From local products to global markets: Mapping internationalisation readiness gaps among participating MSMEs in Batu City

This study examines the gap between business knowledge and internationalisation readiness among micro, small, and medium-sized enterprises (MSMEs) in Batu City, Indonesia. It employed a convergent mixed-method internationalisation-readiness assessment embedded in a community engagement programme involving 30 MSME participants. Verified quantitative evidence was obtained from pre-test and post-test assessments covering bookkeeping and digital finance, business digitalisation, and branding and internationalisation. All 30 participants also contributed to the qualitative component through semi-structured interviews and a focus-group discussion, supplemented by programme observation, participant-needs records, consultation with PLUT KUMKM Batu, and a review of KUBISMA and the 365 Up Digital Catalogue. Aggregate proportions of correct pre-test responses ranged from 95.33% to 98.13%, increasing to 99.67%–100% in the post-test. This ceiling effect indicates that knowledge tests alone could not adequately differentiate participants’ operational readiness. Qualitative evidence from the participating MSMEs showed persistent implementation gaps in bookkeeping, production documentation, product standardisation, sustainability evidence, public speaking, professional communication, and access to verified international buyers. Existing digital platforms enhanced product visibility but did not independently produce market readiness. Drawing on Dynamic Capabilities, the study proposes the Batu MSME Internationalisation Readiness Model, which connects internal business foundations, international market readiness, and ecosystem support through sensing, seizing, and transforming processes. The study contributes a capability-based approach for distinguishing export interest and knowledge from demonstrated internationalisation readiness.