How Does Digital Technology Innovation Affect the Internationalization Performance of Chinese Enterprises? The Moderating Effect of Sustainability Readiness

Abstract

The existing literature highlights the role of digital technology innovation in driving the international performance of enterprises. However, it has largely overlooked the nonlinear relationships that emerge from their quest for contributing towards global sustainable development goals. Our study explores the nonlinear influence of digital technology innovation on firms’ international performance, further investigating how this relationship may be moderated by sustainability readiness, as measured through sustainable technological capabilities and sustainable certification standards. Using a double fixed effects model on a sample of 269 Chinese listed digital enterprises from 2012 to 2019, our findings reveal a U-shaped relationship between digital technology innovation and internationalization performance, which is more pronounced for firms with superior sustainable technological capabilities. However, the influence of sustainable certification standards is less noticeable. We further identify notable differences between the digital service and digital manufacturing sectors, thereby enriching our comprehension of the complex relationships between digital innovation, sustainability readiness, and international performance.