Digitization Strategy in International Market: Embeddedness, Boundary Spanning, and Internationalization Performance

PurposeThis paper aims to reassess the influence of firm resources on international performance in the context of a major emerging economy – India. This reexamination aims to update knowledge in the area and assess the efficacy of the resource-based view (RBV) as a theoretical base for international business studies.Design/methodology/approachEncompassing 67 firms in India, across industries, over a period of five years, the study uses Panel Data Analysis on secondary data from a comprehensive database, CMIE Prowess.FindingsThe study finds scale resources and international experience have positive impacts on international performance. However, the positive impact of other resources considered – marketing capabilities, R&D intensity and innovativeness – on international performance was not supported. The study finds the research-based theory (RBV) needs to be supplemented with the dynamics capabilities perspective to understand factors determining international performance better.Research limitations/implicationsThe major research implications of the study include that RBV by itself may not be sufficient to examine the drivers of international business performance and needs to be supplemented with the dynamic capabilities approach. Further, the study finds that despite high quality, secondary sources may not be sufficient to assess international business performance. The limitations of the study include the lack of consideration of dynamic capabilities and subjective measures of international business performance.Practical implicationsThe study aids top management to gauge the extent to which their firm resources may abet international performance allowing decision-making, accordingly.Originality/valueThe study extends and updates prior research to the context of emerging economies as against most research in the area that is focused on the developed nations. To the best of the authors’ knowledge, this study is perhaps the first to provide empirical evidence for the need to supplement RBV with the dynamic capabilities approach to better understand the drivers of international business performance.

This paper investigates the relationships between digital transformation, boundary spanning, and sustainable competitive advantage of manufacturing enterprises through an analysis of data from 127 manufacturing enterprises. Our main research findings are as follows. First, digital transformation has a positive impact on sustainable competitive advantage of manufacturing enterprises. Compared with the degree of transformation, technology readiness has a stronger influence on sustainable competitive advantage. Second, digital transformation has a positive impact on boundary spanning of manufacturing enterprises. Third, boundary spanning of manufacturing enterprises has a positive impact on their sustainable competitive advantage. Fourth, digital transformation affects the acquisition of sustainable competitive advantages of enterprises through boundary spanning, where the direct role of digital transformation accounts for 75% and the mediation effect of boundary spanning accounts for 25% of the total effect. Fifth, the mediation effect of boundary spanning on the relationship between digital transformation and sustainable competitive advantage is mainly realized through boundary spanning depth, while the mediation effect of boundary spanning breadth on the relationship between digital transformation and sustainable competitive advantage is insignificant. Our findings can help realize the digital transformation of manufacturing enterprises and achieve their sustainable competitive advantage.

Digital transformation accelerates the boundary reshaping of firms’ R&D cooperation and knowledge bases, bringing opportunities for breakthrough innovation following overseas mergers and acquisitions (M&A). Unlike previous studies that have focused separately on digital transformation and overseas M&A integration, this paper aims to explore their synergy effects on firms’ breakthrough innovation from a boundary-spanning perspective. Based on samples of Chinese manufacturing firms’ technology-sourcing overseas M&A from 2012 to 2019, our empirical results show that boundary spanning in R&D cooperation networks and knowledge networks mediate the synergy effects of digital transformation and appropriate overseas M&A integration on firms’ breakthrough innovation. This paper not only complements recent studies that combine digital transformation and boundary-spanning theories, but also provides a deeper understanding of the relationship between boundary spanning and breakthrough innovation in the digital context. It offers important theoretical and practical insights into overseas M&A and innovation in the digital era.

