The theory of multinational enterprises in the digital era: state-of-the-art and research priorities

Purpose Deglobalization and the coronavirus disease 2019 (COVID-19) pandemic have severely hindered multinational enterprise (MNE) investment. At the same time, digital technology is seriously challenging it with traditional production factor flows. Few studies have realized that the impact of digitalization is not limited to either transaction costs or the location-boundness of firm-specific advantages (FSAs), but extends to profound changes in the fundamental essence of MNEs. There is still limited understanding of this body of knowledge as a whole, including how its subtopics are interrelated. This study took the production factor change perspective to review MNE theory in the digital era. Therefore, this study aims to identify any upcoming and undeveloped themes in order to provide a platform suited to direct future research. Design/methodology/approach This paper presents a summary and a review of 151 articles published between 2007 and 2020. Such review was conducted to systematically explain the connotations and influential mechanisms of digital empowerment on MNE theory. This was achieved by using the CiteSpace citation visualization tool to build a keyword co-occurrence network. Findings The research findings pertain to how digitalization expands, breaks through, and even reshapes traditional MNE theory from four distinctive angles: the influential factors of internationalization, the process of internationalization, competitive advantage, and location choice. The findings are followed by the presentation of future research directions. Originality/value This paper presents an examination of MNE theory in the digital era from the perspective of production factor change. In doing so, it identifies significant theoretical innovation opportunities for future scholarly research priorities.