Digitalization Strategies in ASEAN MSMEs Harnessing AI for Competitive Advantage in the Global Value Chain: A Model Conceptual

Agapito Barros, Refius Pradipta Setyanto, Eman Sulaiman


The implementation of artificial intelligence (AI) and digitalization in ASEAN MSMEs has garnered significant attention in optimizing their contributions to the global value chain. This study aims to develop a conceptual model that analyzes digitalization strategies in ASEAN MSMEs, harnessing AI to attain competitive advantage within the global value chain. This model integrates concepts from business strategy theory, information technology, and global economics. The primary contribution of this research lies in conceptualizing a comprehensive view of how ASEAN MSMEs can embrace AI as a primary driver in formulating effective digital strategies, thus enabling them to compete in an increasingly interconnected and competitive global marketplace. Keywords: Digitalization, Artificial Intelligence, ASEAN MSMEs, Global Value Chain, Business Strategy, Competitive Advantage, Information Technology, Global Economics.

Full Text:



Allioui, H., & Mourdi, Y. (2023). Unleashing the Potential of AI: Investigating Cutting-Edge

Technologies That Are Transforming Businesses. International Journal of Computer Engineering

and Data Science (IJCEDS), 3(2), 1–12.

Autio, E., Nambisan, S., Thomas, L. D. W., & Wright, M. (2018). Digital affordances, spatial

affordances, and the genesis of entrepreneurial ecosystems. Strategic Entrepreneurship Journal,

(1), 72–94.

Bapna, R., Jank, W., Shmueli, G., & Zhang, H. (2017). Turbulent trading: A dynamic forecasting

approach to predicting intraday stock returns and trading volumes. MIS Quarterly, 41(1), 105–139.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),


Benbya, H., Davenport, T. H., & Pachidi, S. (2020). Artificial intelligence in organizations: Current state

and future opportunities. MIS Quarterly Executive, 19(4).

Bergmann, M., Brück, C., Knauer, T., & Schwering, A. (2020). Digitization of the budgeting process:

determinants of the use of business analytics and its effect on satisfaction with the budgeting

process. Journal of Management Control, 31(1–2), 25–54.

Bharadwaj, A. S., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy:

Toward a next generation of insights. MIS Quarterly, 47(2), 471–482.

Buciuni, G., & Mola, L. (2014). How do entrepreneurial firms establish cross-border relationships? A

global value chain perspective. Journal of International Entrepreneurship, 12, 67–84.

Cui, Y., Kara, S., & Chan, K. C. (2020). Manufacturing big data ecosystem: A systematic literature

review. Robotics and Computer-Integrated Manufacturing, 62, 101861.

Curtis, H., Hogeveen, B., Kang, J., Le Thu, H., Rajagopalan, R. P., & Ray, T. (2022). Digital Southeast


Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business

Review, 96(1), 108–116.

Duan, Y., Edwards, J. S., & Dwivedi, Y. K. (2019). Artificial intelligence for decision making in the era

of Big Data–evolution, challenges and research agenda. International Journal of Information

Management, 48, 63–71.

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management

Journal, 21, 1105–1121.

Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:

Competitiveness and globalisation. Cengage AU.

Jatmiko, B., Udin, U., Raharti, R., Laras, T., & Ardhi, K. F. (2021). Strategies for MSMEs to achieve

sustainable competitive advantage: The SWOT analysis method. The Journal of Asian Finance,

Economics and Business, 8(3), 505–515.

Kano, L., Tsang, E. W. K., & Yeung, H. W. (2020). Global value chains: A review of the multidisciplinary literature. Journal of International Business Studies, 51, 577–622.

Khalil, M. A. T., Dominic P, D. D., Hassan, M. F., & Mushtaq, A. (2011). An in depth analysis of

ecosystems & blueprint of digital business ecosystem (DBE) framework for Malaysian SMEs.

Computer Science Journal, 1(1), 65–78.

Kumar, N., Kumar, G., & Singh, R. K. (2021). Big data analytics application for sustainable

manufacturing operations: analysis of strategic factors. Clean Technologies and Environmental

Policy, 23, 965–989.

