 2008 to 2023. The statistical tool SPSS Statistics 29 is used for the empirical analysis. 4.2.2 Model Due to potential endogeneity among the variables in this study—for example, the independent variable (cross-border e-commerce development) may be correlated with the error term—using Ordinary Least Squares regression could lead to biased estimation results. To address this issue, this paper employs the Two-Stage Least Squares method, substituting the potentially endogenous independent variable with control variables to obtain consistent and efficient parameter estimates. Therefore, the model is constructed as follows: SIL = α i + β 1 CBE + β 2 GR + β 3 MFN + β 4 IP + ε i This model can effectively assess the impact of cross-border e-commerce development on SME internationalization while simultaneously controlling for the influence of other macroeconomic variables. 5 Empirical Results and Analysis This section lays out the steps used and outcomes of the empirical study in detail. To uncover the related patterns among the variables, we first do a preliminary study of the data from Brazil and China using correlation analysis and descriptive statistics. Secondly, we investigate the connection between internationalization of SMEs and cross-border e-commerce using a two-stage least squares regression analysis. To avoid endogeneity problems and make sure the results are robust, the regression analysis is divided into two stages. 5.1 Descriptive Statistical Analysis Tables 2 and 3 present the descriptive statistics for China and Brazil. China exhibits robust vitality and growth potential in the internationalization of SMEs and the realm of cross-border e-commerce. SMEs hold a substantial share in exports, and the increase in cross-border e-commerce transaction volumes demonstrates an active digital trade landscape. Sustained economic growth and relatively low tariff levels provide advantageous conditions for international trade, while a high internet penetration rate offers a solid foundation for the development of e-commerce. Table 2 Descriptive Statistics (China) N Minimum Maximum Mean Std. Deviation SIL 16 20.925 53.500 37.037 9.582 CBE 16 4.440 40.350 21.895 13.300 GR 16 2.239 10.636 7.169 2.293 MFN 16 7.500 9.900 9.012 1.045 IP 16 22.600 78.000 52.275 17.205 Valid N (listwise) 16 Table 3 Descriptive Statistics (Brazil) N Minimum Maximum Mean Std. Deviation SIL 16 0.400 1.100 0.669 0.202 CBE 16 0.400 2.400 1.194 0.485 GR 16 -3.546 7.528 1.676 3.132 MFN 16 11.100 13.700 13.200 0.809 IP 16 34.200 86.600 60.557 16.418 Valid N (listwise) 16 In contrast, the performance of Brazilian SMEs in internationalization appears relatively limited, with export proportions significantly lower than those of China. The development of cross-border e-commerce also shows considerable disparities. Higher tariff levels may pose obstacles to international trade. Moreover, Brazil appears to face more challenges in promoting SME internationalization and e-commerce development compared to China's economic dynamism, despite having a relatively high internet penetration rate. However, with the continuous spread of global internet technologies and market evolution, Brazil still possesses potential growth opportunities in the field of internationalization. 5.2 Correlation Analysis Tables 4 and 5 present the Pearson correlation coefficients of key variables for China and Brazil, respectively. Table 4 Parson Correlation (China) SIL CBE GR MFN IP SIL Pearson Correlation 1 .961 ** − .787 ** − .765 ** .992 ** Sig. (2-tailed) < .001 < .001 < .001 < .001 CBE Pearson Correlation .961 ** 1 − .814 ** − .749 ** .962 ** Sig. (2-tailed) < .001 < .001 < .001 < .001 GR Pearson Correlation − .787 ** − .814 ** 1 .633 ** − .784 ** Sig. (2-tailed) < .001 < .001 < .001 < .001 MFN Pearson Correlation − .765 ** − .749 ** .633 ** 1 − .782 ** Sig. (2-tailed) < .001 < .001 < .001 < .001 IP Pearson Correlation .992 ** .962 ** − .784 ** − .782 ** 1 Sig. (2-tailed) < .001 < .001 < .001 < .001 **. Correlation is significant at the 0.01 level (2-tailed). Table 5 Pearson Correlation (Brazil) SIL CBE GR MFN IP SIL Pearson Correlation 1 .786** .291** − .718** .646** Sig. (2-tailed) < .001 < .001 < .001 < .001 CBE Pearson Correlation .786** 1 .094** − .829** .886** Sig. (2-tailed) < .001 < .001 < .001 < .001 GR Pearson Correlation .291** .094** 1 − .100** − .233** Sig. (2-tailed) < .001 < .001 < .001 < .001 MFN Pearson Correlation − .718** − .829** .100** 1 − .690** Sig. (2-tailed) < .001 < .001 < .001 < .001 IP Pearson Correlation .756** .86** − .233** − .690** 1 Sig. (2-tailed) < .001 < .001 < .001 < .001 **. Correlation is significant at the 0.01 level (2-tailed). As shown in Table 4 , the internationalization level of Chinese SMEs has a significant positive correlation with the development of cross-border e-commerce (r = 0.961, p < .001) and internet penetration rate (r = 0.992, p < .001). This indicates that e-commerce and internet infrastructure have played an important role in promoting SME internationalization. Conversely, SME internationalization is significantly negatively correlated with GDP growth rate (r = -0.787, p < .001) and the Most Favored Nation (MFN) tariff rate (r = -0.762, p < .001), suggesting that higher tariffs and lower GDP growth may hinder internationalization efforts. In both China and Brazil, the correlation coefficients among the independent variables are below problematic levels, confirming the absence of multicollinearity issues. 5.3 Regression Analysis and Results In the first stage of the regression analysis, we consider CBE as the dependent variable (Y), with GR, MFN, and IP as independent variables. A linear regression is performed to obtain predicted estimates. The second stage employs SIL as the dependent variable and the first stage's predicted estimates as independent variables for the linear regression. 5.3.1 First-Stage Regression Analysis Table 6 Summary of First-Stage Regression Results (Cragg-Donald Statistic) Item R² Partial R² Shea’s R² F-statistic F (3,12) p-value China: CBE 0.935 0.935 0.935 57.365 0 Brazil: CBE 0.881 0.881 0.881 29.593 0 In the first-stage regression analysis for China and Brazil, the models exhibit high robustness and validity. For China, the model's R 2 value is 0.935, indicating that the independent variables explain 93.5% of the variance in cross-border e-commerce, demonstrating strong explanatory power. Additionally, the partial R 2 and Shea's R 2 values are both 0.935, further confirming the strong correlation between the control variables and the endogenous variable. The F-statistic is 57.365 with a p-value of 0.000, highly significant at the 1% level, suggesting that the independent variables have a significant impact on CBE and that there is no issue of weak instrumental variables. Similarly, Brazil's model shows comparable results, with an R² value of 0.911, meaning that 91.1% of the variance in CBE is explained by the independent variables. The partial R2 and Shea's R2 are also 0.911, affirming the relevance of the control variables. Brazil's F-statistic is 29.593 with a p-value of 0.000, significant at the 1% level, indicating that the control variables are effective and highly correlated with CBE. In conclusion, the models for China and Brazil both demonstrate a strong and significant relationship between the control variables and the endogenous variable CBE. This not only validates the effectiveness of the two-stage least squares estimation but also supports the attainment of reliable and valid estimation results in the second-stage regression analysis. 5.3.2 TSLS Regression Analysis Table 7 TSLS model analysis results (n = 16) (China) Non-standardized Coef. t p 95% CI R 2 Adjust R 2 Wald χ 2 B Std. Err. constant 20.907 1.328 15.745 0.000 ** 18.305 ~ 23.510 0.920 0.914 χ 2 (1) = 195.254, p = 0.000 CBE 0.737 0.053 13.973 0.000 ** 0.633 ~ 0.840 Note: Explained variable = SIL * p < 0.05 ** p < 0.01 In China’s TSLS regression result in Table 7 , the coefficient of determination (R²) is 0.920, and the adjusted R² is 0.914, indicating that the model explains 91.4% of the variation in SME internationalization. The unstandardized coefficient for the independent variable CBE is 0.737, which is highly significant at the 0.01 significance level. All other things being equal, we expect SMEs internationalization to increase by 0.737 units when CBE increases by one unit. Additionally, the Wald χ² test results further confirm that the positive impact of CBE on SME internationalization is statistically significant, and the overall model fit is quite satisfactory. Table 8 TSLS model analysis results (n = 16) (Brazil) Non-standardized Coef. t p 95% CI R 2 Adjust R 2 Wald χ 2 B Std. Err. constant 0.393 0.136 2.885 0.004** 0.126 ~ 0.659 0.704 0.886 χ 2 (1) = 27.711, p = 0.000 CBE 0.231 0.107 2.164 0.000** 0.022 ~ 0.441 Note: Explained variable = SIL * p < 0.05 ** p < 0.01 In Brazil’s TSLS regression result shows in Table 8 , R² is 0.704, and the adjusted R² is 0.686, meaning the model explains 68.6% of the variation in SME internationalization. The unstandardized coefficient for the independent variable CBE is 0.231, also significant at the 0.01 level, indicating that it positively influences the internationalization of Brazilian SMEs. The Wald χ² test results show significance, further validating the impact of CBE on SMEs internationalization in Brazil. 5.3.3 Discussion The findings demonstrate that cross-border e-commerce is an important independent factor enhancing the internationalization efforts of SMEs in both countries. This data contributes to a better understanding of how CBE facilitates SMEs’ global expansion. However, comparing the TSLS model results between the two nations reveals notable differences. The R² and adjusted R² values for China's model exceed those of Brazil’s, indicating that the former more effectively elucidates the variation in the internationalization of SMEs. This suggests that SMEs in China receive greater support for internationalization due to the rapid growth of cross-border e-commerce. In recent years, the Chinese government has established comprehensive cross-border e-commerce pilot zones and introduced a series of supportive policies, lowering the barriers for enterprises to participate in international trade. Measures such as tax incentives and customs facilitation (Tian et al., 2024 ) have reduced operational costs for businesses. The widespread application of digital technologies like artificial intelligence and big data has improved transaction efficiency and security, enabling SMEs to more precisely grasp market demand and achieve rapid product iteration and innovation. Additionally, China's investments in international e-commerce infrastructure—such as establishing overseas warehouses and enhancing logistics networks—have significantly lowered logistics costs and improved delivery efficiency (Hu & Xu, 2022 ). These initiatives have enabled SMEs to become more globally competitive and to access markets that were previously unreachable. It is believed that improving e-commerce standards and regulations, along with fostering greater international cooperation, will make the expansion of SMEs in cross-border e-commerce more standardized and sustainable. The substantial disparity in CBE coefficients (0.737 > 0.231) can be attributed to the differing economies and internationalization strategies of China and Brazil. The huge domestic market and strong industrial base in China provide SMEs with plentiful resources and lower production costs. Meanwhile, the Chinese government has launched several programs to facilitate SMEs’ access to new international markets through e-commerce platforms, offering substantial support for cross-border e-commerce growth. Chinese SMEs often turn to digital marketing and social media to broaden their global reach (Hu et al., 2024 ). By contrast, despite Brazil's enormous untapped potential, the country's e-commerce sector is still in its early stages of development. It is possible that the effectiveness of internationalization of SMEs will be constrained by a lack of a suitable logistical infrastructure and limited electronic payment systems (Pitta et al., 2024 ). Consequently, numerous Brazilian SMEs adopt a more prudent strategy for worldwide expansion, favoring conventional trade channels over internet tools. Compared to China, cross-border e-commerce in Brazil exerts a lesser influence on the internationalization of SMEs due to various factors, including inadequate client trust, sluggish adoption of electronic payments, and other comparable challenges (Veiga et al., 2024). Based on the above results, the research hypotheses of this study are derived as: Table 9 Summary of the hypotheses of the empirical results Hypothesis Results of China Results of Brazil H1: Cross-border e-commerce development has significantly contributed to the internationalization of SMEs √ √ H2: GDP growth rates contribute significantly to the level of internationalization of SMEs. × √ H3: The reduction in tariff rates has significantly contributed to the internationalization of SMEs. √ √ H4: Increased Internet penetration enhances the role of cross-border e-commerce in driving the internationalization of SMEs. √ √ Note: “×” indicates that the research hypothesis is not empirically supported, and “√” indicates that the research hypothesis is empirically supported. 5.4 Exogeneity Tests Table 10 Overidentifying Restrictions Tests (China) Test Null Hypothesis Test Result Conclusion Sargan Test All control variables are exogenous χ 2 (2) = 1.421, p = 0.492 Accept the null hypothesis Basmann Test All control variables are exogenous χ 2 (2) = 1.169, p = 0.557 Accept the null hypothesis Table 11 Overidentifying Restrictions Tests (Brazil) Test Null Hypothesis Test Result Conclusion Sargan Test All control variables are exogenous χ 2 (2) = 3.297, p = 0.192 Accept the null hypothesis Basmann Test All control variables are exogenous χ 2 (2) = 3.114, p = 0.211 Accept the null hypothesis Overidentification tests are utilized to assess whether the instrumental variables satisfy the exogeneity condition—that is, whether these instruments are uncorrelated with the model's residuals. In Tables 9 and 10 , both the Sargan test and the Basmann test have the null hypothesis that “all instrumental variables are exogenous.” The test results indicate that all p-values exceed 0.05; therefore, we accept the null hypothesis, confirming that the instrumental variables are indeed exogenous. Given that the model presents endogeneity issues, it is necessary to employ instrumental variable methods (Wooldridge, 2002 ). Using the TSLS approach is crucial and suitable since the instruments satisfy the exogeneity condition. This approach effectively addresses the endogeneity problem, yielding consistent and efficient parameter estimates, thereby validating the rationality and correctness of using the TSLS method in our analysis. 