<![CDATA[Small and medium-sized enterprises (SMEs) play an important role in supporting economic diversification and employment in Timor-Leste. However, their competitiveness may be constrained by limited financial resources, digital capabilities, and market access. Although previous studies have examined digital technology adoption and business model innovation, these factors are often investigated separately or in contexts that may not fully reflect the conditions of SMEs in Timor-Leste. This study aims to develop a conceptual framework explaining how information technology adoption and business model innovation may contribute to SME competitiveness in Timor-Leste. A conceptual research approach was employed through a synthesis of relevant academic literature and institutional reports on digital transformation, business model innovation, and SME competitiveness. The synthesis indicates that information technology adoption may strengthen competitiveness through improved operational efficiency, broader market access, and better information management. Business model innovation may contribute by renewing how SMEs create, deliver, and capture value. The proposed framework positions these factors as two distinct but potentially complementary drivers of SME competitiveness and formulates two propositions for future empirical testing. The study’s novelty lies in integrating information technology adoption and business model innovation into a single conceptual framework specifically contextualized for SMEs in Timor-Leste. The framework provides a foundation for future empirical research and evidence-informed SME development policies.]]>
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