Purpose As supply chain relationships grow increasingly complex and interdependent, business-to-business (B2B) firms face heightened exposure to idiosyncratic risks that originate from stakeholder tensions and operational uncertainties. In such contexts, the role of Environmental, Social, and Governance (ESG) performance becomes especially critical because B2B firms rely heavily on maintaining stable, trust-based relationships with customers, suppliers, and other network partners. Drawing on stakeholder theory and the resource-based view, this study investigates how ESG performance shapes B2B firm idiosyncratic risk and examines the mechanisms through which relational pressures intensify these effects. Methodology/Approach We employ a longitudinal panel dataset of Chinese listed B2B firms spanning 2011–2021. Fixed-effects panel regressions are estimated throughout, with robustness checks addressing endogeneity via instrumental variables and alternative variable operationalizations. Findings Stronger ESG performance consistently reduces B2B firm idiosyncratic risk. This effect operates through a stakeholder-based pathway, whereby high-ESG firms attract significantly fewer customer complaints, and this reduction in complaints in turn lowers firm idiosyncratic risk. Furthermore, digital transformation amplifies the ESG–risk relationship. Firms with advanced digital capabilities respond more rapidly and effectively to stakeholder signals, magnifying the risk-mitigating returns on ESG performance. Research Limitations/Implications The study is confined to Chinese listed B2B firms and a single measurement approach for digital transformation. Future research should test these mechanisms across different institutional environments, industries, and supply chain configurations, and employ finer-grained measures of digital capability and stakeholder engagement to deepen theoretical precision. Practical Implications B2B managers should treat ESG investment not merely as a compliance exercise but as a proactive risk management strategy, particularly in relationship-intensive supply chain contexts. Simultaneous investment in digital infrastructure can multiply the risk-reduction returns on ESG initiatives by enabling real-time stakeholder monitoring and more agile ESG execution. Originality/Value/Contribution By integrating ESG performance, customer complaints, and digital transformation within a single explanatory framework, this study advances understanding of how B2B firms manage idiosyncratic risk in complex stakeholder environments. It is among the first to identify customer complaints as a concrete mediating pathway linking ESG to firm idiosyncratic risk, and to demonstrate that digital transformation functions as a complementary strategic resource that amplifies ESG effectiveness. Our study contributes novel insights to the literature on corporate risk, corporate ESG strategy, and digital transformation in B2B markets.

As digital technologies development continues, as the risk for existing business in all industries increases due to the new innovated, digital-based products and services that are changing market conditions. Digital transformation strategy enables incumbent firms to keep their existence in the digital era. However, firms need first to assess their readiness for digital transformation strategy requirements. The lack of agreed model that explains the process of digital transformation strategy in general and on firm’s readiness for this strategy were enough justifications for the researcher to conduct this study. The researcher fills this gap by proposing new model for digital transformation readiness. The study also examines a mediation role for dynamic capabilities in reconfiguring operational capabilities in a firm so that to enhance its readiness for digital transformation strategy. The findings of this research shall empirically validate the proposed model and it will reveal the role of dynamic capabilities in improving firm’s digital transformation readiness. The research indicates that dynamic capabilities are developed by other organizational capabilities such as culture values and ICT capabilities. It also points to the essential role of dynamic capabilities in adapting operational capabilities for any market change. Organizations shall prepare themselves for digital transformation strategy by focusing on developing capabilities needed for this strategy to reduce the risk of failure. The proposed model can be considered as a significant contribution in the area of the digital transformation strategy. The model in practical wise will help managers to assess their firm’s readiness for digital transformation strategy and fill any gap identified. The proposed model for digital transformation readiness is recommended to be further extended to include more effecting factors including technological and environmental factors.

