Glocalizing the Micro-Enterprise: The Role of Region-of-Origin and Code-Switching in MSME Export Strategies
DOI:
https://doi.org/10.30737/risk.v7i1.7604Keywords:
Region-of-Origin, Internationalization of MSMEs, cross-cultural brand communication, Code Transfer Tactics, Live Commerce, Developing economiesAbstract
Conventional internationalization theories often fail to represent the dynamics of the expansion of Micro, Small, and Medium Enterprises (MSMEs) in developing countries because they ignore the disruption of digitalization and the urgency of local cultural adaptation. This research aims to explore and deconstruct the strategic mechanism of MSMEs in extracting regional identity (Region-of-Origin) and integrating it into global brand communication in the digital platform ecosystem. This study adopts a qualitative design through a multiple case study approach. Primary data was collected through in-depth semi-structured interviews with strategic decision-makers in five leading MSME exporters in Kediri City, East Java, including the craft and agro-industry sectors. Thematic analysis is applied systematically to reduce data and map patterns of cross-cultural communication strategies. The data analysis identified three main strategic findings: (1) the commodification of local sociocultural heritage into digital visual narratives functions as an authenticity signaling instrument that allows MSMEs to set premium prices; (2) dynamic interaction through live commerce platforms facilitates the formation of parasocial relationships that radically reduce psychological distance and trigger impulse purchase decisions from foreign buyers; and (3) the application of hybrid communication tactics through linguistic code-switching acting as a clever socio-symbolic mechanism in bridging the prestige of the global market with cultural authenticity. This study contributes an original contribution to the international business literature by constructing an integrative framework that synergizes the principles of Network Theory, dynamic capability agility, and cultural localization in the cyber landscape. This study emphatically shifts the focus of the literature from the macro effects of Country-of-Origin to the micro-power of Region-of-Origin, while offering an empirical and managerial blueprint for MSMEs in developing countries to capitalize on the narrative of regionality as a highly competitive intangible asset.
References
Adams, K., Attah-Boakye, R., Yu, H., Chu, I., & Ishaque, M. (2023). Competence and enterprise of management as drivers of early foreign listing of medium-sized emerging market multinationals (EMNEs) from Africa. Journal of Business Research, 158, 113660. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.113660
Afrifa, G. A., Amankwah-Amoah, J., Yamoah, F., Acquaye, A., Syllias, J., & Quaye, E. N. B. (2022). Regional development, innovation systems and service companies’ performance. Technological Forecasting and Social Change, 174, 121258. https://doi.org/https://doi.org/10.1016/j.techfore.2021.121258
Agu Igwe, P., & Ochinanwata, C. (2021a). How to Start African Informal Entrepreneurial Revolution? 22(4), 514–531. https://doi.org/10.1080/15228916.2021.1954447
Agu Igwe, P., & Ochinanwata, C. (2021b). How to Start African Informal Entrepreneurial Revolution? 22(4), 514–531. https://doi.org/10.1080/15228916.2021.1954447
Alam, A., Du, A. M., Rahman, M., Yazdifar, H., & Abbasi, K. (2022). SMEs respond to climate change: Evidence from developing countries. Technological Forecasting and Social Change, 185, 122087. https://doi.org/https://doi.org/10.1016/j.techfore.2022.122087
Albats, E., Alexander, A. T., & Cunningham, J. A. (2022). Traditional, virtual, and digital intermediaries in university-industry collaboration: exploring institutional logics and bounded rationality. Technological Forecasting and Social Change, 177, 121470. https://doi.org/https://doi.org/10.1016/j.techfore.2022.121470
Alford, P., & Jones, R. (2025). Digital entrepreneurial marketing bricolage: shaping technology-in-practice. International Journal of Entrepreneurial Behaviour and Research, 31(4), 1038–1061. https://doi.org/10.1108/IJEBR-07-2024-0746
Bodlaj, M., Kadic-Maglajlic, S., & Vida, I. (2020). Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs’ export growth. Journal of Business Research, 108, 466–475. https://doi.org/https://doi.org/10.1016/j.jbusres.2018.10.043
Broccardo, L., Zicari, A., Jabeen, F., & Bhatti, Z. A. (2023). How digitalization supports a sustainable business model: A literature review. Technological Forecasting and Social Change, 187, 122146. https://doi.org/https://doi.org/10.1016/j.techfore.2022.122146
