Leveraging demand-side strategies on the digital platform for global success: The role of innovation speed in non-digital participant firms' internationalization

Yihui Liu, Yi Li, Aiqi Wu and Vikas Kumar

Journal of World Business, 2025, vol. 60, issue 5

Abstract: While the impact of digital platforms on firms’ international performance has become a topic of interest in the international business literature, few studies examine the mechanisms underlying this effect. We draw upon the demand-side perspective to investigate how non-digital participant firms’ demand-side strategies on the digital platform facilitate their international performance, using firms’ innovation speed as a mediator. Utilizing a sample of 3816 Chinese manufacturing firms participating in platforms to internationalize, we find that demand-driven interaction, one demand-side strategy on the digital platform, fosters international performance improvements for non-digital participant firms through facilitating innovation speed; and the benefits of demand-driven interaction in driving innovation speed are more pronounced when firms belong to industries in which there are fewer foreign firms in the home country. Our study adds to current understanding of international business on digital platforms, as well as contributing to studies that apply a demand-side perspective in international business research.

Keywords: Demand-side perspective; Digital platform; Demand-driven interaction; International performance; Innovation (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.jwb.2025.101661

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