6. Conclusions, Implications and Future Research To empirically examine the impact of cross-border e-commerce on the internationalization level of SMEs in BRICS countries, this study adopts a Two-Stage Least Squares model. The outcomes reveal that cross-border e-commerce significantly supports SMEs in expanding globally across these nations. Based on the results, it seems that these nations have successfully internationalized their SMEs via cross-border e-commerce. The general trend is encouraging, even though individual challenges differ among nations. 6.1 Conclusions Through an in-depth analysis of the cases of China and Brazil, we found that, although cross-border e-commerce generally promotes the internationalization of SMEs across BRICS countries, the extent of its impact and the underlying mechanisms differ significantly in each country. These similarities and differences will be covered in the following discussion. First, models show good explanatory power in first-stage regression results; control factors explain CBE strongly. The growth rate of GDP, the rate of most-favored-nation tariffs, and the rate of internet penetration adequately describe CBE operations in China, Brazil, and other BRICS nations. This finding is consistent with the research of Pan et al. ( 2023 ) and Cassio and Magno (2022). Despite differences in economic environments and policy support levels, the control variables significantly predict CBE levels in BRICS, further validating their explanatory power in analyzing cross-border e-commerce. This result confirms Hypothesis 1 of this study. Secondly, in the second-stage TSLS models, results show that high tariffs increase trade costs, impede the internationalization process of SMEs in BRICS countries, and weaken their international competitiveness (Morais & Ferreira, 2020). Simultaneously, there is a significant positive correlation between internet penetration rates and SMEs internationalization. This indicates that improvements in digital infrastructure can effectively lower barriers for SMEs’ entering international markets. Particularly in regions with widespread internet access, cross-border e-commerce can more effectively assist SMEs in achieving international expansion. These findings confirm hypotheses 3 and 4 in this paper. However, research has revealed that while CBE significantly promotes the internationalization of SMEs, there are notable differences among countries. Specifically, the results indicate that China's cross-border e-commerce plays a more pronounced role in advancing SMEs internationalization. This is closely related to China's mature e-commerce infrastructure and supportive policies. The Chinese government encourages the development of cross-border e-commerce through initiatives like establishing free trade zones and promoting the "Belt and Road" initiative. Continuous investment in logistics, payment systems, and digital infrastructure provides SMEs with greater capacity to rapidly participate in international markets. In contrast, Brazil's infrastructure and payment systems are relatively underdeveloped, limiting the international expansion capabilities of its SMEs (Aurazo & Gasmi, 2024 ). Brazil's logistics primarily rely on two major railway lines and aviation networks; multiple time zones, vast geographical spans, and cold weather pose significant challenges to the stability and timeliness of logistics. Additionally, Brazil's tax policies are not particularly favorable to cross-border e-commerce—for example, purchases over $ 50 are subject to a 60% tax—further increasing the difficulty for SMEs to internationalize (Blegen, 2023 ). Furthermore, China's digital payment user base has reached 853 million, accounting for 86.5% of internet users, reflecting the unique advantages of digital payments in advancing inclusive financial development. Digital payments promote inclusive finance by providing payment services that meet the needs of both supply and demand sides, lowering the threshold for financial services. Additionally, fintech enhances the coverage and precision of inclusive credit. While Brazil has made some progress in digital finance—such as launching the rapid payment system PIX and exploring digital currencies—the development of its cross-border e-commerce still faces challenges. Brazil's banking and fintech account penetration rate stands at 84%, surpassing the regional average of 73.5%, indicating potential in digital financial development (Aduba et al., 2023 ). On the other hand, when analyzing the correlation between SME internationalization and GDP growth rates in China and Brazil, some interesting phenomena emerge. The GDP growth rate in China exhibits a negative correlation with the level of SMEs internationalization. The shift in China's economic growth model could potentially explain it. As the economy transitions from investment-driven to consumption-driven, domestic market competition intensifies. Many SMEs may prefer to seek opportunities in the domestic market rather than allocate resources to international markets. Therefore, even with high GDP growth rates, this does not necessarily promote SMEs internationalization; enterprises might reduce their international efforts due to the attractiveness of the domestic market. In contrast, Brazilian SMEs benefit considerably from the country’s growing GDP. Over time, economic progress driven by policy reforms and market liberalization has created more opportunities for these businesses to reach new markets. As the economy expands, SMEs find it easier to explore international growth, with better access to funding and deeper market insights. Moreover, Brazil has fortified commercial contacts with several nations in recent years, augmenting the internationalization potential of its SMEs. Consequently, GDP growth in Brazil not only signifies overall economic vitality but also facilitates the internationalization of SMEs. This result confirms that Hypothesis 2 of this paper is conditionally valid rejected in China’s case but confirmed in Brazil’s. In addition, Brazil’s economic reforms since the 1990s aim to reduce state intervention and promote marketization and democratization. These reforms may have provided SMEs with more market opportunities and flexibility, facilitating their internationalization. Simultaneously, regulatory reforms, technological advancements, and changing user habits may drive its rapid fintech development, providing SMEs with more financial services and tools to support their international efforts. Considering all factors, China's advanced digital infrastructure and governmental support have endowed it with superior impact in cross-border e-commerce compared to the other BRICS nations. Despite ongoing obstacles, Brazil's SMEs are increasingly benefiting from enhanced support for international expansion due to financial advancements and changes in government policy. To bolster the global advancement of SMEs, the BRICS nations must improve relevant legislation and infrastructure, especially in digitization and logistics. 6.2 Implications for BRICS Countries By honing down on some areas, the BRICS countries can encourage SMEs better internationalize via cross-border e-commerce platforms. The advancement of SME internationalization can only be achieved through the improvement of digital infrastructure and the expansion of internet penetration. There is a stumbling block to the development of cross-border e-commerce in certain BRICS members, like South Africa and India, due to their present internet coverage and logistical infrastructure shortcomings. Hence, these countries should put more money into their networks, logistics, and SMEs don't have a hard time breaking into global markets. Additionally, in order to help SMEs expand internationally, policy backing is crucial. Improving tariff barriers and regulatory policies should be the priority of the BRICS states. Small and medium-sized enterprises in Russia and Brazil face substantial obstacles when trying to participate in cross-border e-commerce due to high tariffs and complicated tax systems. One way to help businesses overcome trade obstacles is to simplify import and export processes and institute policies to cut tariffs. Advancing the establishment of free trade zones will enhance trade relations among BRICS nations and promote the internationalization of SMEs. The widespread adoption and innovation of financial technology significantly contribute to the internationalization of SMEs. The development of fintech in India and Brazil has begun to positively influence cross-border payments and credit support; however, its coverage is still limited. Promoting digital payment systems and inclusive financial policies can reduce the costs related to SMEs' participation in international trade, facilitating their expansion into global markets more effectively. 6.3 Future Research Research in the future can provide light on the interplay between internationalization of SMEs and cross-border e-commerce from a variety of perspectives. First, all BRICS member nations should be included in research more thoroughly, especially the ones with the most unequal digital infrastructure and policy backing. It would clarify the impact of these variations on the global paths taken by SMEs. Second, in the context of cross-border e-commerce, micro-level data used at the enterprise level might reveal the tactics and habits of individual businesses. As an example, when it comes to market entry strategies, organizational restructuring, and resource allocation, SMEs from different nations could show diverse responses. The precise ways in which cross-border e-commerce affects internationalization can be better understood with a solid grasp of these differences. Finally, as new technologies emerge, studies should zero in on how exactly these tools may help SMEs expand their operations abroad. The function of blockchain technology in safeguarding cross-border payment systems is one example, while AI aids SMEs in streamlining supply chain management is another. These state-of-the-art technologies have the potential to greatly reduce the obstacles that small and medium-sized enterprises face when trying to expand internationally, which would give the economies of the BRICS nations a much-needed boost. Declarations Acknowledgement We would like to express our gratitude to the institutions and colleagues who supported this research. We are particularly indebted to professors for their insightful guidance and rigorous feedback. We are also grateful to the organizations in BRICS countries that facilitated access to essential information. Their invaluable support and collaboration made this study possible. Competing interests The authors have no competing interests to declare that are relevant to the content of this article. 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Zhou H, Yao Y, Zan A (2024) Value co-creation of digital platforms and process digitization in small and medium manufacturing enterprises: the moderating role of digital platform resilience. Science & Technology Progress and Policy 41(1):1-10. Footnotes Sources from International Telecommunication Union. Sources from China Ministry of Commerce. Sources from Shanghai Academy of Social Sciences. Sources from eMarketer. Sources from World Bank. Sources from Ministry of Commerce People's Republic. Sources from Associação Brasileira de Comércio Eletrônico. Sources from China Electronic Commerce Association. Sources from India Brand Equity Foundation. Sources from Statista. Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-5645142","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":395893659,"identity":"202df186-8579-45f7-950a-81ca3007e694","order_by":0,"name":"Mengni Xin","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAyElEQVRIiWNgGAWjYLCCBAYGOQZmMJOZeC3GJGoBgsQGBmK1GFw7e+zBwx126fPb2Z9JMFRYJzawnz2AV4vk7Lx0g8QzybkbDvOYSTCcSU9s4MlLwKuFXzrHTCKxjTl3AzMPmwRj2+HEBgkeA7xa2CBa6tPlm4EOY/xHhBaoLYcTGA4zmEkwNhChRXI2WMtxQ6BfjC0SjqUbt/Hk4NdicDvHTPJnW7W8fP/xhzc+1FjL9rOfwa8FFSSAfEeC+lEwCkbBKBgFOAAALqU7wD3xLGAAAAAASUVORK5CYII=","orcid":"","institution":"Sichuan International Studies University","correspondingAuthor":true,"prefix":"","firstName":"Mengni","middleName":"","lastName":"Xin","suffix":""},{"id":395893660,"identity":"c49311d4-3ca3-404c-9bcc-0ddfd6885c90","order_by":1,"name":"António Mendonça","email":"","orcid":"","institution":"University of Lisbon","correspondingAuthor":false,"prefix":"","firstName":"António","middleName":"","lastName":"Mendonça","suffix":""}],"badges":[],"createdAt":"2024-12-14 20:38:09","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-5645142/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-5645142/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":76045525,"identity":"4396ba52-b7e4-4778-8f7f-674c85525e59","added_by":"auto","created_at":"2025-02-11 18:31:46","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1280680,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-5645142/v1/471ad435-f0b7-4d51-8515-71656b69a8b7.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Does Cross-border E-commerce Promote the Internationalization of SMEs in BRICS Countries?