ISSN: 1648 - 4460

International Journal of Scholarly Papers

VU KHF

Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2022
  • © Brno University of Technology, 2002-2022
  • © University of Latvia, 2002-2022
Article

DIGITALIZATION AND INTERNATIONALIZATION: A STUDY OF THE MANUFACTURING INDUSTRY IN CHINA
Xiaosong Zheng, Anran Sun

ABSTRACT: This study takes cross-sectional data from 1323 publicly listed manufacturing firms in China and creates a "Digital Ownership Advantage" denoted by three dimensions: digital infrastructure, digital technology, and digital investment. Based on the previous internationalization models and theories, this study examines the influence of digitalization on firm internationalization and the indirect effect of international innovation. We further explore how digitalization affects firm internationalization in different regions and resource intensities, and how digitalization performs at different stages of internationalization. The study reveals that the digital ownership advantage increases firm internationalization, which is greater in the primary stages of internationalization. International innovation plays an indirect effect, that is more significant in the advanced stages of firm internationalization. The combination of digitalization and capital can better promote the internationalization of firms.

KEYWORDS:  digital ownership advantage, digitalization, internationalization, manufacturing, innovation.

JEL classification:  L15, L21, M16

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Scholarly papers Transformations in Business & Economics
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