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International trade and cyber-readiness: A review of micro, small and medium-sized enterprise (MSME) perception and practice

Author

Listed:
  • Lundquist, Kathryn
  • Jha, Rahul
  • Vishwanath, Reetuparna
  • Chi Pok Cheang

Abstract

With the continuing trend of digitalization and its impacts on international trade participation of firms, this paper considers how cyber-readiness impacts trade participation rates, especially of micro-, small- and medium-sized enterprises (MSMEs). First, the paper seeks to define what cyber-readiness is, exploring the multiple components that support MSME digitalization and digital transformation including digital security. The paper then presents the results of a 2023 survey of businesses and policymakers that previously engaged with the International Telecommunication Union on how cyber-readiness is viewed by these groups. Lastly, the paper builds a cyber-readiness score to explore how this concept could be tested against trade participation. Although no correlation was found between the constructed index and international trade by either MSMEs or large firms, a positive correlation emerged between the cyber-readiness score and MSME productivity.

Suggested Citation

  • Lundquist, Kathryn & Jha, Rahul & Vishwanath, Reetuparna & Chi Pok Cheang, 2026. "International trade and cyber-readiness: A review of micro, small and medium-sized enterprise (MSME) perception and practice," WTO Staff Working Papers ERSD-2026-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:343986
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    References listed on IDEAS

    as
    1. Takeda, Asami & Truong, Hoa T. & Sonobe, Tetsushi, 2022. "The impacts of the COVID-19 pandemic on micro, small, and medium enterprises in Asia and their digitalization responses," Journal of Asian Economics, Elsevier, vol. 82(C).
    2. Ernesto Cassetta & Umberto Monarca & Ivano Dileo & Claudio Di Berardino & Marco Pini, 2020. "The relationship between digital technologies and internationalisation. Evidence from Italian SMEs," Industry and Innovation, Taylor & Francis Journals, vol. 27(4), pages 311-339, April.
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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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