Can listed company digitization reduce the risk of export failure? Evidence from multisource heterogeneous data in China

Reducing the risk of a firm’s export failure is among the key elements of the superior growth of foreign trade. Additionally, digitization has become a driving force of economic development. This study examines the effect and mechanism of digitization on the probability of export failure via a discrete-time survival model based on multisource heterogeneous data. The results show that digitization reduces the risk of enterprise export failure, effectively prolongs the duration of enterprise exports, and enhances the stability of the export business. From the perspective of heterogeneity, although corporate digitalization is more effective at reducing the risk of export failure in high-technology-intensive industries, it has a weaker effect on firms that primarily export to developed countries. With respect to specific mechanisms, digitization plays an effective role by improving information efficiency, enhancing operational resilience and reducing supply chain risk. This study is conducive to opening the black box of enterprise behavior under digitization and provides scientific support for the sustainable growth of international trade. • Digitization reduces the risk of firm export failure. • The impact of digitization on the risk of firm export failure is heterogeneous. • Information efficiency, operational resilience and reducing risk are mechanisms. • This study opens the black box of firm behavior under digitization.