Leveraging Digital Transformation: Enhancing Subsidiary Performance Through Parent Company Advantages

Adopting a parent-firm perspective, this study investigates how digital transformation and its synergy with the specific advantages of emerging market multinational enterprises affect the performance of overseas subsidiaries. Using panel data from 448 Chinese listed manufacturing multinationals and their 1179 overseas subsidiaries over the period 2011–2021, regression analyses reveal that parent-firm digital transformation significantly enhances overseas subsidiary performance. Moreover, this positive effect is more pronounced when the parent firm exhibits a stronger Institutional void coping capability. The moderating analysis further indicates that the firm’s internal business group network strengthens this relationship, whereas parent-firm host-country experience does not show a significant moderating role. By examining how market multinational enterprises integrate home-country-specific advantages with digital capabilities, and by analyzing the contingent roles of organizational capabilities and host-country experience, this research extends the theoretical framework of multinational enterprises’ competitive advantage in the digital era. The findings provide a theoretical foundation for emerging market firms to enhance overseas operational efficiency and strengthen sustainable global competitiveness through digital transformation.