The Impact Pathways of Digital Transformation on Outward Direct Investment in Shandong Province's Manufacturing Sector

Abstract

Against the backdrop of rapid digital technology development, digital transformation has increasingly become a key pathway for enterprises to enhance their international operational capabilities. Based on data from Shandong Province's manufacturing A-share listed companies from 2011 to 2023, this study employs empirical methods such as the two-way fixed effects model, Probit model, and two-stage least squares method to explore the impact pathways of digital transformation on enterprises' foreign direct investment. The results indicate that digital transformation significantly promotes the scale of enterprises' foreign direct investment, and this conclusion remains valid after robustness and endogeneity tests. Mechanism analysis shows that digital transformation indirectly promotes enterprises' foreign investment behavior by improving supply chain operational efficiency. Heterogeneity tests further reveal that this promotional effect is more pronounced in state-owned enterprises and large enterprises, while it is not significant in non-state-owned enterprises and small and medium-sized enterprises. The study reveals the intrinsic logic between digital capability development and corporate internationalization, providing valuable insights for policymakers and business managers on how to effectively expand overseas markets through digital transformation.