Digital leadership and the development of firms’ cross-border E-commerce

Cross-border e-commerce offers significant opportunities for firms seeking international market access through digital channels. This study investigates how digital leadership drives cross-border e-commerce development among Chinese enterprises. We define digital leadership as top management's demonstrated commitment to digital transformation, operationalized through the proportion of intangible assets allocated to digitalization initiatives. Using panel data from Chinese A-share listed companies from 2007 to 2023, we measure cross-border e-commerce development through textual analysis of annual reports. Empirical results demonstrate that digital leadership significantly promotes cross-border e-commerce development. Mechanism analysis identifies two mediating pathways: supply chain digitalization and digital technology application depth. Furthermore, government digitalization incentives positively moderate the relationship between digital leadership and cross-border e-commerce outcomes. Heterogeneity analyses reveal that digital leadership effects are more pronounced in large enterprises and state owned enterprises, suggesting that leadership driven transformation proves particularly consequential in complex organizations with substantial resources but potential structural inertia. These findings remain robust across alternative variable measurements, Tobit estimation, exclusion of pandemic years, instrumental variable approaches, propensity score matching, and Heckman selection correction. This research contributes to the literature by proposing an asset based measure of digital leadership that captures actual resource commitment rather than executive background characteristics. The findings offer guidance for managers seeking to translate digital strategy into international market outcomes and for policymakers designing incentive programs that complement firm level transformation efforts.