Managerial routines and internationalisation: Mediating role of digital capacity
Managerial routines and internationalisation: Mediating role of digital capacity

Summary/Abstract: Objective: The article aims is to verify whether the adoption of managerial routines, namely, monitoring performance and setting targets and incentives, affects the probability and intensity of firms' export activity and whether digital capacities act as a mediating mechanism between managerial routines and firms' internationalisation. Research Design & Methods: We used firm-level data from the World Bank Enterprise Surveys conducted in Poland in 2025. We applied a quantitative approach, combining logistic regression for internationalisation propensity, fractional logit regression for internationalisation intensity, and mediation analysis. We measured managerial routines with three dichotomous indicators: monitoring, target setting, and incentives. We operationalised digital capacity as firms' online presence. Findings: All three managerial routines are positively and significantly associated with the likelihood and intensity of internationalisation. In addition, we observed that digital capacity partially mediates the relationship between managerial routines and the likelihood of internationalisation, suggesting that firms with more structured managerial routines are more likely to internationalise, partly because they are more likely to adopt basic digital tools. Implications & Recommendations: The findings suggest that relatively managerial routines, such as systematic monitoring, target setting, and incentives, may strengthen firms' international competitiveness both directly and indirectly through digital capacity development. Therefore, managers should treat digitalisation not as a standalone technological investment, but as part of a broader system of managerial routines and governance mechanisms. Contribution & Value Added: The research contributes to the international business literature by integrating research on managerial routines and digital transformation within an empirical framework. It also extends the resource-based view and dynamic capabilities perspective by identifying digital capacity as a mediating mechanism between internal management systems and firms' internationalisation.

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