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The Importance of Digital Transformation in International Business

Author

Listed:
  • Carla Santos Pereira

    (REMIT (Research on Economics, Management and Information Technologies), IJP (Portucalense Institute for Legal Research), University Portucalense, 4200-072 Porto, Portugal
    These authors contributed equally to this work.)

  • Natercia Durão

    (REMIT (Research on Economics, Management and Information Technologies), IJP (Portucalense Institute for Legal Research), University Portucalense, 4200-072 Porto, Portugal
    These authors contributed equally to this work.)

  • Fernando Moreira

    (REMIT (Research on Economics, Management and Information Technologies), IJP (Portucalense Institute for Legal Research), University Portucalense, 4200-072 Porto, Portugal
    Institute of Electronics and Telematics Engineering of Aveiro (IEETA), University of Aveiro, 3810-193 Aveiro, Portugal
    These authors contributed equally to this work.)

  • Bruno Veloso

    (INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, University Portucalense, 4200-072 Porto, Portugal
    These authors contributed equally to this work.)

Abstract

This study was developed under the scope of a Portuguese project focused on the entrepreneur’s perspective and perception on the internationalization process of his company: more specifically, about the factors that enhanced the company entry into foreign markets as well as the constraints found in this process. This work focuses on the importance of using digital transformation to integrate technological tools in international business practice and strategy and the obstacles encountered with introducing these new technologies. This study aims to determine the relationships between technology categories and obstacles. The final goal is to assess the impact of these characteristics of the companies by the sector of economic activity, size, and percentage of profits resulting from international expansion. A questionnaire was designed and sent by email to 8183 companies from the AICEP database, distributed by three main activity sectors. A total of 310 valid answers were gathered from the Portuguese internationalized companies. The research limitations are related to the reduced number of interviews. These interviews showed that managers were not aware of the concept of digital transformation and misunderstood the use of digital technologies in the internationalization process of the business. This limitation can add some bias to the qualitative results. In addition to these limitations, the number of responses per sector was also not homogeneous. The practical implications of this study are that managers and top-level executives can use that to better understand how companies could use digital tools and what obstacles they should avoid when they want to internationalize their business. This paper is one of the first research contributions to analyze the impact of digital transformation in the internalization of Portuguese companies.

Suggested Citation

  • Carla Santos Pereira & Natercia Durão & Fernando Moreira & Bruno Veloso, 2022. "The Importance of Digital Transformation in International Business," Sustainability, MDPI, vol. 14(2), pages 1-26, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:834-:d:722970
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    References listed on IDEAS

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    3. Sascha Kraus & Paul Jones & Norbert Kailer & Alexandra Weinmann & Nuria Chaparro-Banegas & Norat Roig-Tierno, 2021. "Digital Transformation: An Overview of the Current State of the Art of Research," SAGE Open, , vol. 11(3), pages 21582440211, September.
    4. Annaële Hervé & Christophe Schmitt & Rico Baldegger, 2020. "Internationalization and Digitalization: Applying digital technologies to the internationalization process of small and medium-sized enterprises," Post-Print hal-02998020, HAL.
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    2. Cristina Nicolau & Eliza Nichifor & Daniel Munteanu & Oana Bărbulescu, 2022. "Decoding Business Potential for Digital Sustainable Entrepreneurship: What Romanian Entrepreneurs Think and Do for the Future," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    3. Lavinia Cornelia Butum & Luminița Nicolescu & Sergiu Octavian Stan, 2022. "Developing Global Competences via University Internationalization Activities—A Comparative Analysis of Business Students’ Opinions before and during the COVID-19 Pandemic Crisis," Sustainability, MDPI, vol. 14(21), pages 1-30, November.
    4. Muhammad Zafar Yaqub & Abdullah Alsabban, 2023. "Industry-4.0-Enabled Digital Transformation: Prospects, Instruments, Challenges, and Implications for Business Strategies," Sustainability, MDPI, vol. 15(11), pages 1-33, May.
    5. Fernando Almeida, 2023. "Prospects of Cybersecurity in Smart Cities," Future Internet, MDPI, vol. 15(9), pages 1-21, August.

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