Abstract
•Digitization and globalization have converged to create a new normal of global connectivity, fortifying deeper, broader, and more intricate connections between nations, businesses, and individuals. Digital global connectivity signifies both a dominant feature of the new era of international business and a critical catalyst to address uncertainties in this new era.•Digital globalization can potentially generate new OLI advantages (digitization-enabled Open resources, Linkages, and Integration advantages). Digital architecture enables MNEs to more effectively access to global open resources, work with global partners, connect to worldwide customers, and orchestrate intra-organizational activities.•Dunning’s OLI advantages remain relevant, yet digital realities alter or modify the degree and ways of such relevance. Digital technologies and data analytics make distance and cost factors less relevant and innovation and speed more important.•Digital globalization generates more opportunities through open innovation platforms and global collaborative networks. It nourishes global business ecosystems characterized by more flexible forms of interfirm linkages and real time linkages with global consumers. Digital connectivity skills also strengthen the firm’s success in integrating worldwide operations, both internally and externally.
Digitization and globalization have converged to create a new normal of digital globalization, fortifying deeper, broader, and more intricate connections between nations, businesses, and individuals. This connectivity has redefined who participates in globalization and how international expansion unfolds. This new reality raises a series of complex issues that challenge existing IB theories and conclusions. I submit a new lens toward internationalization advantages for multinationals: new O (open resource advantage), L (linkage advantage), and I (integration advantage). While these new OLI advantages are complementary and coupled with traditional OLI (ownership, location, and internalization) advantages, digital globalization slackens conventional OLI benefits and solidifies the new ones. This article offers insights into how multinationals leverage new OLI advantages and manage global business with digital connectivity in order to improve speed, flexibility, orchestration, and efficiency for both interfirm and intrafirm activities.
