Abstract
There is an urgent need in the field of international entrepreneurship to elucidate how SMEs can pursue new opportunities in a digital international business environment. The purpose of this study is to examine, by using effectuation theory, the processes by which retail SMEs develop international e-commerce in foreign markets. This research is based upon qualitative data from three Swedish retail-SMEs. This study makes a theoretical contribution to international entrepreneurship research by providing more granular insights into the actual drivers of e-commerce internationalisation. In particular, this study illustrates how capabilities underlie the processes of international e-commerce development.