Abstract
Based on an empirical study using a panel data of Chinese listed firms, we explore the fundamental mechanisms by which firms convert the edge derived from digitalization into internationalization performance. We find that firms’ digital investment effectively facilitates the establishment of international strategic alliances (ISAs) through which firms yield better internationalization performance. These effects become stronger when firms are more digitally conscious. Our study highlights the significance of firms’ digitization in shaping international performance and reveals specific mechanisms involved. Important organizational contingency has also been identified.
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