Campos-García, I., Muñoz-Bullón, F., Sanchez-Bueno, M. J., & Zúñiga-Vicente, J. A. (2020). Exploring the exporting-downsizing link: Does the type of export strategy and firm efficiency in foreign markets matter? Journal of Business Research, 108, 324–336. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.10.074
Caon, M., Panetti, E., Meier, E., & Baldegger, R. J. (2025). The dual effect of COVID-19: Diverse digitalization approaches in micro- and small businesses. Journal of the International Council for Small Business, 6(2), 216–228. https://doi.org/10.1080/26437015.2024.2404184
Chen, S., Min, Q., & Xu, X. (2021). Investigating the Role of Social Identification on Impulse Buying in Mobile Social Commerce: A Cross-Cultural Comparison. Industrial Management & Data Systems, 121(12), 2571–2594. https://doi.org/10.1108/imds-09-2020-0550
Chiang, L.-L. L., & Yang, C.-S. (2018). Does country-of-origin brand personality generate retail customer lifetime value? A Big Data analytics approach. Technological Forecasting and Social Change, 130, 177–187. https://doi.org/10.1016/j.techfore.2017.06.034
Darma Putri, M. J., & Luthfia, A. (2025). Persuasive Linguistic Style and Customer Trust in TikTok Live Streaming Commerce: The Mediating Role of Customer Engagement. Paper Asia, 41(5), 513–529. https://doi.org/10.59953/paperasia.v41i5b.742
Diatmika, I. P. G., & Rahayu, S. (2025). Harnessing local creativity for technological advancement: Uncovering MSME innovations rooted in Sumbawa cultural wisdom. Edelweiss Applied Science and Technology, 9(4), 2561–2570. https://doi.org/10.55214/25768484.v9i4.6606
Dung, T. Q., Bonney, L. B., Adhikari, R., & Miles, M. P. (2021). Entrepreneurial orientation and vertical knowledge acquisition by smallholder agricultural firms in transitional economies: The role of interfirm collaboration in value-chains. Journal of Business Research, 137, 327–335. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.08.054
Fernández, A. H., & Lewis, M. C. (2019a). Brand Authenticity Leads to Perceived Value and Brand Trust. European Journal of Management and Business Economics, 28(3), 222–238. https://doi.org/10.1108/ejmbe-10-2017-0027
Fernández, A. H., & Lewis, M. C. (2019b). Brand Authenticity Leads to Perceived Value and Brand Trust. European Journal of Management and Business Economics, 28(3), 222–238. https://doi.org/10.1108/ejmbe-10-2017-0027
Fernández, A. H., & Lewis, M. C. (2019c). Brand Authenticity Leads to Perceived Value and Brand Trust. European Journal of Management and Business Economics, 28(3), 222–238. https://doi.org/10.1108/ejmbe-10-2017-0027
Fodouop Kouam, A. W. (2025). Toward Digital Transformation: Insights into Chinese Cross-Border E-Commerce SMEs During the COVID-19 Pandemic and the Post-Pandemic Era. SAGE Open, 15(1). https://doi.org/10.1177/21582440251318792
Fredrickson, B. L. (2001). The role of positive emotions in positive psychology: The broaden-and-build theory of positive emotions. American Psychologist, 56(3), 218.
Fu, J.-R., & Hsu, C.-W. (2023). Live-streaming shopping: the impacts of para-social interaction and local presence on impulse buying through shopping value. Industrial Management and Data Systems, 123(7), 1861–1886. https://doi.org/10.1108/IMDS-03-2022-0171
Gkypali, A., Love, J. H., & Roper, S. (2021). Export status and SME productivity: Learning-to-export versus learning-by-exporting. Journal of Business Research, 128, 486–498. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.02.026
Heredia Pérez, J. A., Geldes, C., Kunc, M. H., & Flores, A. (2023). The effect of local institutions on the competitive strategies of exporters. The case of emerging economies in Latin America. Journal of Business Research, 169, 114256. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114256
Hirschmann, M. (2025). One size does not fit all: Sustainable innovation, climate policy, and startups’ growth aspirations. Technological Forecasting and Social Change, 215, 124069. https://doi.org/https://doi.org/10.1016/j.techfore.2025.124069
Irwin, K., Gilstrap, C., McDowell, W., Drnevich, P., & Gorbett, A. (2022). How knowledge and uncertainty affect strategic international business investment decisions: Implications for cross-border mergers and acquisitions. Journal of Business Research, 139, 831–842. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.10.001
Jain, A., Thukral, S., & Paul, J. (2024). Foreign market entry modes of family firms: A review and research agenda. Journal of Business Research, 172, 114407. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114407
