Science Research Management ›› 2025, Vol. 46 ›› Issue (6): 84-92.DOI: 10.19571/j.cnki.1000-2995.2025.06.009

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A study of the impact of digital transformation on the geographic layout of overseas subsidiaries

Zhao Xiaoyang1,2, Yi Changjun1,3, Zhang Jipeng4   

  1. 1. School of Business Administration, Huaqiao University, Quanzhou 362021, Fujian, China; 
    2. Lingnan College, Sun Yatsen University, Guangzhou 510275, Guangdong, China;
    3.Fujian Province Research Center for Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era, Huaqiao University, Quanzhou 362021, Fujian, China;
    4. School of Economics and Finance, Huaqiao University, Quanzhou 362021, Fujian, China
  • Received:2024-03-12 Revised:2024-11-27 Online:2025-06-20 Published:2025-06-06

Abstract:    Multinational enterprises (MNEs) are an important link in the development of dual circulation economy. How to optimally configure the geographic layout of MNEs′ overseas subsidiaries is currently an important topic of academic interest. Using the data on Chinese MNEs from 2008-2021 as a sample, this study empirically examined the mechanism of corporate digital transformation on the diversification of overseas subsidiaries′ geographic layouts. It further examined the moderating effects of executives′ overseas work experience. The study found that digital transformation significantly contributes to the geographic diversification of overseas subsidiaries. The executives′ overseas work experience enhances the effect of digital transformation on the geographic diversification of overseas subsidiaries. The mechanistic analysis showed that digital transformation facilitates geographic diversification of foreign subsidiaries mainly by increasing firm productivity and enhancing dynamic capabilities. The findings will provide a new theoretical framework and empirical evidence to test the facilitating effect of digital technology in MNEs′ overseas investments.

Key words: multinational enterprise (MNE), digital transformation, diversify the geographic layout of overseas subsidiary, overseas work experience of executives