— Evidence From China and Brazil","fulltext":[{"header":"1. Introduction","content":"\u003cp\u003eSince the introduction of the \u0026ldquo;BRIC\u0026rdquo; concept in 2001, the BRICS countries have become key representatives of emerging economies and powerful engines of global economic growth, drawing widespread attention. The BRICS nations not only have remarkable advantages in population and resources but also hold an important share in the global economy and trade. They account for 40.6% of the world\u0026rsquo;s population, 24.7% of global GDP, and approximately one-fifth of global trade volume (Lal, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Specially, SMEs contribute significantly to job creation, promoting innovation, and developing regional economies due to their flexibility and adaptability, thereby turning into an essential driving force for economic growth in BRICS nations (Pan et al., \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eInternationalization is considered a vital engine for promoting SMEs\u0026rsquo; innovation and development, yet SMEs face numerous challenges in the process of going global. The rise of cross-border e-commerce has provided new avenues for them to overcome these difficulties. In recent years, the development of e-commerce in BRICS countries has been exceptionally rapid, and the growth in online shoppers and e-commerce trade volume has offered immense space for the expansion of cross-border e-commerce. Of the world\u0026rsquo;s 5.4\u0026nbsp;billion internet users, approximately 32.5% are from BRICS countries. China alone contributes over 1\u0026nbsp;billion users[1]\u003ca class=\"FNLink\" href=\"#Fn1\" id=\"#FNLinkFn1\"\u003e\u003c/a\u003e. In 2022, BRICS countries reported 1.35\u0026nbsp;billion online shoppers, constituting 61% of the global online shopping population. This rise highlights substantial prospects for the advancement of cross-border e-commerce. Over the past five years, the global compound annual growth rate of retail e-commerce is estimated at 11.16%[2]\u003ca class=\"FNLink\" href=\"#Fn2\" id=\"#FNLinkFn2\"\u003e\u003c/a\u003e, while the average annual growth rate of e-commerce trade volume in BRICS was about 20%, far exceeding the global average[3]\u003ca class=\"FNLink\" href=\"#Fn3\" id=\"#FNLinkFn3\"\u003e\u003c/a\u003e. During the same period, the scale of cross-border e-commerce in BRICS countries reached \u003cspan\u003e$\u003c/span\u003e5,536\u0026nbsp;billion, accounting for 41% of the global total. Especially as representatives of BRICS countries, the rapid growth of e-commerce in China and Brazil has provided strong support for the internationalization of SMEs. The emergence of cross-border e-commerce has provided important solutions for SMEs, significantly reducing trade barriers through the internet and modern logistics systems and helping them enter international markets at lower costs (Wang, \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Cross-border e-commerce platforms not only assist SMEs in integrating into global supply chains but also stimulate the development of the labor market, aid enterprises in innovating business models, and establish international reputations (Ho \u0026amp; Adjouro, \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThis paper aims to study how cross-border e-commerce promotes the internationalization of SMEs in BRICS countries. By analyzing relevant data on cross-border e-commerce and the internationalization of SMEs, it explores the current status and disparities among BRICS countries in these areas and delves into the reasons behind these differences. The purpose of this study is to reveal the key factors by which cross-border e-commerce facilitates the internationalization of SMEs in BRICS countries and to explore its applications and effects in different economic environments, providing valuable references for policymakers and enterprise managers.\u003c/p\u003e"},{"header":"2. Literature review","content":"\u003cp\u003eThe development of cross-border e-commerce has opened up new avenues for the internationalization of small and medium-sized enterprises. Existing research primarily focuses on how cross-border e-commerce helps SMEs mitigate resource scarcity disadvantages, enhance innovation capabilities and entrepreneurial orientation, expand network relationships, optimize supply chain management, and the impact of institutional environments on their international strategic choices.\u003c/p\u003e \u003cdiv id=\"Sec3\" class=\"Section2\"\u003e \u003ch2\u003e2.1 Research on Factors Influencing SME Internationalization\u003c/h2\u003e \u003cp\u003eSMEs hold a significant position in the global economy, and the international market offers a vast platform for their development. However, corporate strategic choices, management capabilities, market uncertainties, and the instability of political, administrative, and legal systems pose major challenges (Raymond \u0026amp; St-Pierre, \u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2013\u003c/span\u003e; Bahri et al., \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Czinkota et al. (\u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e1999\u003c/span\u003e) categorized the factors influencing corporate internationalization strategies as proactive and reactive.\u003c/p\u003e \u003cp\u003eManagement capabilities and entrepreneurial orientation are crucial internal drivers promoting SME internationalization (Chandra et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). However, internal obstacles such as resource scarcity, firm size, age, product quality, and geographical location may limit the internationalization process (Leonidou, 2004). Robust institutional infrastructure and innovation capacity are vital for SME internationalization (Knight \u0026amp; Cavusgil, \u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2004\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eCurrency fluctuations, government policies, and socio-cultural barriers present significant challenges for firms entering international markets (Chandra et al., \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Issues like lack of market knowledge, insufficient family support, rampant fraudulent buyers, negative third-party impacts, poor domestic port management, and disorderly local markets severely hinder the internationalization of SMEs (Islam et al., 2023). Environmental challenges in international markets and access to external knowledge are important factors affecting internationalization (Johanson \u0026amp; Vahlne, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2009\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eHuang et al. (2022) explored how network relationships facilitate SMEs\u0026rsquo; internationalization, suggesting that companies may be able to obtain resources and information through networks to reduce risks. Network relations are crucial in the internationalization process because firms can overcome the \u0026ldquo;liability of outsidership\u0026rdquo; by establishing and maintaining international networks (Musteen et al., \u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). Market-oriented companies exhibit a more outstanding performance in entering international markets and enhancing international outcomes (Fernandes et al., \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Transnational strategic alliances are considered effective means for SMEs to overcome cognitive barriers during internationalization (Zhang et al., \u003cspan citationid=\"CR62\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The institutional environment significantly influences SMEs\u0026rsquo; international strategic choices. Lower institutional quality encourages firms to favor overseas expansion, while higher institutional quality aids in increasing overseas sales (Deng \u0026amp; Zhang, \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). Managerial experience, along with elements such as international certification, influences how institutional quality affects SME internationalization (Puthusserry et al., \u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2019\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec4\" class=\"Section2\"\u003e \u003ch2\u003e2.2 Research on the Impact of Cross-Border E-Commerce on SMEs Internationalization\u003c/h2\u003e \u003cp\u003eStudies on the effects of cross-border e-commerce on SMEs internationalization indicate that it can elevate SMEs\u0026rsquo; global engagement by improving the development environment, widening market access, reducing trade costs, and strengthening resilience against risks.\u003c/p\u003e \u003cp\u003eFirst, cross-border e-commerce establishes an enabling environment for the development of SMEs. It provides a more supportive environment where growth and competitiveness in the international market can be attained. The construction of a cross-border e-commerce service ecosystem has opened new paths for SMEs to internationalize, enhancing their global competitiveness, while more value was added as well as created in the international market (Zhou et al., \u003cspan citationid=\"CR64\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Elia et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Cassetta et al., \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The most favorable development environment for SMEs has been provided by the establishment of cross-border e-commerce platforms and the support by the strategy of \u0026ldquo;Internet+\u0026rdquo;. However, they face challenges including market monopolies, incomplete payment systems, and information security issues. (Chen \u0026amp; Wang, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Wen et al., \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eSecondly, cross-border e-commerce enhances market prospects and reduces the obstacles for SMEs to access foreign markets. Cross-border e-commerce facilitates international trade for SMEs by minimizing intermediaries and providing affordable digital services (Zhang \u0026amp; Zhang, \u003cspan citationid=\"CR61\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Internet platforms enable SMEs to connect with foreign customers in a more flexible and accessible way, helping them reduce marketing expenses (Dong \u0026amp; Li, \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Moreover, the precision marketing tools and big data analytics provided by cross-border e-commerce platforms allow SMEs to more effectively acquire target customers and improve market expansion efficiency (Zhang, \u003cspan citationid=\"CR63\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eFurthermore, cross-border e-commerce substantially diminishes trade expenses for small and medium-sized enterprises. E-commerce platforms offer cost-effective services for customs clearance, currency exchange, tax refund, and logistics, therefore minimizing the operational expenses linked to global market entry (Xie \u0026amp; Wu, \u003cspan citationid=\"CR58\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). Thus, cross-border e-commerce lowers entry barriers and aids SMEs in cost management, thereby enhancing their competitiveness in global marketplaces (Ma et al., \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Cross-border e-commerce platforms attain economies of scale that reduce logistics and payment service costs for SMEs in international trade (Zhang \u0026amp; Liu, 2023).\u003c/p\u003e \u003cp\u003eUltimately, cross-border e-commerce bolsters the resilience of SMEs in the face of danger. Amid increasing global economic uncertainty and rising trade protectionism, cross-border e-commerce offers SMEs a feasible refuge during crises by utilizing the Internet's accessibility, flexibility, and convenience, thereby augmenting their resilience and survival prospects (Jin \u0026amp; Su, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Simultaneously, cross-border e-commerce indirectly promotes technology and process innovation via entrepreneurial orientation, allowing SMEs to enhance essential resources, create value creation models, and reorganize value chains (Costa \u0026amp; Castro, 2021). Moreover, the varied market strategies facilitated by cross-border e-commerce empower SMEs to alleviate possible losses from single-market vulnerabilities through diversified operations, hence augmenting their capacity to endure risks (Smith \u0026amp; Johnson, 2022).\u003c/p\u003e \u003cp\u003eWith progress in the digital era, cross-border online trade has increasingly become an important form of international commerce. Therefore, in this respect, cross-border e-commerce platforms need to be added to the analytic framework for SMEs\u0026rsquo; internationalization. The relevant literature has discussed the driving factors of SMEs\u0026rsquo; internationalization intensively and has pointed out that managerial capability, network relations, and institutional environments all play a crucial role in international business. In the meantime, it is believed that cross-border e-commerce platforms can remarkably facilitate approaches to optimize the development environment, reduce the threshold of market entry, decrease trade costs, and improve risk resilience in the internationalization of SMEs.\u003c/p\u003e \u003cp\u003eHowever, most of the literature so far has looked at the internationalization processes of SMEs in developed countries where research on the role of cross-border e-commerce in the internationalization of SMEs within developing nations is scanty. Furthermore, most of the available studies also focus on contexts from single countries, without comparative analyses with respect to how cross-border e-commerce shapes the internationalization of SMEs across different countries and economies, especially in diversified economies such as that of the BRICS nations. It covers the status of cross-border electronic commerce and the internationalization processes of SMEs in BRICS countries, elaborates on the disparity in development of cross-border electronic commerce and the different stages in its internationalization processes among these countries, and points out the reasons behind such differences.\u003c/p\u003e \u003cp\u003eOur research will fill the gap in the existing literature by providing a cross-national comparative perspective, coupled with an in-depth analysis of the mechanisms through which cross-border e-commerce affects SMEs within their different economic contexts. The findings will enable policymakers and enterprise managers to better make sense of and utilize the cross-border e-commerce platforms to actively promote the international development of SMEs.\u003c/p\u003e \u003c/div\u003e"},{"header":"3 Status Quo","content":"\u003cp\u003eIn the context of a slowing global economy, small and medium-sized enterprises utilizing cross-border e-commerce have become fresh drivers of economic expansion. Their significance is drawing heightened focus, especially within developing nations such as those in the BRICS countries.\u003c/p\u003e \u003cdiv id=\"Sec6\" class=\"Section2\"\u003e \u003ch2\u003e3.1 Overview of cross-border e-commerce development in BRICS countries\u003c/h2\u003e \u003cp\u003eDriven by globalization and digital revolution, cross-border e-commerce has emerged as an essential engine for the expansion of international trade. As of 2023, its global market size approached \u003cspan\u003e$\u003c/span\u003e4.9 trillion, accounting for 22% of total retail e-commerce sales globally. In the post-pandemic environment and amid growing demand in emerging economies, both consumers and businesses have progressively adopted online channels, resulting in a market growth of around 44% since 2019[4]\u003ca class=\"FNLink\" href=\"#Fn4\" id=\"#FNLinkFn4\"\u003e\u003c/a\u003e.