The Impact of Digitisation on International Business Discussion Assessment Answer

International Business

It is noteworthy that technology has agitated and increased changes in the majority of industries across the globe. Digitisation indicates the advancing adoption and usage of digitalized technologies by a business. It is considered the novel paradigm of the 4th industrial revolution which marks a disrupted technology. It is said that the implementation of digitalised technology has been forming novel corporate models and which is deemed the most relevant challenge to be addressed to seek global strategies. The internationalisation of businesses is progressively reliant on their digitalisation (Nambisan 2022). The main argument in this essay is that digitisation plays a crucial role in internationalisation of businesses. This essay is aimed to discuss the impact of digitisation on international business with the help of real-world examples.

It is stipulated by Del Giudice et al. (2022) that a vital impact on international business is the arrival of digitisation generated by technological advancement. It is stated that the diffusion of mobile phones, pervasiveness of fast speed and wideband connectivity, develops a leading exposure of digitalised innovation. It is further found that digitalised innovations like virtual software, and mobile apps develop prospects for quick global expansion. Due to this, the pace of knowledge acquisition of the international market is too quickly accelerated. It has been indicated further that the pace of expansion is associated with the capability to seize and to exchange massive information via the business interaction with its targeted clients. It enables the business to comprehend the desires of its clients promptly and to tailor its strategies to the marketplace with peculiar services (Lee et al. 2019). It has been found further that the business can now adopt digitised technologies to target clients in any geographic location via prompt experiments. Moreover, attaining the information from such experiments enables the business to acquire adequate experiential know-how to guide their resources and services and to tailor it to the advantage in the target market, irrespective of their locality. Digital techniques like social channel graphing enables the spread of peer-to-peer notions which subsequently improves the business capability to predict the consequence of their approach. It ultimately assists the business to place a more localised marketing approach which is better targeted at the international market (Cassetta et al. 2020).

It has been asserted by Velinov et al. (2020) that the digitisation depicts a vital driver of the business’s internationalisation offering novel opportunities and prospects in terms of business exports. It is found that the digital transformation can stimulate export-related activities lessening the transaction costs. It has the ability to favour the relation and the integration between corporate partners, vendors, clients, and internal stakeholders making a collaborative platform. Moreover, it possesses capability in declining distances and entry-linked costs, and nurturing higher levels of global integration of communication, information, and other techniques. Besides, it has been stipulated that digitisation can enable businesses to lessen investments and costs at the time of expanding globally, assisting to recognize and to exploit marketplace prospects internationally in a simple, prompt, and more effective manner. Besides, digitisation has the capability to increase and advocate robust export competitiveness that can lead to feasible export efficiency. It has been stated that the blockchain technology has the ability to lessen the expenses and time needed to stimulate trade financial transactions which rely on the third party insurances and refine management of SCs (supply chains) by offering real time data on the origin and goods’ movement. Moreover, this technology can assist to stop the proliferation of false documents and numerous customs-linked certificates (Li et al. 2023).
The digitisation has surged the scope, scale, and pace of trade. This enables businesses to bring forth novel goods and services to a massive digitally-associated clients around the world. This has enabled the businesses particularly small-scale companies to utilise novel and imaginative digital tools to defeat barriers to development, assisting facilitate payments, allowing cooperation, evading investment in fixed assets via the usage of cloud services and utilising financing means like crowdfunding (Shaheer et al. 2022). It can be said that the development of virtual channels has contributed to a growing number of smaller parcels being sold around global borders. It has been giving rise to numerous problems for policymakers, ranging from the physical management of parcel trace, via to the implication of risk management, and income implication with respect to the gathering of tariff and taxes. It has been stated that the prompt technical progressions enable the growth of services in global cross-border trade (Gao et al. 2021). ICT (information and communication technology) services make the foundation of digitised trade, offering the required network infrastructure, and supporting the digitalization of other kinds of services. The novel techniques further are found to facilitate the growth of digitally facilitated services which are advocated by a set of novel services formed on data-driven imaginative solutions like cloud computing (Pålsson and Sissonen 2023).
The main argument of this essay was that digitisation has a positive impact on international business. From the above, it can be concluded that digitisation is deemed as a crucial step to internationalise initially and quickly. It can further be inferred that the quicker a business comprehends the advantages of utilising digital techniques, the quicker it can refine its decision-making procedures and surge its internationalisation pace. It can also be concluded that the digitisation assists to preserve close relationships, reaches novel markets with significantly lesser investment, and develops superior services in contact with clients and partners. The implication for the business leaders is that the digital transformation can positively as well as negatively influence the business internationalisation at the business, individual and macro level.

References

Cassetta, E., Monarca, U., Dileo, I., Di Berardino, C. and Pini, M., 2020. The relationship between digital technologies and internationalisation. Evidence from Italian SMEs. Industry and Innovation, 27(4), pp.311-339. https://doi.org/10.1080/13662716.2019.1696182
Del Giudice, M., Di Vaio, A., Hassan, R. and Palladino, R., 2022. Digitalization and new technologies for sustainable business models at the ship–port interface: A bibliometric analysis. Maritime Policy & Management, 49(3), pp.410-446.https://doi.org/10.1080/03088839.2021.1903600
Gao, Q., Cui, L., Lew, Y.K., Li, Z. and Khan, Z., 2021. Business incubators as international knowledge intermediaries: Exploring their role in the internationalisation of start-ups from an emerging market. Journal of International Management, 27(4), p.100861.https://doi.org/10.1016/j.intman.2021.100861
Lee, Y.Y., Falahat, M. and Sia, B.K., 2019. Impact of Digitalization on the Speed of Internationalisation. International Business Research, 12(4), pp.1-11. https://doi.org/10.5539/ibr.v12n4p1
Li, F., Zhao, Y., Ortiz, J. and Chen, Y., 2023. How Does Digital Technology Innovation Affect the Internationalisation Performance of Chinese Enterprises? The Moderating Effect of Sustainability Readiness. Sustainability, 15(14), p.11126.https://doi.org/10.3390/su151411126
Nambisan, S., 2022. Digital innovation and international business. Innovation, 24(1), pp.86-95.https://doi.org/10.1080/14479338.2020.1834861
Pålsson, K. and Sissonen, M., 2023. AI and cloud computing are changing the way international companies operate-or do they, quite yet? A single case study on how digital tools within a digital company’s value chain has affected its internationalisation process.
Shaheer, N., Kim, K. and Li, S., 2022. Internationalisation of Digital Innovations: A Rapidly Evolving Research Stream. Journal of International Management, 28(4), p.100970. https://doi.org/10.1016/j.intman.2022.100970
Velinov, E., Maly, M., Petrenko, Y., Denisov, I. and Vassilev, V., 2020. The role of top management team digitalization and firm internationalisation for sustainable business. Sustainability, 12(22), p.9502.https://doi.org/10.3390/su12229502

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