Purpose: Digital servitization has shown to create a competitive advantage for manufacturing companies on the international market. However, companies, specifically SMEs, are struggling to make use of its benefits for their international activity. Therefore, the purpose of this study is to investigate how SMEs utilize digital servitization for their internationalization strategy by developing their ecosystem capabilities.

Design/Methodology/Approach: To achieve this purpose, this study has adopted an exploratory multiple case-study approach and conducted in-depth semi-structured interviews with 21 manufacturing SMEs.

Findings: In this study, a framework has been developed for SMEs to enable their international activities by strengthening their digital servitization capabilities, which include digital awareness, digital service innovation, and digital service customization. Ecosystem capabilities, including ecosystem knowledge synergy, ecosystem innovation appropriability, and ecosystem alignment, have been identified as the deciding factor for the successful adoption of internationalization strategies.

Originality/Value: Despite its potential, the implementation of digital servitization is still challenging for most of the manufacturing companies, especially SMEs that target international markets. These companies are dependent on ecosystems in the international atmosphere, but the capabilities needed to succeed requires further research. In this regard, the framework presented in this study helps SMEs to develop ecosystem capabilities for digital servitization in the international arena.