Abstract

Abstract Purpose: This study examines the relationship between digital transformation, innovation performance (product and process innovation), and the degree of internationalization in Korean manufacturing firms. The goal is to explore how digital transformation influences innovation performance and contributes to enhancing firms' degree of internationalization. Research Design, Data, and Methodology: Using data from the 2022 Korean Innovation Survey (KIS) conducted by the Science and Technology Policy Institute (STEPI), this study investigates the impact of digital transformation on product and process innovation performance. It also examines how these types of innovation affect the degree of internationalization. Results: The analysis reveals that digital transformation significantly enhances both product and process innovation performance. Furthermore, these innovation outcomes are positively associated with the degree of internationalization, highlighting their importance in expanding global business activities. Conclusion: While this study focuses on product and process innovation performance, it suggests that future research could examine other forms of innovation, such as organizational or marketing innovation. Additionally, exploring internal and external factors affecting digital transformation across various industries would deepen understanding. This research contributes to the growing literature by linking digital transformation to innovation and internationalization, offering theoretical insights and practical guidance for firms seeking global competitiveness.