Digital Capital and Export Performance

While digital technologies are widely perceived as drivers of export performance, this study takes a critical look at the potential risks of holding digital capital (DC) - firms’ entrenched organizational structures and diverse business activities may complicate the realization of DC’s benefits. Employing resource-based view, we address two central questions: What effect does DC have on export intensity, and under what conditions can DC be effectively harnessed? Findings from longitudinal data indicate that (1) DC’s risks overshadow its benefits in improving export intensity, (2) DC can be materialized when the firm’s digital orientation is in place, and (3) DC’s negative effect intensified when the informal institutional distance is great. The findings offer early evidence on how DC helps achieve sustainable competitive advantages in global markets.