Table 1.

Managing digital risks in IB: configurations and propositions

Information processing logic	Exposure to digital risks (information-processing requirements)
Task characteristics such as information intensity determines information-processing needs	A: MNEs with higher information and data intensity will be exposed more to digital risks, especially cyber security risk and regulatory complexity risk B: MNEs with higher information and data intensity will more strongly need to decipher intra- and cross-country risk items
Task complexity and uncertainty determines information-processing demands	A: MNEs with higher geographic diversity will be exposed more to digital risks, including interdependence risk, cyber security risk, and regulatory complexity risk B: MNEs with higher geographic diversity will more strongly need to diagnose intra- and cross-country risk items
Task interdependence among subunits and adaptation pressure heighten information-processing requirements	A: MNEs adopting transnational strategy will be exposed more to all three digital risks than those adopting multi-domestic or global strategy B: MNEs with higher global integration will more strongly need to assess cross-country risk items, while MNEs with higher local adaptation will more strongly need to assess within-country risk items
Task dependence on and connectivity with other firms accentuate information-processing needs	A: MNEs depending more on global platforms and ecosystems will be exposed more to digital risks, especially interdependence risk and cyber security risk B: MNEs depending more on global platforms and ecosystems will more strongly need to assess intra- and cross-country risk items

	Managing digital risks (information-processing capabilities)
Firms need to build information-processing capabilities to meet information-processing requirements	A: Risk analytics, digital intelligence, risk control, and collective actions are among the key information-processing capabilities needed to manage digital risks for international business B: These capabilities are deployed to assess, contain, and mitigate uncertainty, complexity, and risks associated with digital globalization
Information processing capabilities must fit with information-processing demands for organizing effectiveness	A: MNEs exposed more to institutional risk will need to focus more on qualitative risk analytics while those exposed more to information security risk and interdependence risk will focus more on both quantitative and qualitative risk analytics B: Improved risk analytics is essential to satisfy increased information-processing requirements, particularly those caused by information and data intensity, geographic diversity, and global platform participation
Information technologies and intelligence are among critical capabilities to process information	A: MNEs exposed more to interdependence risk and cyber security risk will more greatly need digital intelligence B: Improved digital intelligence is essential to satisfy increased information-processing requirements, heightened by information or data intensity, geographic diversity, transnational strategy, and global platform participation
The fit between information-processing needs and capabilities is an orchestrated effort, and control is a critical capability of this kind	A: MNEs exposed more to interdependence risk and cyber security risk will more greatly need control over third parties B: Improved risk control is essential to satisfy increased information-processing requirements, particularly those escalated by geographic diversity, transnational strategy, and global platform participation
Managing task and institutional environment complexity and uncertainty needs some joint actions by all members facing them	A: MNEs exposed more to regulatory complexity risk and interdependence risk will need more emphasis on collective actions by MNEs facing the same environment B: Improved collective actions are imperative to satisfy increased information-processing requirements, particularly those fortified by global platform participation and geographic diversity
The information-processing needs–capability fit fosters firm performance	The fit between information-processing requirements and information-processing capabilities and between digital risk types and these requirements or capabilities ameliorate MNE performance in organizational resilience, transaction cost reduction, and internalization advantages