Study on the Impact of Foreign Direct Investment on Enterprise Digital Transformation

In the context of global economic integration and the deepening of the digital economy, enterprise digital transformation has become a core strategy for enterprises to enhance competitiveness, while foreign direct investment (FDI) has gradually become an important external driving force for economic development and technological progress. This paper focuses on the impact of FDI on enterprise digital transformation, and explores the internal logic and practical path of this impact through theoretical analysis, mechanism deduction and multi-dimensional impact discussion. Based on theories such as technology spillover, resource-based view and institutional theory, the study holds that FDI affects enterprise digital transformation through four mechanisms: technology spillover effect, resource complementary effect, competitive forcing effect and institutional environment regulation effect. Specifically, FDI promotes the improvement of enterprises' digital infrastructure, the application of digital technology and the optimization of digital organizational management by introducing advanced digital technology, supplementing capital and talent resources, intensifying market competition and improving the institutional environment. However, the impact also shows heterogeneity due to differences in industry attributes, enterprise scale and regional development levels. Finally, the paper puts forward targeted suggestions for enterprises and governments to better utilize FDI to promote high-quality digital transformation of enterprises.

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Publication Details

Journal
Frontiers in Business Economics and Management
Published
2025-08-11
DOI
https://doi.org/10.54097/fs23qf17
Primary Topic
Economic and Technological Innovation
Type
article
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article

Study on the Impact of Foreign Direct Investment on Enterprise Digital Transformation

Jiali Wu
Frontiers in Business Economics and Management
Economic and Technological Innovation
article

Study on the Impact of Foreign Direct Investment on Enterprise Digital Transformation

Jiali Wu
article en

Abstract

In the context of global economic integration and the deepening of the digital economy, enterprise digital transformation has become a core strategy for enterprises to enhance competitiveness, while foreign direct investment (FDI) has gradually become an important external driving force for economic development and technological progress. This paper focuses on the impact of FDI on enterprise digital transformation, and explores the internal logic and practical path of this impact through theoretical analysis, mechanism deduction and multi-dimensional impact discussion. Based on theories such as technology spillover, resource-based view and institutional theory, the study holds that FDI affects enterprise digital transformation through four mechanisms: technology spillover effect, resource complementary effect, competitive forcing effect and institutional environment regulation effect. Specifically, FDI promotes the improvement of enterprises' digital infrastructure, the application of digital technology and the optimization of digital organizational management by introducing advanced digital technology, supplementing capital and talent resources, intensifying market competition and improving the institutional environment. However, the impact also shows heterogeneity due to differences in industry attributes, enterprise scale and regional development levels. Finally, the paper puts forward targeted suggestions for enterprises and governments to better utilize FDI to promote high-quality digital transformation of enterprises.

Frontiers in Business Economics and ManagementVol. 20(2)
Shanghai Dianji University (CN)
Openalex Percentile: Top 72%
Economic and Technological Innovation
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