This paper examines the extent to which the internationalization of digital MNEs can be explained by conventional international business theory. In recent years, as digital MNEs have been able to enter international markets without establishing overseas offices, the need for new theories has been highlighted. Alibaba, the company discussed as a case study in this paper, was able to broker cross-border transactions without involving overseas offices by directly connecting suppliers in China and overseas consumers through AliExpress. However, as bottlenecks, such as rapid delivery and market response, became apparent, Alibaba began making foreign direct investments, such as developing global logistics networks and acquiring local e-commerce companies. This paper demonstrates that the explanatory power of new OLI and P-OLI is high during the cross-border EC phase, facilitating foreign market access, whereas the explanatory power of traditional OLI theory increases again during the subsequent international expansion.
Mizuki Kobayashi (Fri,) studied this question.