Kaura, V., Prasad, Ch. S. D., & Sharma, S. (2015). Service Quality, Service Convenience, Price and Fairness, Customer Loyalty, and the Mediating Role of Customer Satisfaction. The International Journal of Bank Marketing, 33(4), 404–422. https://doi.org/10.1108/ijbm-04-2014-0048
Kusa, R., Duda, J., & Suder, M. (2022). How to sustain company growth in times of crisis: The mitigating role of entrepreneurial management. Journal of Business Research, 142, 377–386. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.12.081
Leckel, A., Veilleux, S., & Dana, L. P. (2020). Local Open Innovation: A means for public policy to increase collaboration for innovation in SMEs. Technological Forecasting and Social Change, 153, 119891. https://doi.org/https://doi.org/10.1016/j.techfore.2019.119891
Li, X. (2022). The Development of Southeast Asia’s Digital Economy and China’s Cross-Border E-Commerce in the Region. Science Insights, 40(5), 493–498. https://doi.org/10.15354/si.22.or017
Mathiyazhagan, K., Agarwal, V., Appolloni, A., Saikouk, T., & Gnanavelbabu, A. (2021). Integrating lean and agile practices for achieving global sustainability goals in Indian manufacturing industries. Technological Forecasting and Social Change, 171, 120982. https://doi.org/https://doi.org/10.1016/j.techfore.2021.120982
Md Faudzi, M. S., Abu Bakar, L. J., & Ahmad, S. (2024). Breaking Barriers: Investigating Technology Adoption in Micro, Small, and Medium Enterprises (MSMEs) Among Low-Income Women Entrepreneurs in Malaysia. Paper Asia, 40(5), 126–135. https://doi.org/10.59953/paperasia.v40i5b.130
Mittal, R., & Soriya, S. (2025). Fostering competitiveness of Indian MSMEs through IT and digitalization. Information Technology for Development, 31(4), 1066–1089. https://doi.org/10.1080/02681102.2025.2453211
Nanda, S., & Singh, M. (2023). MICOM Analysis of Gender Differences in Parasocial Interaction and Impulse Buying Behavior. The Scientific Temper, 15(04), 3466–3481. https://doi.org/10.58414/scientifictemper.2024.15.4.58
Nguyen, H. G., Nguyen, D. T., Nguyen, M. H., Nguyen, V. H., & Le, B. N. (2025). Revisiting the Relationship Between Source Credibility and Impulsive Buying in Livestreaming Commerce: A Serial Mediation and Moderated Model. Lecture Notes in Networks and Systems, 1205 LNNS, 1004–1015. https://doi.org/10.1007/978-3-031-80943-9_104
Okonkwo, I. E., & Namkoisse, E. (2023). The Role of Influencer Marketing in Building Authentic Brand Relationships Online. Journal of Digital Marketing and Communication, 3(2), 81–90. https://doi.org/10.53623/jdmc.v3i2.350
Osakwe, C. N., Palamidovska-Sterjadovska, N., Mihajlov, M., & Ciunova-Shuleska, A. (2020). Brand Orientation, Brand-Building Behavior and Brand Identity in SMEs: An Empirical Evaluation. Marketing Intelligence & Planning, 38(7), 813–828. https://doi.org/10.1108/mip-07-2019-0370
Pedraza-Rodríguez, J. A., Ruiz-Vélez, A., Sánchez-Rodríguez, M. I., & Fernández-Esquinas, M. (2023). Management skills and organizational culture as sources of innovation for firms in peripheral regions. Technological Forecasting and Social Change, 191, 122518. https://doi.org/https://doi.org/10.1016/j.techfore.2023.122518
Phan, Q. P. T., Ngo, V. M., & Phuoc, N. C. L. (2022). How Social Commerce Characteristics Influence Consumers’ Online Impulsive Buying Behavior in Emerging Markets. 177–193. https://doi.org/10.4018/978-1-6684-6287-4.ch012
Prawira, N. G. (2025). Bridging Cultures Through Brands: Exploring the Role of Cultural Authenticity and Identity Alignment in Shaping Revisit Intention. Journal of Tourism, Hospitality and Travel Management, 2(2), 31–43. https://doi.org/10.58229/jthtm.v2i2.305
Puncheva-Michelotti, P., Hudson, S., & Michelotti, M. (2018). The role of proximity to local and global citizens in stakeholders’ moral recognition of corporate social responsibility. Journal of Business Research, 88, 234–244. https://doi.org/https://doi.org/10.1016/j.jbusres.2018.03.027
Putri, M. J. D., & Luthfia, A. (2025). Persuasive Linguistic Style and Customer Trust in TikTok Live Streaming Commerce: The Mediating Role of Customer Engagement. Paper Asia, 41(5), 513–529. https://doi.org/10.59953/paperasia.v41i5b.742
Rajaguru, R., Matanda, M. J., & Verma, P. (2023). Information system integration, forecast information quality and market responsiveness: Role of socio-technical congruence. Technological Forecasting and Social Change, 186, 122117. https://doi.org/https://doi.org/10.1016/j.techfore.2022.122117
Rivai, J. A., Gian Haryanto, A., Tehila, K., & Anggraeni, A. (2023). The Impact of Influencer Credibility on Purchase Intention of TikTok Users. 2023 11th International Conference on Information and Communication Technology, ICoICT 2023, 2023-August, 57–62. https://doi.org/10.1109/ICoICT58202.2023.10262423
