Digital Transformation and Inter-Regional Dynamics: Accelerating Chinese Multinationals' Internationalization in the De-globalization Era

Purpose: The purpose of this study is to explore how digital transformation affects the speed at which Chinese Multinational Enterprises (CMNEs) internationalize. The study aims to understand the complexities and facilitative effects of digital transformation in the context of de-globalization. Design/methodology/approach: The study utilizes a quantitative approach, examining 1,262 firm-year observations spanning from 2010 to 2020. It applies internalization theory to hypothesize a U-shaped relationship between digital transformation and internationalization speed, meaning that digital transformation may initially hinder but later en-hance the internationalization process. Findings: The findings confirm that digital transformation both facilitates and complicates the international ex-pansion of CMNEs. While it can increase transaction costs and add to market complexities, it ultimately supports international growth. The study also identifies significant roles for inter-regional ratios and de-globalization trends in influencing the relationship between digital transformation and internationalization. Research limitations/implications: The research is limited to Chinese multinational enterprises and the specific timeframe of 2010-2020, which may not fully capture long-term effects or applicability to firms from other countries. The implications suggest that managing digital transformation strategically is crucial for CMNEs facing global market fragmentation and de-globalization pressures. Originality/value: This study contributes original insights by linking digital transformation with internationalization speed in the context of de-globalization. It enhances the internalization theory by integrating digital transformation aspects and provides practical implications for the strategic management of digital capabilities in CMNEs navigating global challenges.