This study compares hindering and fostering factors for SMEs in China and Sri Lanka in their internationalization efforts through e-commerce. The study uses qualitative research methods to examine how SMEs in both countries utilize e-commerce platforms for global expansion. Narrative and thematic analysis techniques focus on manufacturing sector SMEs actively engaged in global expansion through e-commerce. Purposive sampling is used to select participants. The findings reveal shared patterns and distinctive characteristics in the digital transformation of SMEs. Chinese SMEs benefit from product popularity and advanced technologies, while Sri Lankan SMEs face challenges accessing financial resources and advanced technologies. Perspectives on innovation and regulatory/cross-cultural considerations vary. Supportive government policies and infrastructure are crucial for SME internationalization. The research provides insights for policymakers, researchers, and practitioners to enhance SME development and promote cross-national collaborations in the digital era.