Digital technology, broadly defined as advanced electronic systems, tools, software and hardware that enable the collection, storage, distribution, and analysis of large amount of data (McKinsey, 2018; United Nations, 2017; 2020a) are increasingly shaping the conduct of individuals, businesses, and societies. Some of the particularly disruptive digital technology include artificial intelligence (AI), the internet of things (IoT), additive manufacturing, robotics, business analytics, cloud-based computing, and blockchain (Agarwal, Gans, Goldfarb, 2019; Banalieva & Dhanaraj, 2019; Dachs, Kinkel & Jäger, 2019; Hudson, 2019).
Although terms like ‘the cloud’ and ‘online’ may suggest that digital technologies are not geographically anchored, such a view is not true. These technologies are physically situated in locations that provide natural cooling (Cutler, Fowers, Kramer & Peterson, 2017) and/or cheap access to energy (Greenstein & Fang, 2020; Jaeger, Lin, Grimes & Simmons, 2009). They connect users through underwater cables (Malecki & Wei, 2009) and are anchored in value chains, business processes, and end products and services where they bring often unprecedented effects on efficiency, functionality, and performance (UNCTAD, 2017; 2020). Meanwhile, the spatial embeddedness of these infrastructures has become tightly intertwined with geopolitical competition and strategic rivalry.
For example, the accelerated digitalization of the workplace since the start of the pandemic has significantly reduced barriers for firms to develop a fully functioning digital workplace and as such many ‘office-based’ jobs can be offshored to locations that are less costly. Aside from these ‘office’ jobs, digitally enabled automation in production sites can lead to job losses for those working outside of the office and ‘on the ground’. Moreover, greater interconnection heightens exposure to cyber intrusions, surveillance, and politically motivated disruptions to data flows, placing digital security and control firmly on the geopolitical agenda and shaping firms’ international operations and location decisions.
In short, the transformative effects of digital technologies in different regions and countries are multifaceted and often entail both opportunities and challenges, or positive and negative consequences. These effects can play out in the locations of businesses, institutional configurations, industrial leadership, cross-border competitive dynamics, and more generally the global structure of the value chain and digitalized economy (Gregory, Henfridsson, Kaganer & Kyriakou, 2020; He, Meadows, Angwin, Gomes & Child, 2020). As digital infrastructures and capabilities are deeply embedded in national security strategies and geoeconomic competition, IB increasingly unfolds within a fragmented and politically contested digital landscape.
Digital Innovation and Emerging Economies
Historically, the conventional view was that technological leadership resided predominantly in North America and Europe (Anupama & Tallman, 2018; Bathelt & Cohendet, 2014; Beugelsdijk, McCann & Mudambi, 2010; Howells & Bessant, 2012), however the extraordinary technological lead taken by emerging economies such as China and India combined with the poor innovation record of European-based firms in recent years has presented a starkly different picture.
For example, the questions of changing spatial patterns of production, investments, and division of labour due to digitization are currently much discussed in the context of the geographies of global value chains (e.g., Butollo, 2020; Fuchs, 2020; Zhan, 2021; Zhao, Dilyard & Jones, 2025). However, it remains unclear whether digital technology in emerging economies will generate and thrive through network externalities. In other words, it is unclear whether the effect will be greater concentration or instead enable dispersed operations. This calls for a reconsideration of the relationships between firms where most of the technology still originates – North America and Europe. Moreover, given that digitalization is likely to affect current investment patterns, it remains to be understood how this affects or will affect those emerging economies and whether they will benefit or become further marginalized as a result of the technological and business transformations and the geopolitical contestation that accompanies them.
At the regional level, digital or digital-enabled business activities play an increasingly central role in shaping competitive positioning, innovation pathways, and regional integration. Specifically, debates and discussions in recent economic geography literature have started to pay attention to unfolding both the positive and negative implications of digital technology for cross-border business activities and regional competitive dynamics in different contexts. For example, the question of new opportunities of international market access and participation in global digital ecosystems in low-income countries has been tackled in different emerging strands of debate. One, digitization offers new opportunities for SMEs in those contexts because of increased ICT-enabled connectivity (Foster, Graham, Mann, Waema & Friederici, 2017; Hartmann, Nduru & Dannenberg, 2017).