Rizkita, M. A., Winarno, A., Suwono, H., & Malek, N. A. N. N. (2025). Integrating cultural adaptation in digital marketing strategies: Enhancing competitiveness and sustainability in MSMEs of Java, Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 11(3). https://doi.org/10.1016/j.joitmc.2025.100609
Rizvi, S. K. A., Rahat, B., Naqvi, B., & Umar, M. (2024). Revolutionizing finance: The synergy of fintech, digital adoption, and innovation. Technological Forecasting and Social Change, 200, 123112. https://doi.org/https://doi.org/10.1016/j.techfore.2023.123112
Said, M. M., & Soi, A. B. (2025). Expanding SME product export market through digital innovation in Indonesia. In Dynamic Strategies for Entrepreneurial Marketing (pp. 253–269). https://doi.org/10.4018/979-8-3693-3936-7.ch012
Schweizer, R., & Vahlne, J.-E. (2022). Non-linear internationalization and the Uppsala model – On the importance of individuals. Journal of Business Research, 140, 583–592. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.11.025
Shu, C. (2024). Research on the Integration of Localized Communication and Marketing Strategies of Global Brands in a Cross-Cultural Context: Taking Starbucks as an Example. Highlights in Business Economics and Management, 46, 138–142. https://doi.org/10.54097/4p4dbk21
Slitine, R., Chabaud, D., & Richez-Battesti, N. (2024a). Beyond social enterprise: Bringing the territory at the core. Journal of Business Research, 176, 114577. https://doi.org/https://doi.org/10.1016/j.jbusres.2024.114577
Slitine, R., Chabaud, D., & Richez-Battesti, N. (2024b). Towards local sustainability: How intermediation fosters social innovation. Technological Forecasting and Social Change, 209, 123790. https://doi.org/https://doi.org/10.1016/j.techfore.2024.123790
Wahid, R., Karjaluoto, H., Taiminen, K., & Asiati, D. I. (2023). Becoming TikTok Famous: Strategies for Global Brands to Engage Consumers in an Emerging Market. Journal of International Marketing, 31(1), 106–123. https://doi.org/10.1177/1069031X221129554
Wang, S., & Zhang, H. (2025). Digital Transformation and Innovation Performance in Small- and Medium-Sized Enterprises: A Systems Perspective on the Interplay of Digital Adoption, Digital Drive, and Digital Culture. Systems, 13(1). https://doi.org/10.3390/systems13010043
Widyastuti, D. A. R., Wahyuni, H. I., & Wastutiningsih, S. P. (2023). Creating a digital ecosystem for sustainable development: Insights from Indonesian micro, small and medium enterprises. Kasetsart Journal of Social Sciences, 44(1), 27–38. https://doi.org/10.34044/j.kjss.2023.44.1.04
Wu, A., Song, D., & Liu, Y. (2022). Platform synergy and innovation speed of SMEs: The roles of organizational design and regional environment. Journal of Business Research, 149, 38–53. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.05.016
Wu, M.-H. (2025). The Influence of Wanghong, Parasocial Interaction, and Homophily on Consumer Purchase Intention in Social Media Marketing. 2025 16th International Conference on E-Education, E-Business, E-Management and E-Learning, IC4e 2025, 476–480. https://doi.org/10.1109/IC4e65071.2025.11075480
Xie, X., Wu, Y., Palacios-Marqués, D., & Ribeiro-Navarrete, S. (2022). Business networks and organizational resilience capacity in the digital age during COVID-19: A perspective utilizing organizational information processing theory. Technological Forecasting and Social Change, 177, 121548. https://doi.org/https://doi.org/10.1016/j.techfore.2022.121548
Xue, M., Zhai, C., & Meng, Z. (2024). Research on the Influencing Factors of Consumer Impulsive Purchasing Intention in E-commerce Live Broadcasting. In Lecture Notes on Data Engineering and Communications Technologies (Vol. 215, pp. 945–959). https://doi.org/10.1007/978-981-97-5098-6_64
Zahoor, N., Zopiatis, A., Adomako, S., & Lamprinakos, G. (2023). The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes. Journal of Business Research, 159, 113755. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.113755
Zhukov, D., Khvatova, T., Lesko, S., & Zaltcman, A. (2018). Managing social networks: Applying the percolation theory methodology to understand individuals’ attitudes and moods. Technological Forecasting and Social Change, 129, 297–307. https://doi.org/https://doi.org/10.1016/j.techfore.2017.09.039
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Wahyu Dede Gustiawan, Sudarmiatin, Heri Pratikto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with RISK : Jurnal Riset Bisnis dan Ekonomi agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