Leal-Rodríguez, A. L., Sanchís-Pedregosa, C., Moreno-Moreno, A. M., & Leal-Millán, A. G. (2023).

Digitalization beyond technology: Proposing an explanatory and predictive model for digital culture

in organizations. Journal of Innovation & Knowledge, 8(3), 100409.

Lee, G., Trimi, S., & Kim, C. (2019). The impact of digitalization and artificial intelligence on the

workforce: The case of South Korea. Technological Forecasting and Social Change, 149.

Lindner, R., Wald, A., Gräff, L., & Zelewski, S. (2017). Exploring the impact of digitalization on

business models. Procedia Computer Science, 120, 479–486.

Lwesya, F. (2021). SMEs’ competitiveness and international trade in the era of Global Value Chains

(GVCs) in Tanzania: An assessment and future challenges.

Malik, A., Budhwar, P., & Kazmi, B. A. (2022). Artificial intelligence (AI)-assisted HRM: Towards an

extended strategic framework. In Human Resource Management Review (p. 100940). Elsevier.

Mendoza, A., & Villafuerte, J. (2023). The State of Play of ASEAN Global Value Chains. ASEAN AND


Nelly, S. (2021). Digitalization as a strategy for the revitalization of micro, small and medium enterprises

(MSMEs) during the COVID-19 pandemic. Annals of the Romanian Society for Cell Biology, 25(6),


Nguyen, T. M. T., Nguyen, T. T. A., Nguyen, T. T. V., & PHAM, H. G. (2021). Foreign direct

investment-small and medium enterprises linkages and global value chain participation: evidence

from Vietnam. The Journal of Asian Finance, Economics and Business, 8(3), 1217–1230.

Olazo, D. B. (2023). Marketing competency, marketing innovation and sustainable competitive advantage

of small and medium enterprises (SMEs): a mixed-method analysis. Asia Pacific Journal of

Marketing and Logistics, 35(4), 890–907.

Pal, S., Kumari, K., Kadam, S., & Saha, A. (2023). THE AI REVOLUTION. IARA Publication.

Peng, M. W. (2004). Outside directors and firm performance during institutional transitions. Strategic

Management Journal, 25(5), 453–471.

Porter, M. E. (1990). New global strategies for competitive advantage. Planning Review, 18(3), 4–14.

Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance.

simon and schuster.

Proksch, D., Rosin, A. F., Stubner, S., & Pinkwart, A. (2021). The influence of a digital strategy on the

digitalization of new ventures: The mediating effect of digital capabilities and a digital culture.

Journal of Small Business Management, 1–29.

Rana, S., Prashar, S., Barai, M. K., & Hamid, A. B. A. (2021). Determinants of international marketing

strategy for emerging market multinationals. International Journal of Emerging Markets, 16(2),


Ravitch, S. M., & Carl, N. M. (2019). Qualitative research: Bridging the conceptual, theoretical, and

methodological. Sage Publications.

Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social

responsibility contribute to firm financial performance? The mediating role of competitive

advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350.

Siebel, T. M. (2019). Digital transformation: survive and thrive in an era of mass extinction.


Sjachriatin, E., Riyadi, S., & Mujanah, S. (2023). The effects of knowledge-oriented leadership style,

digital transformation, and human resource development on sustainable competitive advantage in

East Java MSMEs. Uncertain Supply Chain Management, 11(4), 1685–1694.

Soni, N., Sharma, E. K., Singh, N., & Kapoor, A. (2019). Impact of artificial intelligence on businesses:

from research, innovation, market deployment to future shifts in business models. ArXiv Preprint


Tyagi, A. K., & Chahal, P. (2022). Artificial intelligence and machine learning algorithms. In Research

Anthology on Machine Learning Techniques, Methods, and Applications (pp. 421–446). IGI Global.

van Merriënboer, M., Verver, M., & Stam, W. (2023). Escaping the shadow of the past: historical context

and generational identity work among young entrepreneurs in Phnom Penh’s nascent start-up scene.

Entrepreneurship & Regional Development, 35(1–2), 49–77.

Wade, M., & Hulland, J. (2004). Review: The resource-based view and information systems research:

Review, extension, and suggestions for future research. MIS Quarterly, 28(1), 107–142


  • There are currently no refbacks.