\u003c/p\u003e \u003cp\u003eThe BRICS member economies stand for emerging countries characterized by a large population base, coupled with fast-growing internet users, hence creating a solid market base for the development of cross-border e-commerce. In 2023, the combined population of the five BRICS countries had surpassed 3.3\u0026nbsp;billion, accounting for about 42% of the world's population[5]\u003ca class=\"FNLink\" href=\"#Fn5\" id=\"#FNLinkFn5\"\u003e\u003c/a\u003e. The total internet users in these countries exceed 2\u0026nbsp;billion, about 55% of the world's total. The extensive user base and ongoing enhancement of internet penetration rates present significant market potential for the advancement of cross-border e-commerce.\u003c/p\u003e \u003cp\u003eIn particular, BRICS countries are already at the rapid growth stage in terms of cross-border e-commerce. In 2023, the amount of cross-border e-commerce trade in China reached 2.37 trillion yuan (about \u003cspan\u003e$\u003c/span\u003e334\u0026nbsp;billion), up 15.3% compared with the same period last year[6]\u003ca class=\"FNLink\" href=\"#Fn6\" id=\"#FNLinkFn6\"\u003e\u003c/a\u003e. Meanwhile, as the largest economy in Latin America, Brazilian e-commerce is projected to reach an estimated BRL 169.6\u0026nbsp;billion (approximately \u003cspan\u003e$\u003c/span\u003e32\u0026nbsp;billion) in 2022, up about 12% on the core annual rate, with nearly 40% coming from cross-border online shopping[7]\u003ca class=\"FNLink\" href=\"#Fn7\" id=\"#FNLinkFn7\"\u003e\u003c/a\u003e. Other BRICS countries also witness fast-expanding e-commerce markets. For instance, the Indian e-commerce market would reach 188\u0026nbsp;billion dollars by 2025.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec7\" class=\"Section2\"\u003e \u003ch2\u003e3.2 Cross-border e-commerce facilitates the internationalization of SMEs in BRICS countries.\u003c/h2\u003e \u003cp\u003eIn the policy frameworks supporting the internationalization of small and medium-sized enterprises, governments worldwide have increasingly strengthened the role of cross-border e-commerce. In 2022, the BRICS Business Council established a working group for micro, small, and medium enterprises, making it possible for SMEs to integrate resources and explore cooperative opportunities through concrete initiatives such as setting up a cross-border e-commerce cooperation platform for BRICS SMEs, hosting online business matchmaking meetings, and organizing trade exhibitions. The Chinese government has implemented multiple supportive policies\u0026mdash;including establishing comprehensive pilot zones for cross-border e-commerce, providing tax incentives, and facilitating customs clearance\u0026mdash;to assist SMEs in leveraging cross-border e-commerce to expand into international markets (Zhang \u0026amp; Zhao, 2023). Similarly, Brazil established a specialized agency, Brazilian Micro and Small Business Support Service (Original language: Servi\u0026ccedil;o Brasileiro de Apoio \u0026agrave;s Micro e Pequenas Empresas), which actively supports SMEs in engaging in international trade through cross-border e-commerce by offering digital training, launching internationalization programs for SMEs, collaborating with global e-commerce platforms, and organizing online international trade activities (Cabral \u0026amp; Paiva, \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). The implementation of these policies has propelled the rise of SMEs on the international stage via cross-border e-commerce platforms, significantly supporting the internationalization processes of SMEs in BRICS countries in multiple facets through the rapid development of cross-border e-commerce.\u003c/p\u003e \u003cp\u003eFirst of all, it has significantly reduced the obstacles for these businesses to penetrate international markets. Traditional international trade often involves complex procedures and high transaction costs, whereas cross-border e-commerce provides a more convenient pathway. In China, the number of SMEs participating in cross-border e-commerce platforms increased from about 200,000 in 2015 to over 600,000 in 2023, marking a 200% growth[8]\u003ca class=\"FNLink\" href=\"#Fn8\" id=\"#FNLinkFn8\"\u003e\u003c/a\u003e. Similarly, the number of SMEs engaging in cross-border e-commerce in Brazil and India is also rising rapidly. Brazilian SMEs involved in cross-border e-commerce grew from approximately 50,000 in 2018 to about 120,000 in 2023; in India, the number increased from around 100,000 in 2017 to approximately 250,000 in 2023[9]\u003ca class=\"FNLink\" href=\"#Fn9\" id=\"#FNLinkFn9\"\u003e\u003c/a\u003e.\u003c/p\u003e \u003cp\u003eSecondly, cross-border e-commerce has enhanced transaction efficiency for SMEs. By leveraging innovative services such as online payments and intelligent logistics introduced by cross-border e-commerce platforms, these businesses can respond more effectively to international demand. In 2023, the proportion of SMEs in the BRICS countries conducting transactions through cross-border e-commerce increased from about 25% in 2019 to around 40%, with China\u0026rsquo;s SMEs reaching a transaction volume proportion of 45%, an increase of 18 percentage points compared to 2019[10]\u003ca class=\"FNLink\" href=\"#Fn10\" id=\"#FNLinkFn10\"\u003e\u003c/a\u003e.\u003c/p\u003e \u003cp\u003eLastly, the evolution of cross-border e-commerce has stimulated SMEs\u0026rsquo; interest in international cooperation. The number of online shoppers among the BRICS countries continues to rise, fostering collaboration among SMEs across these nations. As of 2023, cross-border online shoppers in the BRICS countries numbered about 80\u0026nbsp;million, up approximately 45% from 55\u0026nbsp;million in 2020. This growth not only reflects consumer recognition of cross-border e-commerce but also underscores its role in promoting international cooperation among SMEs. Through such collaborations, businesses can better integrate resources and enhance their competitiveness in global markets.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003e3.3 Challenges Faced\u003c/h2\u003e \u003cp\u003eDespite the notable progress of BRICS countries in terms of SMEs internationalization, especially with regard to cross-border e-commerce development, multiple obstacles remain. The threat of market expansion remains high and is currently ranked as the major barrier. Major gaps in market conditions between these countries imply that small businesses often lack profound market analysis and strategic planning regarding accessing foreign markets, which results in unclear positioning and issues with attracting local customers (Cassia \u0026amp; Magno, \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eSecondly, a significant deficiency exists in the development of professional talent pools, particularly among individuals possessing international perspectives and cross-cultural communication skills. In the internationalization process, understanding the target market's laws, regulations, culture, and business practices is essential. However, SMEs often struggle to attract and retain such talent, limiting their capacity to expand internationally (Liang \u0026amp; Gong, \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eExternally, the slowdown in global economic growth and uncertainties in international political climates have heightened risks for SMEs engaged in cross-border e-commerce (McKinsey, \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Additionally, fluctuations in national policies and international trade barriers have further complicated the internationalization efforts of SMEs. Although trade agreements and cooperative mechanisms exist among BRICS nations, disparities in policy frameworks and regulations make rapid adaptation challenging. Non-tariff barriers such as technical standards and environmental requirements in international markets also hinder SMEs from entering global markets (Liu et al., \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eMoreover, logistics and supply chain management pose significant issues. While cross-border e-commerce has opened more market opportunities, the maturity and efficiency of logistics networks in the BRICS countries lag behind developed nations. Infrastructure disparities, particularly in logistics and distribution, result in high costs and long cycles for cross-border deliveries, diminishing product competitiveness (Dastidar \u0026amp; Banerjee, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The complexity of supply chain management further increases risks in cross-border transactions, including delays, losses, and reverse logistics challenges, introducing operational uncertainties (Zhang \u0026amp; Li, \u003cspan citationid=\"CR63\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eTo overcome such challenges, SMEs in the BRICS countries should proactively implement countermeasures that will enhance market research, develop clearer market entry strategies, and invest in growing talents for cross-cultural communication skills, such as international business teams. Additionally, governments should intensify policy-level cooperation among BRICS nations, decrease trade barriers and policy uncertainties, and further improve the environment for the internationalization of SMEs (Wang, 2024). The internationalization of SMEs within the BRICS framework will be strengthened to be more sustainable through collaborative efforts and the impact of cross-border e-commerce.\u003c/p\u003e \u003c/div\u003e"},{"header":"4 Theoretical Hypotheses and Model Construction","content":"\u003cp\u003eThis section will present the study's hypotheses grounded on the theoretical framework and detail the research design.\u003c/p\u003e \u003cdiv id=\"Sec10\" class=\"Section2\"\u003e \u003ch2\u003e4.1 Theoretical Hypotheses\u003c/h2\u003e \u003cp\u003eThe research will develop a model based on pertinent theories and put forward research hypotheses in order to fully examine the factors impacting the internationalization of SMEs in BRICS nations.\u003c/p\u003e \u003cdiv id=\"Sec11\" class=\"Section3\"\u003e \u003ch2\u003e4.1.1 Comparative Advantage Theory and Factor Endowment Differences\u003c/h2\u003e \u003cp\u003eThe Comparative Advantage Theory, introduced by David Ricardo in 1817, posit that countries should specialize in the production and exportation of those commodities with relatively lower opportunity costs to maximize the benefits derived from international trade. Heckscher (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e1919\u003c/span\u003e) expanded on this theory by proposing that a nation\u0026rsquo;s comparative advantage is grounded in its available production factors, such as labor, capital, and land resources. In the modern context, cross-border e-commerce has emerged as a critical source of information, significantly shaping a country\u0026rsquo;s competitive position in global trade. By leveraging advanced digital infrastructure and technological capabilities, cross-border e-commerce allows nations to secure new competitive advantages in international markets (Grossman \u0026amp; Helpman, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2005\u003c/span\u003e). For SMEs, this form of e-commerce enhances access to international market information and narrows gaps with larger enterprises in logistics and business negotiations (Elia et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). As a result, smaller companies can utilize sophisticated e-commerce platforms to improve their market intelligence, thus accelerating the internationalization process (Wang et al., 2023).\u003c/p\u003e \u003cp\u003eOn the other hand, the full realization of a country\u0026rsquo;s comparative advantage boosts overall economic productivity and optimize resource allocation, which in turn supports the international expansion of SMEs. Notably, high GDP growth rates elevate the domestic competitiveness of enterprises and contribute to capital accumulation, enhancing their foreign investment capacity and expansion potential into overseas markets (Melitz, 2003). In such a favorable economic environment, SMEs gain substantial support for their internationalization efforts, positioning them better to engage in global competition and enter international markets. Building upon this theoretical basis, we formulate the following research hypotheses:\u003c/p\u003e \u003cp\u003eH1: Cross-border e-commerce significantly promotes the internationalization level of SMEs in BRICS countries.\u003c/p\u003e \u003cp\u003eH2: GDP growth rate significantly enhances the internationalization level of SMEs in BRICS countries.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec12\" class=\"Section3\"\u003e \u003ch2\u003e4.1.2 Transaction Cost Theory\u003c/h2\u003e \u003cp\u003eFollowing the Transaction Cost Theory, devised by Ronald Coase (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e1937\u003c/span\u003e), in imperfect markets with asymmetric information, transaction partners incur higher costs related to the search for information, negotiation, and enforcement of contracts. In the course of developing and maturing, a market will see these costs decrease. Cross-border e-commerce significantly lowered the transaction costs of SMEs in international trade, especially in areas like information gathering (Yadav, \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2014\u003c/span\u003e), market analysis, and logistics management, thereby enabling them to surmount traditional disadvantages in trade. Moreover, cross-border e-commerce platforms offer standardized transaction procedures and mechanisms of payment, facilitating SMEs to interface with international markets more swiftly and cost-effectively besides reducing risks and costs linked to institutional imperfections (Bakos, \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). In addition, inadequate understating of foreign market and industry information by a country can lead to misjudgment about the imported industries or products and thus inefficiently lead to unreasonable tariff policies, increasing transaction costs (Du et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). A drop in tariff rates could mitigate information asymmetry and enhance economic efficiency through improved resource allocation. From the above analysis, the following hypothesis is proposed:\u003c/p\u003e \u003cp\u003eH3: Reduction in tariff rates significantly facilitates the internationalization process of SMEs in BRICS countries.