Purpose: This study investigates the impact of digital business intensity and transformation on organizational ambidexterity and sustainable performance on insurance companies in Indonesia from a dynamic capabilities’ perspective.Design/methodology/approach: The study uses a quantitative approach, purposive sampling used to select insurance companies with assets over IDR 1 trillion. The primary data was obtained directly from the top-level management unit of 120 data questionnaires, namely, 40 Chief Executive Officer (CEO), 40 chief agency officer (CAO) and 40 Chiefs Technology Officer CTO) of each company. The data of each department in a company is aggregated as a single unit of responses from one company. The Structural Equation Model is used as a method to test and analyze data, using SmartPLS software.Purpose: This study aims to investigate the impact of digital business intensity and digital transformation on organizational ambidexterity and sustainable organizational performance in Indonesian insurance firms from a dynamic capability perspective.Design/methodology/approach: Through quantitative approach, purposive sampling is used to select insurance companies with assets exceeding IDR 1 trillion. Primary data was collected through structured questionnaires distributed to 120 top-level executives, including 40 Chief Executive Officers (CEOs), 40 Chief Agency Officers (CAOs), and 40 Chiefs Technology Officers CTOs). Responses from each company were aggregated to form a unified dataset for analysis. Structural Equation Modeling (SEM) was used to analyze the data using SmartPLS software.Findings: The findings reveal that both digital business transformation and government interventions significantly increase organizational ambidexterity. Furthermore, organizational ambidexterity serves as a mediator for the relationship between digital business intensity and government intervention towards sustainable organizational performance. The mediating role of organizational ambidexterity in the relationship for digital business intensity and sustainable organizational performance is positively moderated by digital business intensity.Research limitations/implications: The study applies dynamic capability as a theoretical basis to understand how insurance companies can attain sustainable performance in the digital age. However, it acknowledges limitations, such as the exclusion of external factors like macroeconomic conditions, regulatory changes, and rapid technological advancements. The focus on the insurance sector may also limit the applicability of the findings to other industries with different dynamics.Practical implications: The study provides actionable insights for insurance firms to refine their digital strategies. By developing and validating new metrics to measure digital business intensity and sustainable performance, firms can better assess the effectiveness of their digital transformation. This framework serves as a guide for practitioners to evaluate the impact of digital initiatives on their organizations.Originality/value: This study enriches the organizational literature by demonstrating how digital business intensity and ambidexterity contribute to enhancing sustainable performance in the insurance industry. It also highlights the significance of government policies as external factors influencing organizational dynamics, offering a new perspective on how these elements interact within the context of dynamic capabilities in the financial sector.

Executive SummaryThis research studies the role of networks in the internationalization of small and medium enterprises (SMEs) in an emerging country; mediated by internationalization capabilities. Self‐administered surveys targeting 300 SMEs in Egypt were employed, and Structural Equation Modeling (SEM) was used to test the proposed hypotheses. The results indicated that nonbusiness institutional networks have a direct positive impact on Egyptian SMEs' international performance, while the direct relationship between interfirm networks and social networks with international growth showed insignificant results. Moreover, the mediating role of the internationalization capabilities showed significant results between the three types of networks and SMEs' international performance. This study is an original attempt to differentiate among the types of networks, and how each affect SMEs' international growth. Additionally, empirical evidence is provided for the role of networks in building SMEs' internationalization capabilities in an emerging country context, where research has received less attention.AbstractThis research aims to study the role of networks in the internationalization of small and medium enterprises (SMEs) in an emerging country. The research also investigates the mediating effect of internationalization capabilities; namely disruption and value‐adding capabilities in the internationalization process. This study is following a conclusive descriptive research design, utilizing a quantitative methodology using self‐administered surveys. Data were collected from 300 SMEs in Egypt from various industries. The results indicated that nonbusiness institutional networks have a direct positive impact on Egyptian SMEs' international performance. However, the direct impact of interfirm networks and social networks on SMEs' international performance showed insignificant results. Moreover, the mediating role of the internationalization capabilities, namely disruption capabilities and value‐adding capabilities, showed significant results; mediating the relationship between the three types of networks and SMEs' international performance. This study contributes to the networks theory as well as the dynamic capabilities theory, where we postulate that various types of networks support the development of specific capabilities crucial for firms' internationalization. The study is important for SME managers as it identifies the specific importance of business, social, and nonbusiness institutional networks to enhance SMEs' international performance in emerging countries. This study employed AMOS‐SPSS version 21 for data analysis.

