Modeling Critical Factors of MNCs International Performance in the Context of Digitalization: An Integrated M-TISM and MICMAC Approach

The current trend of digitalization, internationalization, and digital technology are the drivers of enabling new business opportunities that motivate multinational corporations (MNCs) to expand internationally and leverage digitalization in the changing international business ecosystem for enhancing international performance (IP). Many scholars have identified the factors that impact IP of MNCs, but the focus on digitalization is limited. Therefore, using the digitalization lens, this study aims to explore the critical factors (CFs) of MNCs' IP. This study utilizes modified-total interpretive structural modeling (m-TISM) and MICMAC analysis to develop a hierarchical model that outlines the relationship among identified CFs impacting IP of MNCs. A five-level hierarchical model is developed. The findings present that risk acceptance, international orientation, digital capability, institutional voids, and cultural distance experienced by MNCs are the driving factors that impact IP of MNCs. Using the internationalization and dynamic capability theory, this study enhances the understanding of dynamics between identified CFs of MNCs' IP. The proposed hierarchical model provides a structural framework that helps practitioners and researchers understand the interrelation among CFs of MNCs' IP and digitalization in the rapidly evolving landscape of international business.