In this call, we are particularly (though not exclusively) interested in studies that relate to the following five broad research themes: 1. Digital platforms and MNE innovation strategy; 2. Digital technological innovation and MNE subsidiaries; 3. Digital infrastructure and firm internationalization; 4. Digital ecosystems and MNEs; 5. Digital sovereignty and MNE strategy. We discuss them in more details next.
The Five Main Themes
Theme 1: Digital platforms and MNE innovation strategy
The role of proximity in innovation has been extensively explored in the literature, traditionally viewed as essential for collaboration, knowledge sharing, and trust-building among innovators (Boschma & Frenken, 2010; Ozman, 2009). Proximity has historically facilitated networking within innovation systems, often discussed in the context of clusters and agglomeration (Carbonara, 2004; Oyeyinka and McCormick, 2007). While this proximity-centred approach has proven effective in many developing countries, the rise of digital technologies has called into question the necessity of physical proximity, especially for MNEs that operate across dispersed geographies.
We call for research to contribute to the limited insights on the implications of digital transformation for MNE innovation, particularly within developing economy context. As MNEs increasingly rely on digital networks, a deeper understanding of how proximity – redefined through digitalization – affects their strategies and performance in emerging economies is essential. This research should offer significant insights for both MNE strategy and policy recommendations, guiding digital transformation to maximize innovation and growth potential across emerging economies.
Theme 2: Digital technology and MNE subsidiaries
Recent discussions concerning MNE subsidiary management have highlighted gaps in understanding how technological shifts, particularly the rise of the digital economy, are transforming the roles and structures of MNE subsidiaries (Meyer, Li, and Schotter, 2020). As digital transformation reshapes global business, there is an urgent need to explore how it impacts MNE subsidiaries, especially in emerging markets. This includes examining the digital transformation journeys of MNE subsidiaries in these markets and how digitalization leads not only to reshoring or back-shoring but to a fundamental reorganization of MNE operations and a new geography of international functions.
Theme 3: Digital infrastructure and firm internationalization
Digital technologies are increasingly attracting substantial investments by governments in emerging economies, with the expectation that improving national digital infrastructures will enhance the competitiveness of MNEs operating in these regions. By leveraging digital environments, MNEs could engage more effectively in global knowledge flows, connect with suppliers and customers worldwide, and pursue an array of internationalization activities such as exporting, market entry, international collaborations (Luo, 2022). However, there is limited understanding of the conditions under which these digital environments truly support the global competitiveness of MNEs in emerging economies, particularly with respect to different modes of internationalization such as exporting, FDI, strategic alliances, and platform-based international expansion. This gap signals a critical area for further research.
Theme 4: Digital ecosystems and MNEs
Understanding how geopolitical and spatial contexts drive digital ecosystem formation is crucial. For instance, the expansion of China’s Digital Silk Road, the rise of India’s sovereign digital infrastructure, and the EU’s push for regulatory influence (e.g., GDPR, AI Act) reflect the emergence of distinct blocs that MNEs must strategically navigate. As digital trade becomes increasingly politicised, research is needed to reveal how MNEs can build strategies that bridge or operate across these competing digital regimes, manage ecosystem lock-in risks, and respond to shifting regional alliances. This line of inquiry has significant potential to reshape traditional IB theory by highlighting how geopolitical alignment, rather than demographic change, structures the evolution of digital ecosystems and MNE strategy (Witt, 2019).
Theme 5: Digital sovereignty and MNE strategy
Geopolitical rivalries are becoming central to the governance of digital technologies, and many emerging economies are at the heart of this transformation. The ongoing US-China technology competition exemplifies how access to semiconductors, AI, cloud services, and digital platforms is increasingly politicized, with profound implications for firms operating in the region. Trade wars, technology sanctions, and competing standards (e.g., for 5G, data protection, cybersecurity, and AI ethics) create fragmented digital ecosystems, forcing MNEs to adapt their strategies to multiple, and often conflicting, regulatory and institutional frameworks (Han, Lukoianove, Zhao & Liu, 2024).
Journal Information: Scopus Journal Q1, H-Index 44
Submissions Information
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Key Deadlines
Opening date for manuscripts submissions: 01/07/2026
Closing date for manuscripts submission: 30/11/2026
