Internationalization in the Digital Age: The Role Of Cultural Distance And Industry Dynamism
Type
conference paper
Date Issued
2020-08-09
Author(s)
Abstract
This study examines the impact of information and communication technologies (ICT) on the
degree of internationalization by focusing on multinational enterprises (MNEs). We argue that ICT helps MNEs to reduce internal and external transaction costs in an international context, resulting in a higher degree of internationalization. We further argue that the positive impact becomes more pronounced under the the condition of high cultural distance and a high level of industry dynamism.
Our empirical results are strongly congruent with our hypotheses. We used a panel dataset
from four major European countries, consisting of 567 firm year observations from 2011, 2013, and 2015. Overall, our study contributes to the emerging research stream about internationalization in the digital age. It shows that ICT acts as a filter for uncertainty, both ex-post and ex-ante, in the internationalization process.
degree of internationalization by focusing on multinational enterprises (MNEs). We argue that ICT helps MNEs to reduce internal and external transaction costs in an international context, resulting in a higher degree of internationalization. We further argue that the positive impact becomes more pronounced under the the condition of high cultural distance and a high level of industry dynamism.
Our empirical results are strongly congruent with our hypotheses. We used a panel dataset
from four major European countries, consisting of 567 firm year observations from 2011, 2013, and 2015. Overall, our study contributes to the emerging research stream about internationalization in the digital age. It shows that ICT acts as a filter for uncertainty, both ex-post and ex-ante, in the internationalization process.
Language
English
Keywords
Digital
International Business
HSG Classification
contribution to scientific community
Publisher
Academy of Management Conference
Publisher place
Vancouver (virtual)
Subject(s)
Eprints ID
260840