What should multinationals do to win the digital race?
Digital platforms are complex and costly ventures for companies. New research highlights strategies to optimise their efficiency in boosting international sales
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As part of the world’s second-largest economy, Chinese enterprises have become increasingly important in global business and are actively expanding their digital outreach. According to the latest report by the National Data Administration, core industries in China’s digital economy contributed 10 per cent to the country’s GDP in 2023.
Chinese multinational enterprises (MNEs), including tech giants Huawei, Tencent, and Xiaomi are also advancing globally. For instance, Tencent Cloud has seen double-digit growth in international business over the past three years, excelling in Southeast Asia, Japan, the Middle East, and Europe. Thus, it is imperative for MNE managers to prioritise their digital strategies to maximise benefits while minimising costs.
“The overall time and efforts MNEs invest in developing and operating digital platforms impact their international sales in this fast-moving global technological era,” says Li Jingyu, Assistant Professor of the Department of Management at the Chinese University of Hong Kong (CUHK) Business School.
In collaborative research, Professor Li delved into the impact of managerial attention on digital platforms on international sales. The study titled Digital platform attention and international sales: An attention-based view was co-authored with Pan Yigang of York University, Caleb Tse of Nanyang Technological University, and Yang Yi of Shanghai Jiao Tong University.
Digital platform attention refers to the overall focus, effort, and resources that MNEs allocate to managing and optimising their digital platforms. It is a concept derived from the attention-based view theory, which emphasises the significance of managerial attention in influencing firm performance.
“MNEs with more intensive and persistent digital platform attention are more effective in reaching global customers and achieving better international sales, but MNEs with a more diversified or scattered scope suffer from constrained international sales,” says Professor Li.