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec13\" class=\"Section3\"\u003e \u003ch2\u003e4.1.3 Principal-Agent Theory\u003c/h2\u003e \u003cp\u003eJensen and Meckling (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e1976\u003c/span\u003e) proposed Principal-Agent Theory, indicating that information asymmetry in a principal-agent interaction may result in divergent interests between the principal and the agent, accordingly incurring agency costs. In conventional international trade, SMEs frequently rely on third parties to oversee trade activities, which not only raises expenses but also possibly leads to principal-agent dilemmas, including information asymmetry and moral hazards. The emergence of cross-border e-commerce platforms has markedly improved this scenario by integrating services like supply chain management, logistics, payment processing, and customs clearance, offering SMEs a comprehensive foreign trade service system (Liu, \u003cspan citationid=\"CR40\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). This integration effectively reduces agency costs and unethical practices. Hart and Moore (\u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e1999\u003c/span\u003e) further examined the underpinnings of incomplete contracts, offering enhanced theoretical perspectives on principal-agent dynamics. Cross-border e-commerce platforms improve oversight and regulation of transaction processes via data monitoring and automated systems, hence reducing risks encountered by SMEs during internationalization (Tang, \u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). Increased internet penetration rates enable SMEs to more readily access information via cross-border e-commerce platforms and directly engage with international markets, thereby alleviating issues of information asymmetry (Liu \u0026amp; Gu, 2022; Bargoni et al., \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Based on this analysis, the following research hypothesis is proposed:\u003c/p\u003e \u003cp\u003eH4: Improvement in internet penetration rates amplifies the positive impact of cross-border e-commerce on SME internationalization in BRICS countries.\u003c/p\u003e \u003c/div\u003e \u003c/div\u003e \u003cdiv id=\"Sec14\" class=\"Section2\"\u003e \u003ch2\u003e4.2 Model Construction\u003c/h2\u003e \u003cp\u003eThis subsection outlines the data, variables, their sources, data frequency, period span, and the econometric model adopted for this paper.\u003c/p\u003e \u003cp\u003eOn the basis of the following grounds, China and Brazil have been chosen to represent BRICS economies for empirical analysis in order to fulfill the research implications of this study: first and foremost, China and Brazil occupy the top two positions in economic significance among BRICS members, enjoying top economic positions in Asia and Latin America, respectively. Their levels of cross-border e-commerce development and the degree of SMEs internationalization are representative within their regions. Secondly, the two countries exhibit differences in the stages and models of cross-border e-commerce development\u0026mdash;China's cross-border e-commerce has entered a mature phase, while Brazil is in a period of rapid growth. Studying these countries helps compare the impact of cross-border e-commerce on SME internationalization at different development stages. In addition, China and Brazil are far different in cultural, legal, and market environments; therefore, it provides the best contrastive background for this research, which can enhance the generalizability of the research outcome. Both governments attach great importance to the role of cross-border e-commerce in promoting economic development and have thrown out many policies supporting SMEs\u0026rsquo; internationalization, constituting a rich policy environment for this study. Taking China and Brazil as representative countries not only makes a difference in the aspect of representation and complementarity but also helps deepen the research on the mechanism of how cross-border e-commerce affects SME internationalization.\u003c/p\u003e \u003cdiv id=\"Sec15\" class=\"Section3\"\u003e \u003ch2\u003e4.2.1 Variables and Measurements\u003c/h2\u003e \u003cp\u003eThis paper builds upon the research findings of Cieslik (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2009\u003c/span\u003e), Kuenzel and Sharma (\u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), and Li et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) etc. Utilizing the most recent research data, we have selected one dependent variable, one independent variable, and three control variables, as detailed in Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eVariables\u0026rsquo; name, sign, definition and sources\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"5\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVariables\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSign\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eDefinition\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eSources\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"4\" nameend=\"c4\" namest=\"c1\"\u003e \u003cp\u003e\u003cem\u003eDependent Variable\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSMEs Internationalization Level\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSIL\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eThe Internationalization Level of SMEs (SIL) is comprehensively measured by the proportion of overseas sales to total sales of SMEs in each country.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eChina Ministry of Commerce \u0026amp; Servi\u0026ccedil;o Brasileiro de Apoio \u0026agrave;s Micro e Pequenas Empresas\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"4\" nameend=\"c4\" namest=\"c1\"\u003e \u003cp\u003e\u003cem\u003eIndependent Variable\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCross-border E-commerce Development\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eIn the context of exports and imports, Cross-border E-commerce Development is measured by the ratio of cross-border e-commerce trade to total domestic trade. A higher ratio implies better development.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eChina International E-commerce Nerwork, eMarketer \u0026amp; E-bit/Nielsen\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"4\" nameend=\"c4\" namest=\"c1\"\u003e \u003cp\u003e\u003cem\u003eControl Variables\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGDP Growth Rate\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eThe annual GDP growth rate of each country each year.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eWorld Bank\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"1\" nameend=\"c5\" namest=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eTariff\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eThe tariff rates use the Most Favored Nation (MFN) rates of each country at each year.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eWorld Trade Organization\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eInternet Penetration Rate\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eInternet Penetration (IP) rate demonstrates a country's internet usage.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eInternational Telecommunication Union\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe extent of internationalization of SMEs, the dependent variable, is quantified by the ratio of foreign sales to total sales.\u003c/p\u003e \u003cp\u003eThe degree of cross-border e-commerce development, the independent variable, is quantified by the ratio of cross-border e-commerce export value to the total domestic trade export value.\u003c/p\u003e \u003cp\u003eThe annual GDP growth rate, a control variable, is widely used to evaluate a nation's macroeconomic vitality, illustrating the correlation between economic growth and internationalization efforts. Data are derived from the World Bank's yearly statistical reports.\u003c/p\u003e \u003cp\u003eThe average annual Most Favored Nation tariff rate, a control variable, acts as a representative measure of trade barriers, indicating a nation's degree of trade protectionism. It guarantees oversight of the effects of tariff disparities on internationalization. Data are sourced from the World Trade Organization.\u003c/p\u003e \u003cp\u003eOne essential indicator for analyzing technical infrastructure, especially in the field of e-commerce, is the Internet penetration rate, which serves as a control variable. Information retrieved from the International Telecommunication Union database.\u003c/p\u003e \u003cp\u003eThe empirical research subjects in this work are China and Brazil, and the data range covered is 16 years, from 2008 to 2023. The statistical tool SPSS Statistics 29 is used for the empirical analysis.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec16\" class=\"Section3\"\u003e \u003ch2\u003e4.2.2 Model\u003c/h2\u003e \u003cp\u003eDue to potential endogeneity among the variables in this study\u0026mdash;for example, the independent variable (cross-border e-commerce development) may be correlated with the error term\u0026mdash;using Ordinary Least Squares regression could lead to biased estimation results. To address this issue, this paper employs the Two-Stage Least Squares method, substituting the potentially endogenous independent variable with control variables to obtain consistent and efficient parameter estimates. Therefore, the model is constructed as follows:\u003c/p\u003e \u003cp\u003e \u003cem\u003eSIL\u003c/em\u003e\u0026thinsp;=\u0026thinsp;α\u003csub\u003ei\u003c/sub\u003e\u0026thinsp;+\u0026thinsp;β\u003csub\u003e1\u003c/sub\u003e\u003cem\u003eCBE\u003c/em\u003e\u0026thinsp;+\u0026thinsp;β\u003csub\u003e2\u003c/sub\u003e\u003cem\u003eGR\u003c/em\u003e\u0026thinsp;+\u0026thinsp;β\u003csub\u003e3\u003c/sub\u003e\u003cem\u003eMFN\u003c/em\u003e\u0026thinsp;+\u0026thinsp;β\u003csub\u003e4\u003c/sub\u003e\u003cem\u003eIP\u003c/em\u003e\u0026thinsp;+\u0026thinsp;ε\u003csub\u003ei\u003c/sub\u003e\u003c/p\u003e \u003cp\u003eThis model can effectively assess the impact of cross-border e-commerce development on SME internationalization while simultaneously controlling for the influence of other macroeconomic variables.\u003c/p\u003e \u003c/div\u003e \u003c/div\u003e"},{"header":"5 Empirical Results and Analysis","content":"\u003cp\u003eThis section lays out the steps used and outcomes of the empirical study in detail. To uncover the related patterns among the variables, we first do a preliminary study of the data from Brazil and China using correlation analysis and descriptive statistics. Secondly, we investigate the connection between internationalization of SMEs and cross-border e-commerce using a two-stage least squares regression analysis. To avoid endogeneity problems and make sure the results are robust, the regression analysis is divided into two stages.\u003c/p\u003e \u003cdiv id=\"Sec18\" class=\"Section2\"\u003e \u003ch2\u003e5.1 Descriptive Statistical Analysis\u003c/h2\u003e \u003cp\u003eTables\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e and \u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e present the descriptive statistics for China and Brazil. China exhibits robust vitality and growth potential in the internationalization of SMEs and the realm of cross-border e-commerce. SMEs hold a substantial share in exports, and the increase in cross-border e-commerce transaction volumes demonstrates an active digital trade landscape. Sustained economic growth and relatively low tariff levels provide advantageous conditions for international trade, while a high internet penetration rate offers a solid foundation for the development of e-commerce.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eDescriptive Statistics (China)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"6\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eN\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eMinimum\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eMaximum\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eMean\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eStd. Deviation\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIL\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e20.925\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e53.500\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e37.037\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e9.582\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e4.440\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e40.350\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e21.895\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e13.300\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e2.239\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e10.636\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e7.169\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e2.293\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e7.500\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e9.900\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e9.012\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e1.045\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e22.600\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e78.