Cross-Border Data Governance and International Business Expansion in the Digital Economy

Abstract

In the digital economy era, cross-border data flows have become increasingly intertwined with enterprises' international operations. However, the relationship between data governance and overseas growth is not singular. This paper, combining institutional theory, the resource-based perspective, and dynamic capability theory, explores how cross-border data governance may influence the international expansion of digital enterprises. By reviewing the evolution of relevant literature on cross-border data governance and international business, this paper constructs a mechanism model connecting the regulatory environment, enterprise capabilities, and international expansion performance. Research shows that the impact of cross-border data governance on enterprise internationalization is not simply one of promotion or hindrance; its effects can vary significantly under different institutional environments, levels of technological readiness, and organizational adaptability. This further prompts the consideration that enterprises should not remain passively compliant but should gradually cultivate strategic capabilities oriented towards governance.