Digitalisation, robotics, and related Industry 4.0 technologies are widely recognised for their potential to profoundly reshape firms’ productivity and business models. For instance, digitalisation changes how manufacturing firms operate by increasing their investments in digital infrastructures and digital-based services, while also fostering the rise of fully digital firms that can operate without physical assets.

However, when it comes to understanding how these technologies influence firms’ sourcing and sales strategies in international markets, the evidence remains limited. The existing literature in international business and international economics largely relies on frameworks developed for manufacturing firms, whose output mainly consisted of physical goods. Yet, can these frameworks still explain the internationalisation of manufacturing firms that now derive much of their value from digital-based services rather than tangible products? How can we analyse the competitiveness of born-digital firms that sell globally through online platforms without establishing a physical presence abroad? How might global value chains evolve when advanced robotics automates activities that were previously outsourced?

To provide initial answers to these questions, the seminar will present recent empirical evidence on how firms use Industry 4.0 technologies to organise their international value chains. It will feature insights from a forthcoming Industry and Innovation special issue, with its editors presenting key findings and discussing their main implications for research and policy.