PurposeThis paper aims to compare the future orientation (FO) society practices dimension of the Globe model with Hofstede's long-term orientation (LTO) by testing their causal effects on three firm-level variables: cash holdings, long-term investments and acquisitions. In doing so, this research challenges the already taken-for-granted assumption in the empirical research that the two dimensions are equivalent.Design/methodology/approachHierarchical linear modeling (HLM) was used to test the hypotheses on 7,065 firms across 49 countries between 2000 and 2017.FindingsThe findings show that the causal impacts of FO society practices and LTO on a given construct are not consistent. Although LTO increases cash holdings, the impact of FO society practices on this variable is insignificant. Additionally, unlike FO society practices, which significantly increases long-term investments and acquisitions, LTO does not influence long-term investments and decreases acquisitions.Originality/valueThis study is valuable since it addresses the confusion surrounding the similarities and differences between FO society practices and LTO. Despite the dissimilarity also emphasized by Globe, Hofstede claims that they are equivalent, and the great majority of the empirical literature has assumed them to be equivalent in their analyses. Addressing this confusion, this research provides further empirical evidence that these two dimensions are dissimilar. The additional important contribution of the study is theorizing and examining the impact of FO society practices and LTO on the firm-level outcomes that reflect their temporal orientation (i.e. long-term investments and acquisitions), which is surprisingly neglected in the literature.

Research on firm internationalisation has tended to focus on Large Enterprises(LEs), with relatively less focus on Small Medium Enterprises (SMEs), despite the importance of SMEs in generating national employment and economic development. In many countries the government has acknowledged SMEs as a key source of domestic income growth and employment creation, most particularly from export activities. Studies on internationalisation of SMEs, however, have been predominantly focused on developed countries. This study therefore is focused on the internationalisation of SMEs from Indonesia, which represents developing countries. Most studies of exporting SMEs focus on macroeconomic factors such as regulation, infrastructure and programs which assist SME development. On the other hand, management literature has recognised the important roles of senior managers in terms of their management know‐how and international business skills as human capital which can influence the export activity of the firm. At the same time, social capital is also recognised a further resource needed for SME internationalisation. Therefore this research will address this gap in order to examine the role of entrepreneur’s human and social capital in internationalisation of the firm. Further to this, findings on the relationship between firm internationalisation and firm performance are mixed. More specifically, the effect of internationalisation of SMEs on business performance has not been seriously investigated. This study therefore seeks to fill this gap by examining the unique effect of different dimensions of internationalisation on business performance. Overall, this study has three purposes: the first is to measure company resources (Human and Social Capital) influencing Indonesia’s manufacturing exporting SMEs in their internationalisation process; the second is to examine the effect of human and social capital in relation to three dimensions of internationalisation (international performance, number of markets and time to internationalise); and the third is to assess the effect of the aforementioned internationalisation dimensions on firm financial performance. This study used a mixed method combining quantitative and qualitative approaches. The quantitative data was drawn from 241 SMEs’ managers and/or owners who have exporting activities from a total of approximately 3 million SMEs based on the Indonesian government database. The qualitative data was collected through interviews with ten SMEs owner‐managers who were participating in the survey. Using Structural Equation Modelling (SEM) technique, the findings suggest that Management Know‐How have no positive relationship with any dimension of internationalisation, but, interestingly, it has a negative relationship with time for internationalisation; suggesting that it delays the internationalisation of the firms. The findings also show that both International Business Skills and Social Capital skills have a positive relationship with international performance and number of exporting markets, but not with time for internationalisation. With regard to the effect of internationalisation on business performance, the findings show that international performance has no effect on business performance, but the number of export market has a positive relationship with business performance. On the other hand, the time for internalisation has a negative effect on business performance, meaning that the later the SMEs internationalise, the better their performance. Qualitative findings indicate that good networks with competitors, suppliers and government will help a firm to serve the international market successfully. From theoretical perspectives, the findings support the Resource‐Based View theory as international business skills have positive relationships with two dimensions of internationalisation. The findings of this study also support the traditional view of incremental internationalisation advanced by Stage Theory. Consequently, the findings imply that International New Venture Theory, which supports born‐global or leap‐frog approach in internationalising SMEs, is not appropriate for Indonesian context. Finally, this study also supports the Network Perspective which suggests that the relationships built by firms with other businesses, community leaders, and government have significant effect on internationalisation of SMEs. Overall, this study demonstrates the unique effect of different organisational capitals (i.e. human and social) as key resources for facilitating internationalisation.

