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Digital Transformation, Corporate Innovation, and International Strategy: Empirical Evidence from Listed Companies in China

Author

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  • Fuxia Gao

    (Research Center for International Business and Economy, Sichuan International Studies University, Chongqing 400013, China)

  • Chuan Lin

    (Research Center for International Business and Economy, Sichuan International Studies University, Chongqing 400013, China)

  • Haomiao Zhai

    (Research Center for International Business and Economy, Sichuan International Studies University, Chongqing 400013, China)

Abstract

This paper empirically investigates the impact of digital transformation on corporate international strategy. With a dataset of the Chinese stock market from 2014 to 2020, our empirical results reveal that digital transformation has a positive impact on the international strategy of Chinese enterprises. More specifically, firms with digital transformation are more likely to implement international strategy, and firms with a higher degree of digital transformation are associated with a higher level of internationalization. In addition, our empirical results reveal that corporate innovation exhibits the mediation effect. Moreover, our findings show that the impact of digital transformation is more pronounced for private firms and non-high-tech enterprises, and this impact is also moderated by high institutional development in eastern China. Our findings survive numerous robustness checks.

Suggested Citation

  • Fuxia Gao & Chuan Lin & Haomiao Zhai, 2022. "Digital Transformation, Corporate Innovation, and International Strategy: Empirical Evidence from Listed Companies in China," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:8137-:d:855144
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    References listed on IDEAS

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    Cited by:

    1. Ge Zhang & Yuxiang Gao & Gaoyong Li, 2023. "Research on Digital Transformation and Green Technology Innovation—Evidence from China’s Listed Manufacturing Enterprises," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    2. Jinguo Xin & Kun Du & Yuqi Xia, 2024. "The Impact of Enterprise Digital Transformation on Audit Fees—An Intermediary Role Based on Information Asymmetry," Sustainability, MDPI, vol. 16(22), pages 1-21, November.
    3. Guoen Xia & Zenghui Yu & Xuwu Peng, 2023. "How Does Enterprise Digital Transformation Affect Total Factor Productivity? Based on the Information Intermediary Role of Analysts’ Attention," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    4. Qianxiao Zhang & Yixue Duan, 2023. "How Digitalization Shapes Export Product Quality: Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-20, April.

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