The impact of digitalization on the internationalization capabilities of manufacturing firms

The purpose of this thesis was to explore the impact of digitalization on the internationalisation capabilities of manufacturing firms. In exploring these concepts, the thesis examined the factors that influence manufacturing companies to embrace innovative technologies as they venture into foreign markets and the internationalization process. The case study applied in this project is Haier Group, one of the Chinese companies with a high level of success in applying innovative technologies and the internationalization process. Haier's success story formed a critical basis for examining how manufacturing firms can internationalize by implementing innovative technologies into a multinational corporation that enjoys a significant market share in the global market. The thesis relied on secondary data obtained from online databases and published documents such as Google Scholar, company websites, and e-libraries. The major search terms applied were digitalization, internalization, manufacturing firms, and foreign market entry strategies. A case study design was applied, and the company was chosen using the purposive sampling technique. The case study provided a better understanding of the practical application of innovation and adaptations that a manufacturing company makes to improve its internationalization success. The findings suggested that digitalization is critical for manufacturing companies that expand their operations into global markets. Various factors influence firms’ digitalization processes, and they relate to organizational culture, structure, and the integration of technologies. In manufacturing firms, findings indicate that digitalization helps optimize resources to enhance efficiency while also improving the productivity of employees. Through its network-based model, Haier has overcome significant challenges to successfully internationalize through the aggressive use of innovative technologies, enabling the firm to diversify its brands of smart home living. Therefore, the research concludes that digitalization is the central key to successful internationalization by enhancing a firm's global competitiveness. The findings of the research are consistent with the theoretical framework. For manufacturing firms, digitalization is essential for their successful internationalization, which ultimately leads to an improvement in their global competitiveness