Enhancing International SME Competitiveness through Machine Learning Driven Market Analysis : A Mixed Methods Approach
DOI:
https://doi.org/10.61132/ijema.v2i3.676Keywords:
Global Competitiveness, International MSMEs, Machine Learning, Market Analysis, Mixed-MethodsAbstract
Despite their 45% contribution to the global economy, international micro, small, and medium-sized enterprises (MSMEs) face considerable obstacles in enhancing their global competitiveness because they lack the resources and access to efficient market analysis (OECD, 2025). In order to optimize cross-border MSME market analysis, this research attempts to construct a machine learning (ML) model coupled with a mixed-methods approach. A combination of quantitative (XGBoost and SEM-AMOS were used to analyze transaction data of 500 Indonesian export MSMEs 2020–2024) and qualitative (interviews with 15 MSME players) methods showed that the XGBoost model achieved 89% accuracy in predicting market trends, with key variables including exchange rate fluctuations (19%) and social media sentiment (28%). According to qualitative findings, the ML model does not identify cross-border regulatory constraints that 65% of MSMEs must deal with. These results validate market intelligence powered by AI as a strategic asset, extending the Resource-Based View paradigm. The significance of contextual adaptation and technological integration in the digital transformation of MSMEs is emphasized by this study.
Downloads
References
N. Arranz *et al.*, "SME internationalisation strategies," *J. Int. Bus. Innov.*, vol. 12, no. 3, pp. 45–67, 2023.
M. Bauer, C. van Dinther, and D. Kiefer, "AI adoption barriers in SMEs," *J. Technol. Adoption SMEs*, vol. 15, no. 1, pp. 78–95, 2023.
S. Benzidia *et al.*, "Integrating AI into business models," *J. Bus. Res.*, vol. 150, pp. 456–468, 2023.
A. Bunga and F. Muhammad, "Machine learning applications for Indonesian SMEs," *Indones. J. AI Appl.*, vol. 8, no. 2, pp. 112–129, 2023.
J. W. Creswell and V. L. Plano Clark, *Designing and Conducting Mixed Methods Research*, 4th ed. Thousand Oaks, CA: Sage Publications, 2022.
M. Fahmi *et al.*, "Digital transformation in ASEAN SMEs," in *Proc. ASEAN Bus. Conf.*, 2024, pp. 1–15.
Flowcast, "How machine learning can fix the SME credit gap," *Financial IT*, 2025. [Online]. Available: https://www.financialit.net
A. Gok, "SME challenges in emerging markets," *Int. J. SME Dev.*, vol. 3, no. 2, pp. 34–50, 2005.
Grand View Research, "Machine learning market growth report," 2025. [Online]. Available: https://www.grandviewresearch.com
J. F. Hair *et al.*, *Multivariate Data Analysis*, 9th ed. London, UK: Pearson Education, 2023.
D. Hertati and B. Iriyadi, "Technology adoption in Indonesian SMEs," *J. Technol. Adoption SMEs*, vol. 15, no. 1, pp. 78–95, 2023.
J. Johanson and J. E. Vahlne, "The internationalisation process of the firm," *J. Int. Bus. Stud.*, vol. 54, no. 3, pp. 401–420, 2023.
KBV Research, "Machine learning market analysis," 2030. [Online]. Available: https://www.kbvresearch.com
KIPPRA, *Economic Survey*, Kenya Institute for Public Policy Research and Analysis, 2006.
M. Kiveu and G. Ofafa, "Enhancing market access in Kenyan SMEs," *Int. J. SME Dev.*, vol. 11, no. 4, pp. 201–220, 2013.
A. Lahamid *et al.*, "AI-driven market analysis for SMEs," *Int. J. Bus. Anal.*, vol. 9, no. 4, pp. 201–220, 2023.
MarketsandMarkets, "Machine learning market growth report," 2024. [Online]. Available: https://www.marketsandmarkets.com
O. Aienloshan, "On-demand AI-driven predictive analysis," *J. Enterp. Resour. Plan.*, vol. 7, no. 2, pp. 89–104, 2025.
OECD, "SME digitalisation for competitiveness," OECD Publishing, 2025. [Online]. Available: https://doi.org/10.1787/xxx
S. Devotion and R. Abdi, "AI and innovation management," *Asia-Pac. J. Innov. Manag.*, vol. 18, no. 2, pp. 155–173, 2024.
Perfios.ai, "Bridging SME financing gap using AI," 2025. [Online]. Available: https://www.perfios.ai
R. R. Lianto, "Machine learning applications in SMEs," *J. Mach. Learn. Appl.*, vol. 7, no. 1, pp. 33–50, 2024.
M. Saleem *et al.*, "Sustainable digital transformation in SMEs," *Sustain. Digit. Transform. Rev.*, vol. 5, no. 3, pp. 89–107, 2024.
A. Sukoharjo *et al.*, "Data-driven decision-making in SMEs," *Indones. J. Data Sci.*, vol. 6, no. 2, pp. 77–94, 2024.
A. Suryana, "Global competitiveness of SMEs," *J. Glob. Bus.*, vol. 12, no. 1, pp. 45–60, 2023.
A. Tashakkori *et al.*, *Handbook of Mixed Methods Research*, 3rd ed. Thousand Oaks, CA: Sage Publications, 2023.
D. J. Teece, "Dynamic capabilities and strategic management," *Strateg. Manag. J.*, vol. 44, no. 2, pp. 112–135, 2023.
R. Verdiana, A. Fachir, and S. A’dhom, "AI applications in business," *J. AI Bus.*, vol. 11, no. 4, pp. 210–228, 2023.
R. Yeni *et al.*, "Digital economy challenges for SMEs," in *Proc. Int. Conf. Digit. Econ.*, 2024, pp. 1–12.
E. Yörük, "AI adoption in global SMEs," *Technol. Forecast. Soc. Change*, vol. 180, 121345, 2025. [Online]. Available: https://doi.org/10.1016/j.techfore.2025.121345
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 International Journal of Economics, Management and Accounting

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.


