Can Digital-Intelligence Transformation Enhance the Depth and Breadth of OFDI? An Empirical Study Based on the Value-driven Perspective

Deng Haoying; Yi Changjun; Zhang Jipeng

doi:doi:10.16538/j.cnki.fem.20251204.103

Summary

Amid volatile international conditions, digital and intelligent transformation creates new growth momentum for export-oriented enterprises by enabling “value leapfrogging” to optimize overseas investment structures. Analyzing Shanghai/Shenzhen A-share listed firms with outward direct investment (OFDI) during 2010-2024, this study examines how digital and intelligent transformation affects OFDI depth and breadth from a value-driven perspective. Results demonstrate that digital and intelligent transformation, as a critical organizational upgrade process that reshapes the internal value chain of enterprises, can significantly enhance the depth and breadth of outbound foreign direct investment (OFDI). Mechanism tests establish that this transformation elevates both ends of the “smile curve” through augmented technological and brand value, thereby strengthening OFDI depth and breadth. The effect intensifies when firms prioritize value-creation activities and management maintains long-term orientation. Heterogeneity analysis reveals stronger impacts among non-SOEs, firms in high-openness regions, and enterprises with substantial market power. Non-high-tech firms primarily achieve OFDI depth gains through digital and intelligent transformation, while high-tech firms attain greater breadth expansion. These findings offer theoretical and practical guidance for optimizing Chinese enterprises' global deployment and high-quality “Go-up” strategy.