ABSTRACT As technological turbulence intensifies, multinational enterprises are facing dual pressures of global integration and local response (GI-LR) in terms of innovation and collaborative governance. However, the strategies and conditions for multinationals to cope with this situation are still uncertain. Through the outward foreign direct investment events of Chinese manufacturing listed companies in 2009–2019, the relationship between the digitalisation of multinational enterprises and balancing GI-LR pressure is empirically examined. Results show: (1) digitalisation has a positive impact on balancing GI-LR pressure through technology innovation and collaborative governance; (2) this relationship is moderated by organisational slack, industrial pressure attribute and the host country’s data policy restrictions; (3) digitalisation supports multinational enterprises to balance GI-LR pressure in a distant and unfamiliar institutional environment, and overcomes obstacles caused by lack of international experience. These findings enrich the understanding of the inner link between digital based business strategies and GI-LR based internationalisation strategies.