Digital internationalisation: dependence in multinational enterprise network and subsidiary performance

It has now become necessary for firms to internationalise in this current era of globalisation. When combined with internationalisation, digitalisation is the current research trend for scholars as it impacts the international business landscape and creates opportunities for new analysis and growth. Digitalisation is transforming the locus of entrepreneurism opportunities and practices by creating more opportunities for internationalisation. The use of digital technologies creates new opportunities and leads to the structural and strategic transformation of Digital Multinational Enterprises (DMNEs). This research focuses on the influences of one-way and mutual dependence among parties in the DMNE network on a subsidiary's performance. The data herein are drawn from Taiwanese MNEs that operate in digital-related industries, as Taiwan is one of the best high-technology centres in the world. The empirical findings show that one-way dependence creates a curvilinear (U-shape) relationship with subsidiary performance, whereas mutual dependence positively influences subsidiary performance. We also move further to explore the moderating effects of subsidiaries' autonomy and capabilities. This research contributes to the current knowledge of the international business literature concerning DMNE network dependences based upon the resource dependence theory as well as offers theoretical and managerial implications for these emerging market firms that internationalise digitally.