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e52.275\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e17.205\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eValid N (listwise)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eDescriptive Statistics (Brazil)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"6\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eN\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eMinimum\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eMaximum\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eMean\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eStd. Deviation\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIL\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e0.400\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e1.100\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e0.669\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e0.202\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e0.400\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e2.400\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e1.194\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e0.485\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e-3.546\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e7.528\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e1.676\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e3.132\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e11.100\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e13.700\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e13.200\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e0.809\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e \u003cp\u003e34.200\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e86.600\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e \u003cp\u003e60.557\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e \u003cp\u003e16.418\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eValid N (listwise)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e16\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eIn contrast, the performance of Brazilian SMEs in internationalization appears relatively limited, with export proportions significantly lower than those of China. The development of cross-border e-commerce also shows considerable disparities. Higher tariff levels may pose obstacles to international trade. Moreover, Brazil appears to face more challenges in promoting SME internationalization and e-commerce development compared to China's economic dynamism, despite having a relatively high internet penetration rate. However, with the continuous spread of global internet technologies and market evolution, Brazil still possesses potential growth opportunities in the field of internationalization.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec19\" class=\"Section2\"\u003e \u003ch2\u003e5.2 Correlation Analysis\u003c/h2\u003e \u003cp\u003eTables\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e and \u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e present the Pearson correlation coefficients of key variables for China and Brazil, respectively.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eParson Correlation (China)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eSIL\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eSIL\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.961\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.787\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.765\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e.992\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.961\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.814\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.749\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e.962\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.787\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.814\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e.633\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.784\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.765\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.749\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.633\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.782\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.992\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.962\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.784\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.782\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"7\" nameend=\"c7\" namest=\"c1\"\u003e \u003cp\u003e**. Correlation is significant at the 0.01 level (2-tailed).\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab5\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003ePearson Correlation (Brazil)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eSIL\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSIL\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.786**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.291**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.718**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e.646**\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.786**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.094**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.829**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e.886**\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGR\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.291**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.094**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.100**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.233**\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eMFN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.718**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.829**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.100**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.690**\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIP\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePearson Correlation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.756**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.86**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.233**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026minus;\u0026thinsp;.690**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSig. (2-tailed)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u0026lt;\u0026thinsp;.001\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"7\" nameend=\"c7\" namest=\"c1\"\u003e \u003cp\u003e**. Correlation is significant at the 0.01 level (2-tailed).\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eAs shown in Table\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e, the internationalization level of Chinese SMEs has a significant positive correlation with the development of cross-border e-commerce (r\u0026thinsp;=\u0026thinsp;0.961, p\u0026thinsp;\u0026lt;\u0026thinsp;.001) and internet penetration rate (r\u0026thinsp;=\u0026thinsp;0.992, p\u0026thinsp;\u0026lt;\u0026thinsp;.001). This indicates that e-commerce and internet infrastructure have played an important role in promoting SME internationalization. Conversely, SME internationalization is significantly negatively correlated with GDP growth rate (r = -0.787, p\u0026thinsp;\u0026lt;\u0026thinsp;.001) and the Most Favored Nation (MFN) tariff rate (r = -0.762, p\u0026thinsp;\u0026lt;\u0026thinsp;.001), suggesting that higher tariffs and lower GDP growth may hinder internationalization efforts.\u003c/p\u003e \u003cp\u003eIn both China and Brazil, the correlation coefficients among the independent variables are below problematic levels, confirming the absence of multicollinearity issues.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec20\" class=\"Section2\"\u003e \u003ch2\u003e5.3 Regression Analysis and Results\u003c/h2\u003e \u003cp\u003eIn the first stage of the regression analysis, we consider CBE as the dependent variable (Y), with GR, MFN, and IP as independent variables. A linear regression is performed to obtain predicted estimates. The second stage employs SIL as the dependent variable and the first stage's predicted estimates as independent variables for the linear regression.\u003c/p\u003e \u003cdiv id=\"Sec21\" class=\"Section3\"\u003e \u003ch2\u003e5.3.1 First-Stage Regression Analysis\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab6\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eSummary of First-Stage Regression Results (Cragg-Donald Statistic)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"6\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eItem\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eR\u0026sup2;\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003ePartial R\u0026sup2;\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eShea\u0026rsquo;s R\u0026sup2;\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eF-statistic F (3,12)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003ep-value\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eChina: CBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.935\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.935\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.935\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e57.365\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eBrazil: CBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.881\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.881\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.881\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e29.593\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eIn the first-stage regression analysis for China and Brazil, the models exhibit high robustness and validity. For China, the model's R\u003csup\u003e2\u003c/sup\u003e value is 0.935, indicating that the independent variables explain 93.5% of the variance in cross-border e-commerce, demonstrating strong explanatory power. Additionally, the partial R\u003csup\u003e2\u003c/sup\u003e and Shea's R\u003csup\u003e2\u003c/sup\u003e values are both 0.935, further confirming the strong correlation between the control variables and the endogenous variable. The F-statistic is 57.365 with a p-value of 0.000, highly significant at the 1% level, suggesting that the independent variables have a significant impact on CBE and that there is no issue of weak instrumental variables.\u003c/p\u003e \u003cp\u003eSimilarly, Brazil's model shows comparable results, with an R\u0026sup2; value of 0.911, meaning that 91.1% of the variance in CBE is explained by the independent variables. The partial R2 and Shea's R2 are also 0.911, affirming the relevance of the control variables. Brazil's F-statistic is 29.593 with a p-value of 0.000, significant at the 1% level, indicating that the control variables are effective and highly correlated with CBE.\u003c/p\u003e \u003cp\u003eIn conclusion, the models for China and Brazil both demonstrate a strong and significant relationship between the control variables and the endogenous variable CBE. This not only validates the effectiveness of the two-stage least squares estimation but also supports the attainment of reliable and valid estimation results in the second-stage regression analysis.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec22\" class=\"Section3\"\u003e \u003ch2\u003e5.3.2 TSLS Regression Analysis\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab7\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eTSLS model analysis results (n\u0026thinsp;=\u0026thinsp;16) (China)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"9\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c9\" colnum=\"9\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colspan=\"2\" nameend=\"c3\" namest=\"c2\"\u003e \u003cp\u003eNon-standardized Coef.\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003et\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003ep\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003e95% CI\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eR\u003csup\u003e2\u003c/sup\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c8\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eAdjust R\u003csup\u003e2\u003c/sup\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c9\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eWald χ\u003csup\u003e2\u003c/sup\u003e\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eB\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStd. Err.\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003econstant\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e20.907\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.328\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e15.745\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e18.305\u0026thinsp;~\u0026thinsp;23.510\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.920\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e0.914\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e \u003cp\u003eχ\u003csup\u003e2\u003c/sup\u003e(1)\u0026thinsp;=\u0026thinsp;195.254, p\u0026thinsp;=\u0026thinsp;0.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.737\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.053\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e13.973\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003csup\u003e**\u003c/sup\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.633\u0026thinsp;~\u0026thinsp;0.840\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"9\" nameend=\"c9\" namest=\"c1\"\u003e \u003cp\u003eNote: Explained variable\u0026thinsp;=\u0026thinsp;SIL\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"9\" nameend=\"c9\" namest=\"c1\"\u003e \u003cp\u003e\u003csup\u003e\u003cem\u003e*\u003c/em\u003e\u003c/sup\u003e\u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05 \u003csup\u003e**\u003c/sup\u003e\u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eIn China\u0026rsquo;s TSLS regression result in Table\u0026nbsp;\u003cspan refid=\"Tab7\" class=\"InternalRef\"\u003e7\u003c/span\u003e, the coefficient of determination (R\u0026sup2;) is 0.920, and the adjusted R\u0026sup2; is 0.914, indicating that the model explains 91.4% of the variation in SME internationalization. The unstandardized coefficient for the independent variable CBE is 0.737, which is highly significant at the 0.01 significance level. All other things being equal, we expect SMEs internationalization to increase by 0.737 units when CBE increases by one unit. Additionally, the Wald χ\u0026sup2; test results further confirm that the positive impact of CBE on SME internationalization is statistically significant, and the overall model fit is quite satisfactory.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab8\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 8\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eTSLS model analysis results (n\u0026thinsp;=\u0026thinsp;16) (Brazil)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"9\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c9\" colnum=\"9\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colspan=\"2\" nameend=\"c3\" namest=\"c2\"\u003e \u003cp\u003eNon-standardized Coef.