Purpose Digital transformation is widely recognized as a fundamental strategy for business-to-business (B2B) firms to attain long-term growth. However, the mechanism by which B2B firms leverage digital platforms to drive transformation and enhance competitiveness remains unclear. This paper aims to conceptualize the brand flagship platform as a business-to-business-to-customer (B2B2C) model by integrating B2B and business-to-consumer (B2C) models and explore its potential mechanisms for promoting digital transformation. Design/methodology/approach In this empirical study, this paper obtained 296 questionnaires from three companies across categories, namely Haier (manufacturing), China Merchants Bank (finance service) and Luckin Coffee (retail). The participants were managers who had access to the digital strategies. A structural equation model was conducted to test the proposed hypotheses. Findings This research shows that brand flagship platforms, which integrate B2B and B2C models, facilitate the digital transformation of B2B firms. Specifically, digital leadership capability and digital business capability positively influence digital platform capability, which is enabled by brand flagship platforms. Moreover, organizational flexibility amplifies the positive effects of digital leadership capability and digital business capability on digital platform capability. In turn, digital platform capability significantly enhances brand competitiveness. Practical implications This study offers significant insights for legacy firms seeking digital transformation through brand flagship platforms, providing actionable guidance for their strategic decisions. Originality/value This research fills a gap by advancing the theoretical understanding of the brand flagship platform through the integration of the B2B2C model and highlighting its role in B2B firms’ digital transformation. It sheds light on the underlying mechanism by which lower-order capabilities – digital leadership capability and digital business capability – influence brand competitiveness through the higher-order brand platform capability. It also expands brand management theory by demonstrating how digital platforms transform brands from product and service providers into ecosystem hubs.

Purpose This study investigates the strategic dimensions of digital transformation in business, focusing on the development and implementation of a digital strategy. It explores the evolution of digital services, highlights key steps in digital transformation, and introduces the Hoshin Kanri model as a tool for structuring digital transformation strategies. The aim is to equip organizations with frameworks to enhance competitiveness and adapt to technological advancements. Design/methodology/approach The study employs bibliometric analysis using Scopus and VOSviewer to examine global research trends in digital transformation strategy. The Hoshin Kanri methodology is adapted to design a strategic framework for digital business transformation. A combination of systemic, synergistic, and critical evaluative approaches underpins the analysis, alongside a review of literature spanning business management, digital ecosystems, and strategic planning. Findings Key findings include the identification of five steps in digital transformation strategy development, ranging from vision formation to digital acceleration. The Hoshin Kanri model is presented as a novel adaptation for digital strategy, integrating technology, human resources, customer orientation, processes, and financial planning. The analysis underscores the role of integrated approaches in mitigating risks and enhancing the efficacy of digital transformations. Originality/value This study is the first to adapt the Hoshin Kanri model specifically for digital business transformation. It provides a comprehensive strategy roadmap that aligns digital transformation with corporate objectives, organizational culture, and stakeholder needs, offering practical insights for businesses navigating the Web 4.0 era.

