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The pace of international expansion for digital multinational enterprises

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  • Lo, Fang-Yi
  • Bui, Quang-Tuan
  • Huarng, Kun-Huang

Abstract

Firms that engage in digital transformation are different from traditional firms when it comes to internationalization, because they are not designed to operate that way. This research explores the pace of internationalization of digitally-operated firms by comparing the relationship of their internal resources and external growth options with the pace of digital multinational enterprises' (DMNEs') internationalization process. We further investigate the moderating effect of international diversification via a group sample collected from the Taiwan Economic Journal (TEJ) database. Statistical results support that firms' internal resources have a U-shape relationship with their pace of internationalization, and under the moderation of international diversification this shape becomes flatter. Growth options positively influence the pace, and international diversification strengthens this relationship. This study enhances the literature in comprehending digital firms' process of expanding globally, and with the aid of diversification, DMNEs have enhanced opportunities to increase their international presence. The findings contribute to the current knowledge in the global business field about the determinants of firms that affect the pace of internationalization. Specifically, internal resources have a curvilinear relationship with the pace, while growth options have a positive relationship with it.

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  • Lo, Fang-Yi & Bui, Quang-Tuan & Huarng, Kun-Huang, 2023. "The pace of international expansion for digital multinational enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:tefoso:v:193:y:2023:i:c:s0040162523003141
    DOI: 10.1016/j.techfore.2023.122629
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