\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003et\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003ep\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003e95% CI\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c7\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eR\u003csup\u003e2\u003c/sup\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c8\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eAdjust R\u003csup\u003e2\u003c/sup\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c9\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eWald χ\u003csup\u003e2\u003c/sup\u003e\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eB\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStd. Err.\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003econstant\u003c/em\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.393\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.136\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e2.885\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.004**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.126\u0026thinsp;~\u0026thinsp;0.659\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.704\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e0.886\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e \u003cp\u003eχ\u003csup\u003e2\u003c/sup\u003e(1)\u0026thinsp;=\u0026thinsp;27.711, p\u0026thinsp;=\u0026thinsp;0.000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCBE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.231\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.107\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e2.164\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000**\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.022\u0026thinsp;~\u0026thinsp;0.441\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"9\" nameend=\"c9\" namest=\"c1\"\u003e \u003cp\u003eNote: Explained variable\u0026thinsp;=\u0026thinsp;SIL\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"9\" nameend=\"c9\" namest=\"c1\"\u003e \u003cp\u003e\u003csup\u003e\u003cem\u003e*\u003c/em\u003e\u003c/sup\u003e\u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.05 \u003csup\u003e**\u003c/sup\u003e\u003cem\u003ep\u003c/em\u003e\u0026thinsp;\u0026lt;\u0026thinsp;0.01\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eIn Brazil\u0026rsquo;s TSLS regression result shows in Table\u0026nbsp;\u003cspan refid=\"Tab8\" class=\"InternalRef\"\u003e8\u003c/span\u003e, R\u0026sup2; is 0.704, and the adjusted R\u0026sup2; is 0.686, meaning the model explains 68.6% of the variation in SME internationalization. The unstandardized coefficient for the independent variable CBE is 0.231, also significant at the 0.01 level, indicating that it positively influences the internationalization of Brazilian SMEs. The Wald χ\u0026sup2; test results show significance, further validating the impact of CBE on SMEs internationalization in Brazil.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec23\" class=\"Section3\"\u003e \u003ch2\u003e5.3.3 Discussion\u003c/h2\u003e \u003cp\u003eThe findings demonstrate that cross-border e-commerce is an important independent factor enhancing the internationalization efforts of SMEs in both countries. This data contributes to a better understanding of how CBE facilitates SMEs\u0026rsquo; global expansion. However, comparing the TSLS model results between the two nations reveals notable differences.\u003c/p\u003e \u003cp\u003eThe R\u0026sup2; and adjusted R\u0026sup2; values for China's model exceed those of Brazil\u0026rsquo;s, indicating that the former more effectively elucidates the variation in the internationalization of SMEs. This suggests that SMEs in China receive greater support for internationalization due to the rapid growth of cross-border e-commerce. In recent years, the Chinese government has established comprehensive cross-border e-commerce pilot zones and introduced a series of supportive policies, lowering the barriers for enterprises to participate in international trade. Measures such as tax incentives and customs facilitation (Tian et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) have reduced operational costs for businesses. The widespread application of digital technologies like artificial intelligence and big data has improved transaction efficiency and security, enabling SMEs to more precisely grasp market demand and achieve rapid product iteration and innovation.\u003c/p\u003e \u003cp\u003eAdditionally, China's investments in international e-commerce infrastructure\u0026mdash;such as establishing overseas warehouses and enhancing logistics networks\u0026mdash;have significantly lowered logistics costs and improved delivery efficiency (Hu \u0026amp; Xu, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). These initiatives have enabled SMEs to become more globally competitive and to access markets that were previously unreachable. It is believed that improving e-commerce standards and regulations, along with fostering greater international cooperation, will make the expansion of SMEs in cross-border e-commerce more standardized and sustainable.\u003c/p\u003e \u003cp\u003eThe substantial disparity in CBE coefficients (0.737\u0026thinsp;\u0026gt;\u0026thinsp;0.231) can be attributed to the differing economies and internationalization strategies of China and Brazil. The huge domestic market and strong industrial base in China provide SMEs with plentiful resources and lower production costs. Meanwhile, the Chinese government has launched several programs to facilitate SMEs\u0026rsquo; access to new international markets through e-commerce platforms, offering substantial support for cross-border e-commerce growth. Chinese SMEs often turn to digital marketing and social media to broaden their global reach (Hu et al., \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eBy contrast, despite Brazil's enormous untapped potential, the country's e-commerce sector is still in its early stages of development. It is possible that the effectiveness of internationalization of SMEs will be constrained by a lack of a suitable logistical infrastructure and limited electronic payment systems (Pitta et al., \u003cspan citationid=\"CR46\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Consequently, numerous Brazilian SMEs adopt a more prudent strategy for worldwide expansion, favoring conventional trade channels over internet tools. Compared to China, cross-border e-commerce in Brazil exerts a lesser influence on the internationalization of SMEs due to various factors, including inadequate client trust, sluggish adoption of electronic payments, and other comparable challenges (Veiga et al., 2024). Based on the above results, the research hypotheses of this study are derived as:\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab9\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 9\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eSummary of the hypotheses of the empirical results\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"3\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eHypothesis\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eResults of China\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eResults of Brazil\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eH1: Cross-border e-commerce development has significantly contributed to the internationalization of SMEs\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eH2: GDP growth rates contribute significantly to the level of internationalization of SMEs.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026times;\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eH3: The reduction in tariff rates has significantly contributed to the internationalization of SMEs.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eH4: Increased Internet penetration enhances the role of cross-border e-commerce in driving the internationalization of SMEs.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u0026radic;\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colspan=\"3\" nameend=\"c3\" namest=\"c1\"\u003e \u003cp\u003eNote: \u0026ldquo;\u0026times;\u0026rdquo; indicates that the research hypothesis is not empirically supported, and \u0026ldquo;\u0026radic;\u0026rdquo; indicates that the research hypothesis is empirically supported.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003c/div\u003e \u003cdiv id=\"Sec24\" class=\"Section2\"\u003e \u003ch2\u003e5.4 Exogeneity Tests\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab10\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 10\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eOveridentifying Restrictions Tests (China)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"4\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eTest\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eNull Hypothesis\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eTest Result\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eConclusion\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSargan Test\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eAll control variables are exogenous\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eχ\u003csup\u003e2\u003c/sup\u003e(2)\u0026thinsp;=\u0026thinsp;1.421, \u003cem\u003ep\u003c/em\u003e\u0026thinsp;=\u0026thinsp;0.492\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eAccept the null hypothesis\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eBasmann Test\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eAll control variables are exogenous\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eχ\u003csup\u003e2\u003c/sup\u003e(2)\u0026thinsp;=\u0026thinsp;1.169, \u003cem\u003ep\u003c/em\u003e\u0026thinsp;=\u0026thinsp;0.557\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eAccept the null hypothesis\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab11\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 11\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eOveridentifying Restrictions Tests (Brazil)\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"4\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eTest\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eNull Hypothesis\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eTest Result\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eConclusion\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSargan Test\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eAll control variables are exogenous\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eχ\u003csup\u003e2\u003c/sup\u003e(2)\u0026thinsp;=\u0026thinsp;3.297, \u003cem\u003ep\u003c/em\u003e\u0026thinsp;=\u0026thinsp;0.192\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eAccept the null hypothesis\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eBasmann Test\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eAll control variables are exogenous\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eχ\u003csup\u003e2\u003c/sup\u003e(2)\u0026thinsp;=\u0026thinsp;3.114, \u003cem\u003ep\u003c/em\u003e\u0026thinsp;=\u0026thinsp;0.211\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eAccept the null hypothesis\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eOveridentification tests are utilized to assess whether the instrumental variables satisfy the exogeneity condition\u0026mdash;that is, whether these instruments are uncorrelated with the model's residuals. In Tables\u0026nbsp;\u003cspan refid=\"Tab9\" class=\"InternalRef\"\u003e9\u003c/span\u003e and \u003cspan refid=\"Tab10\" class=\"InternalRef\"\u003e10\u003c/span\u003e, both the Sargan test and the Basmann test have the null hypothesis that \u0026ldquo;all instrumental variables are exogenous.\u0026rdquo; The test results indicate that all p-values exceed 0.05; therefore, we accept the null hypothesis, confirming that the instrumental variables are indeed exogenous.\u003c/p\u003e \u003cp\u003eGiven that the model presents endogeneity issues, it is necessary to employ instrumental variable methods (Wooldridge, \u003cspan citationid=\"CR57\" class=\"CitationRef\"\u003e2002\u003c/span\u003e). Using the TSLS approach is crucial and suitable since the instruments satisfy the exogeneity condition. This approach effectively addresses the endogeneity problem, yielding consistent and efficient parameter estimates, thereby validating the rationality and correctness of using the TSLS method in our analysis.\u003c/p\u003e \u003c/div\u003e"},{"header":"6. Conclusions, Implications and Future Research","content":"\u003cp\u003eTo empirically examine the impact of cross-border e-commerce on the internationalization level of SMEs in BRICS countries, this study adopts a Two-Stage Least Squares model. The outcomes reveal that cross-border e-commerce significantly supports SMEs in expanding globally across these nations. Based on the results, it seems that these nations have successfully internationalized their SMEs via cross-border e-commerce. The general trend is encouraging, even though individual challenges differ among nations.\u003c/p\u003e \u003cdiv id=\"Sec26\" class=\"Section2\"\u003e \u003ch2\u003e6.1 Conclusions\u003c/h2\u003e \u003cp\u003eThrough an in-depth analysis of the cases of China and Brazil, we found that, although cross-border e-commerce generally promotes the internationalization of SMEs across BRICS countries, the extent of its impact and the underlying mechanisms differ significantly in each country. These similarities and differences will be covered in the following discussion.\u003c/p\u003e \u003cp\u003eFirst, models show good explanatory power in first-stage regression results; control factors explain CBE strongly. The growth rate of GDP, the rate of most-favored-nation tariffs, and the rate of internet penetration adequately describe CBE operations in China, Brazil, and other BRICS nations. This finding is consistent with the research of Pan et al. (\u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) and Cassio and Magno (2022). Despite differences in economic environments and policy support levels, the control variables significantly predict CBE levels in BRICS, further validating their explanatory power in analyzing cross-border e-commerce. This result confirms Hypothesis 1 of this study.\u003c/p\u003e \u003cp\u003eSecondly, in the second-stage TSLS models, results show that high tariffs increase trade costs, impede the internationalization process of SMEs in BRICS countries, and weaken their international competitiveness (Morais \u0026amp; Ferreira, 2020). Simultaneously, there is a significant positive correlation between internet penetration rates and SMEs internationalization. This indicates that improvements in digital infrastructure can effectively lower barriers for SMEs\u0026rsquo; entering international markets. Particularly in regions with widespread internet access, cross-border e-commerce can more effectively assist SMEs in achieving international expansion. These findings confirm hypotheses 3 and 4 in this paper.