The multinational enterprise, capabilities, and digitalization: governance and growth with world disorder This essay revisits my 2014 JIBS article about the potential for integrating international business internalization theory with a strategic management capabilities perspective. It recaps the capabilities framework with an emphasis on the learning required of emerging market multinationals and illustrates this with the case of Hyundai Motor Company’s internationalization and growth. It also discusses two aspects of the global economy that have become more prominent since 2014 in shaping international business: geopolitical uncertainty and digitalization. A rise in geopolitical tensions appears to be rebalancing the relationships between multinationals and home/host governments. Digitalization facilitates international business; but it adds new vulnerabilities by (further) accelerating competition, enabling new rivals, and introducing systemic risks into digital supply chains. Impli...
Digital technology and service tradability: evidence from patent innovations and knowledge utilization Digital technologies such as artificial intelligence and industrial robots have diminished employment opportunities in manufacturing trade, prompting stakeholders to explore alternative tradable sectors that capitalize on low-cost labor advantages. This paper analyzes the impact of digital technology innovations and spillovers on the tradability of services by matching input-output data and patent data from 76 economies spanning from 1995 to 2020. The empirical results indicate that patent innovations in the information industry itself will inhibit the tradability of domestic services, whereas domestic and international digital technology utilizations facilitate it. Given that the positive effects of domestic digital technology spillover outweigh the negative ones, digital technology is poised to comprehensively empower the tradability of services. The impact of different digital tec...