Digital transformation and internationalization rhythm: evidence from Chinese firms

Purpose With the global situation becoming increasingly complex and uncertain, the rhythm of internationalization processes has become a significant decision for firms when they expand internationally. Digital transformation, as a disruptive change trend, may have a dramatic impact on firms' internationalization rhythms. This study aims to answer two questions: First, what is the relationship between digital transformation and a firm's internationalization rhythm? Second, how do top management team (TMT) international experience and board vigilance affect this relationship? Design/methodology/approach Based on a sample of Chinese A-share listed companies from 2008 to 2022, this study investigates how digital transformation influences firms' internationalization rhythms and examines the moderating roles of TMT international experience and board vigilance. Findings The results show that digital transformation is positively associated with the irregular rhythm of firm internationalization, and this positive relationship is moderated by TMT international experience and board vigilance such that it is strengthened when the TMT has more international experience and weakened when the board has higher vigilance. Originality/value This study suggests that digital transformation can promote firms' irregular internationalization rhythms through the lens of the dynamic capability theory, enriching the antecedent research of internationalization rhythm from a capability perspective. Moreover, this study enriches research on the Uppsala internationalization process model from the perspective of digital transformation, contributing to its development in the digital era. In addition, this study suggests that TMT international experience and board vigilance are two critical boundary conditions for the relationship between digital transformation and internationalization rhythm.