Volume 19 / Issue 2 / Pages: 35-56 / Papers in the same Issue

Mediating the Paradoxes of (De-)Internationalization through Digital Platforms

Festing, C., & Proff, H.

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Abstract: Due to risks in the supply chain and the need for sustainability, among other things, concepts of de-internationalization are increasingly being considered, while at the same time the potential of growing markets motivates MNEs to continue investing in international operations despite the often large distances involved. This can lead to paradoxical tensions in companies between motives for scaling back and expanding the international footprint, particularly in the capital-intensive automotive industry. To mediate these tensions in the sense of paradox theory from a âboth-andâ approach, a link is made to transaction ecosystems based on digital platforms that enable the exchange of complementary resources across national borders with reduced transaction costs. Hypotheses are theoretically derived and then empirically tested using structural equation modeling in a quantitative study of 286 internationally active automotive companies. Although the results of the study confirm the suitability of such digital platforms for mitigating paradoxical tensions in international business, they also show that the performance impact of these ecosystems for companies is still low and needs to be further improved through the optimized use of various platform effects.

Keywords: digital platforms, ecosystems, paradoxical tensions, de-globalization, international operations, automotive industry

DOI: 10.69864/ijbsam.19-2.187

Type: Research Paper // Submitted: 2023-03-15 // Accepted: 2024-10-13 // Published: 2024-11-20

Download Citation: BibTex // PDF Downloads: 211 // PDF Filesize: 552Kb

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