Purpose With the emergence of the digital era, the role of digital leaders in developing digital capabilities and driving their firms towards digital transformation has gained significant attention. Digital dynamic capabilities involve continuous engagement of leaders in sensing, seizing, and transforming activities needed to digitally transform their firms. However, little attention is given toward the role of digital leadership in developing digital dynamic capabilities. We seek to develop an understanding of the role of digital leadership in building digital dynamic capabilities for successful digital transformation. Design/methodology/approach We conducted a systematic literature review and looked at relevant articles using Google Scholar, ScienceDirect, and Scopus databases with key search items being “digital leadership”, “dynamic capabilities”, “digital dynamic capabilities,”. We used AND, OR operators in between the key terms to search for the relevant articles. Findings Our conceptual framework and propositions demonstrate the digital leader's role in building three core dynamic capabilities: digital sensing (technological trends, digital scouting, digital vision, future interpretation, and digital strategies), digital seizing (organizational agility and digital portfolio), and transforming (redesigning internal structures and ecosystem partnerships) for successful digital transformation. Originality/value This study pioneers an integrated framework that elucidates the role of digital leadership in fostering digital dynamic capabilities essential for successful digital transformation. While previous research has examined digital leadership and transformation in separate silos, our work bridges this gap by defining and dissecting three core capabilities—digital sensing, digital seizing, and transforming. By doing so, we offer both academic and practical communities a nuanced understanding of how digital leadership shapes dynamic capabilities. The study serves as a foundational roadmap for future research and offers actionable insights for organizations striving to navigate the complex landscape of digital transformation.

This study distinguishes between international exploitation and international exploration and extends the literatures on dynamic internationalisation capability by introducing absorptive capacity as a moderator. This study empirically examines the research framework using survey data from 211 manufacturing firms in Taiwan. Informants' (CEOs, vice presidents, senior managers) knowledge about and shouldering of firm responsibilities is explored. The findings confirm previous studies that claim a positive relationship among overseas market orientation, dynamic internationalisation capability, and international performance. In addition, the results indicate that absorptive capacity positively moderates the relationship among overseas market orientation, international exploration and exploitation. This study contributes to both dynamic capability and international marketing strategy literature by extending recent studies through investigating the relationships between overseas market orientation, dynamic internationalisation capability, absorptive capacity, and international performance.

This study distinguishes between international exploitation and international exploration and extends the literatures on dynamic internationalisation capability by introducing absorptive capacity as a moderator. This study empirically examines the research framework using survey data from 211 manufacturing firms in Taiwan. Informants' (CEOs, vice presidents, senior managers) knowledge about and shouldering of firm responsibilities is explored. The findings confirm previous studies that claim a positive relationship among overseas market orientation, dynamic internationalisation capability, and international performance. In addition, the results indicate that absorptive capacity positively moderates the relationship among overseas market orientation, international exploration and exploitation. This study contributes to both dynamic capability and international marketing strategy literature by extending recent studies through investigating the relationships between overseas market orientation, dynamic internationalisation capability, absorptive capacity, and international performance.

Purpose: This study examines how digital transformation influences the strategic capability of deposit money banks in Rivers State, Nigeria, particularly in light of persistent operational challenges despite significant digital investments. Research Methodology: A survey research design was adopted. Data were collected from 91 managers and heads of departments across 15 deposit money banks using a proportionate sampling technique. The Pearson Product Moment Correlation Coefficient was employed to analyze the relationships between digital transformation variables and dimensions of strategic capability. Results: The findings reveal that digital strategy and digital customer experience positively and significantly correlate with the three dimensions of strategic capability—strategic sensing, strategic seizing, and strategic reconfiguring (p < 0.01). This indicates that well-implemented digital transformation initiatives strengthen banks’ dynamic capabilities. Conclusions: Digital transformation, when strategically aligned and customer-focused, enhances banks’ ability to sense opportunities, seize market advantages, and reconfigure resources effectively, thereby improving long-term competitiveness in a dynamic financial environment. Limitation: The study is limited to deposit money banks in Rivers State and relies on cross-sectional survey data, which may limit generalizability and causal inference. Contributions: This study contributes empirical evidence on the linkage between digital transformation and dynamic strategic capabilities in the Nigerian banking sector. It offers practical insights for bank executives to institutionalize clear digital strategies and continuously improve digital customer experience to achieve sustainable competitive advantage.