Configuring the Dimensions of the Application of Financial Technologies in the Internationalization of Small and Medium Enterprises

Document Type : Research Paper

Authors

Department of Management, Faculty of Management, Economics and Engineering, University of Science and Technology, Tehran, Iran.

10.22059/jed.2025.389863.654491

Abstract

Objective: In the contemporary era, the development of international activities of small and medium-sized enterprises (SMEs) has been recognized as one of the essential factors in the economic growth of various societies. However, in developing countries, traditional financial resources are often insufficient to finance international trade. In this context, the emergence of financial technologies (FinTech) as innovative tools has created multiple alternative sources, including digital currencies, crowdfunding and more. Therefore, the aim of this study is to examine the role of financial technologies in financing SMEs, to, analyze the impact of these technologies on the internationalization of companies,, and to assess the ancillary aspects of this relationship.

Methodology: This research is applied in terms of its goal and qualitative in terms of data collection method. The strategy employed is experts' interviews. The sample studied consists of 11 companies that have used financial technologies for international trade, selected as the statistical population. Data collection was conducted through in-depth and semi-structured interviews with CEOs, investment managers, specialists, and individuals involved in project financing. The data obtained were analyzed using qualitative content analysis. Ultimately, a conceptual model was created to organize and integrate the research findings, comprising four sections: requirements, benefits, challenges, and outcomes of utilizing financial technologies in the internationalization of SMEs.

Research Findings: The findings indicate that the use of modern financial technologies such as digital currencies, crowdfunding, and currency risk management provides companies with opportunities to enhance the accuracy and speed of financial transactions, increase resilience against currency market fluctuations by accessing new financial resources, and improve competitive positions in the international trade landscape through greater transparency and security in financial processes. Additionally, to structure the data obtained from previous literature reviews and conducted interviews, the ancillary aspects of the relationship between financial technologies and international trade are classified into four sections: (1) Requirements, including investment in infrastructure and employee skill enhancement, (2) Benefits, including cost reduction and increased security and transparency, (3) Challenges, including regulatory and legal barriers such as anti-money laundering laws and lack of digital infrastructure, and (4) Outcomes, including revenue growth and an increase in the number of successful international projects.

Conclusion: Given the financial needs of SMEs and the necessity of optimizing resources and reducing costs for entering and maintaining a position in the global market, this study aims to provide a comprehensive insight into the impact of financial technologies on international trade in a conceptual framework. This framework identifies various aspects from pre-implementation to post-implementation. The most critical of these include investment in infrastructure and employee skill enhancement as vital requirements, and regulatory and legal barriers such as anti-money laundering laws as key challenges in the adoption and use of these technologies.

All applications have been discussed.

Keywords

Main Subjects

References

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Journal of Entrepreneurship Development
Volume 18, Issue 5
February 2026
Pages 57-78

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