\u003c/p\u003e \u003cp\u003eHowever, research has revealed that while CBE significantly promotes the internationalization of SMEs, there are notable differences among countries. Specifically, the results indicate that China's cross-border e-commerce plays a more pronounced role in advancing SMEs internationalization.\u003c/p\u003e \u003cp\u003eThis is closely related to China's mature e-commerce infrastructure and supportive policies. The Chinese government encourages the development of cross-border e-commerce through initiatives like establishing free trade zones and promoting the \"Belt and Road\" initiative. Continuous investment in logistics, payment systems, and digital infrastructure provides SMEs with greater capacity to rapidly participate in international markets. In contrast, Brazil's infrastructure and payment systems are relatively underdeveloped, limiting the international expansion capabilities of its SMEs (Aurazo \u0026amp; Gasmi, \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Brazil's logistics primarily rely on two major railway lines and aviation networks; multiple time zones, vast geographical spans, and cold weather pose significant challenges to the stability and timeliness of logistics. Additionally, Brazil's tax policies are not particularly favorable to cross-border e-commerce\u0026mdash;for example, purchases over \u003cspan\u003e$\u003c/span\u003e50 are subject to a 60% tax\u0026mdash;further increasing the difficulty for SMEs to internationalize (Blegen, \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eFurthermore, China's digital payment user base has reached 853\u0026nbsp;million, accounting for 86.5% of internet users, reflecting the unique advantages of digital payments in advancing inclusive financial development. Digital payments promote inclusive finance by providing payment services that meet the needs of both supply and demand sides, lowering the threshold for financial services. Additionally, fintech enhances the coverage and precision of inclusive credit. While Brazil has made some progress in digital finance\u0026mdash;such as launching the rapid payment system PIX and exploring digital currencies\u0026mdash;the development of its cross-border e-commerce still faces challenges. Brazil's banking and fintech account penetration rate stands at 84%, surpassing the regional average of 73.5%, indicating potential in digital financial development (Aduba et al., \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eOn the other hand, when analyzing the correlation between SME internationalization and GDP growth rates in China and Brazil, some interesting phenomena emerge. The GDP growth rate in China exhibits a negative correlation with the level of SMEs internationalization. The shift in China's economic growth model could potentially explain it. As the economy transitions from investment-driven to consumption-driven, domestic market competition intensifies. Many SMEs may prefer to seek opportunities in the domestic market rather than allocate resources to international markets. Therefore, even with high GDP growth rates, this does not necessarily promote SMEs internationalization; enterprises might reduce their international efforts due to the attractiveness of the domestic market.\u003c/p\u003e \u003cp\u003eIn contrast, Brazilian SMEs benefit considerably from the country\u0026rsquo;s growing GDP. Over time, economic progress driven by policy reforms and market liberalization has created more opportunities for these businesses to reach new markets. As the economy expands, SMEs find it easier to explore international growth, with better access to funding and deeper market insights.\u003c/p\u003e \u003cp\u003eMoreover, Brazil has fortified commercial contacts with several nations in recent years, augmenting the internationalization potential of its SMEs. Consequently, GDP growth in Brazil not only signifies overall economic vitality but also facilitates the internationalization of SMEs. This result confirms that Hypothesis 2 of this paper is conditionally valid rejected in China\u0026rsquo;s case but confirmed in Brazil\u0026rsquo;s. In addition, Brazil\u0026rsquo;s economic reforms since the 1990s aim to reduce state intervention and promote marketization and democratization. These reforms may have provided SMEs with more market opportunities and flexibility, facilitating their internationalization. Simultaneously, regulatory reforms, technological advancements, and changing user habits may drive its rapid fintech development, providing SMEs with more financial services and tools to support their international efforts.\u003c/p\u003e \u003cp\u003eConsidering all factors, China's advanced digital infrastructure and governmental support have endowed it with superior impact in cross-border e-commerce compared to the other BRICS nations. Despite ongoing obstacles, Brazil's SMEs are increasingly benefiting from enhanced support for international expansion due to financial advancements and changes in government policy. To bolster the global advancement of SMEs, the BRICS nations must improve relevant legislation and infrastructure, especially in digitization and logistics.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec27\" class=\"Section2\"\u003e \u003ch2\u003e6.2 Implications for BRICS Countries\u003c/h2\u003e \u003cp\u003eBy honing down on some areas, the BRICS countries can encourage SMEs better internationalize via cross-border e-commerce platforms.\u003c/p\u003e \u003cp\u003eThe advancement of SME internationalization can only be achieved through the improvement of digital infrastructure and the expansion of internet penetration. There is a stumbling block to the development of cross-border e-commerce in certain BRICS members, like South Africa and India, due to their present internet coverage and logistical infrastructure shortcomings. Hence, these countries should put more money into their networks, logistics, and SMEs don't have a hard time breaking into global markets.\u003c/p\u003e \u003cp\u003eAdditionally, in order to help SMEs expand internationally, policy backing is crucial. Improving tariff barriers and regulatory policies should be the priority of the BRICS states. Small and medium-sized enterprises in Russia and Brazil face substantial obstacles when trying to participate in cross-border e-commerce due to high tariffs and complicated tax systems. One way to help businesses overcome trade obstacles is to simplify import and export processes and institute policies to cut tariffs. Advancing the establishment of free trade zones will enhance trade relations among BRICS nations and promote the internationalization of SMEs.\u003c/p\u003e \u003cp\u003eThe widespread adoption and innovation of financial technology significantly contribute to the internationalization of SMEs. The development of fintech in India and Brazil has begun to positively influence cross-border payments and credit support; however, its coverage is still limited. Promoting digital payment systems and inclusive financial policies can reduce the costs related to SMEs' participation in international trade, facilitating their expansion into global markets more effectively.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec28\" class=\"Section2\"\u003e \u003ch2\u003e6.3 Future Research\u003c/h2\u003e \u003cp\u003eResearch in the future can provide light on the interplay between internationalization of SMEs and cross-border e-commerce from a variety of perspectives. First, all BRICS member nations should be included in research more thoroughly, especially the ones with the most unequal digital infrastructure and policy backing. It would clarify the impact of these variations on the global paths taken by SMEs. Second, in the context of cross-border e-commerce, micro-level data used at the enterprise level might reveal the tactics and habits of individual businesses. As an example, when it comes to market entry strategies, organizational restructuring, and resource allocation, SMEs from different nations could show diverse responses. The precise ways in which cross-border e-commerce affects internationalization can be better understood with a solid grasp of these differences. Finally, as new technologies emerge, studies should zero in on how exactly these tools may help SMEs expand their operations abroad. The function of blockchain technology in safeguarding cross-border payment systems is one example, while AI aids SMEs in streamlining supply chain management is another. These state-of-the-art technologies have the potential to greatly reduce the obstacles that small and medium-sized enterprises face when trying to expand internationally, which would give the economies of the BRICS nations a much-needed boost.\u003c/p\u003e \u003c/div\u003e"},{"header":"Declarations","content":"\u003cp\u003eAcknowledgement\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eWe would like to express our gratitude to the institutions and colleagues who supported this research. We are particularly indebted to professors for their insightful guidance and rigorous feedback. We are also grateful to the organizations in BRICS countries that facilitated access to essential information. Their invaluable support and collaboration made this study possible.\u0026nbsp;\u003c/p\u003e\n\u003cp\u003eCompeting interests\u003c/p\u003e\n\u003cp\u003eThe authors have no competing interests to declare that are relevant to the content of this article.\u003c/p\u003e\n\u003cp\u003eData Availability\u003c/p\u003e\n\u003cp\u003eData used in this research are available upon reasonable request.\u003c/p\u003e\n\u003cp\u003eEthical approval/ Informed consent\u003c/p\u003e\n\u003cp\u003eThis article does not contain any studies with human participants performed by any of the authors.\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\n\u003cli\u003eAduba J, Asgari B, Izawa H (2023) Does FinTech penetration drive financial development? Evidence from panel analysis of emerging and developing economies. 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Science \u0026amp; Technology Progress and Policy 41(1):1-10. \u003c/li\u003e\n\u003c/ol\u003e"},{"header":"Footnotes","content":"\u003col\u003e\u003cli\u003e \u003cspan\u003e Sources from International Telecommunication Union.\u003c/span\u003e \u003c/li\u003e\u003cli\u003e \u003cspan\u003e Sources from China Ministry of Commerce.\u003c/span\u003e \u003c/li\u003e\u003cli\u003e \u003cspan\u003e Sources from Shanghai Academy of Social Sciences.\u003c/span\u003e \u003c/li\u003e\u003cli\u003e \u003cspan\u003e Sources from eMarketer.\u003c/span\u003e \u003c/li\u003e\u003cli\u003e\u003cspan\u003e Sources from World Bank.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e \u003cspan\u003e Sources from Ministry of Commerce People's Republic.\u003c/span\u003e \u003c/li\u003e\u003cli\u003e \u003cspan\u003e Sources from Associa\u0026ccedil;\u0026atilde;o Brasileira de Com\u0026eacute;rcio Eletr\u0026ocirc;nico.\u003c/span\u003e \u003c/li\u003e\u003cli\u003e\u003cspan\u003e Sources from China Electronic Commerce Association.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003e Sources from India Brand Equity Foundation.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003e Sources from Statista.\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Cross-Border E-Commerce, Small and Medium-Sized Enterprises, Internationalization, BRICS","lastPublishedDoi":"10.21203/rs.3.rs-5645142/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-5645142/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe study aims to examine how cross-border e-commerce has influenced the internationalization of small and medium-sized enterprises (SMEs) in BRICS countries from 2008 to 2023. It places particular emphasis on China and Brazil, given their significance as representative economies within the group. A Two-Stage Least Squares model is employed to reveal that cross-border e-commerce substantially enhances the internationalization of SMEs, although the effects differ. Due to developed e-commerce infrastructure, a supportive legal environment, widespread adoption of digital payments, and sizeable investments in logistics and technology, the impact is particularly strong in China. Comparatively, Brazil faces challenges, including limited infrastructure and high tariff barriers, which hinder the potential of cross-border e-commerce to promote SMEs’ internationalization effectively. The results indicate that GDP growth supports the internationalization of SMEs in certain BRICS nations, possibly due to varying economic conditions and transitions within these economies. Internet penetration rates show a positive correlation with SMEs’ internationalization in BRICS countries, which highlighting the crucial role of digital infrastructure; while high tariffs are widely acknowledged as a major barrier, limiting SMEs’ ability to leverage cross-border e-commerce effectively. The research suggests that BRICS countries require customized policies to strengthen digital infrastructure and reduce trade barriers, enabling SMEs to reach global markets more effectively. Future studies should involve detailed analyses of each BRICS member, exploring how advancing technologies such as artificial intelligence and blockchain could further support SMEs’ internationalization through cross-border e-commerce.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eJEL Classification:\u003c/strong\u003e F10, L81\u003c/p\u003e","manuscriptTitle":"Does Cross-border E-commerce Promote the Internationalization of SMEs in BRICS Countries?— Evidence From China and Brazil","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-01-01 07:16:49","doi":"10.21203/rs.3.rs-5645142/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"a0bb6a43-af02-4524-b497-26bb70fdf0d3","owner":[],"postedDate":"January 1st, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-02-11T18:23:29+00:00","versionOfRecord":[],"versionCreatedAt":"2025-01-01 07:16:49","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-5645142","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-5645142","identity":"rs-5645142","version":["v1"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}