Putting Wind in the Sails: The Impact of Data Factor Market Development on Firm Internationalization

ABSTRACT

In recent years, the development of data factor markets has emerged as a key component in promoting the market‐based allocation of production factors. This paper takes data trading platforms as the focal point and empirically investigates the impact of data factor market development on firm internationalization using panel data of A‐share listed companies from 2011 to 2023. Our findings reveal that the establishment of data factor markets significantly promotes firm internationalization, with this conclusion remaining robust after a series of endogeneity corrections and robustness checks. Mechanism analysis reveals that data factor market development enhances firms' internationalization by easing financing constraints and improving supply chain structures, thereby enabling more effective acquisition and upgrading of resources and capabilities. Further analysis suggests that entrepreneurial spirit positively moderates this relationship by strengthening firms' risk‐taking awareness, thus reinforcing the effect of data market development on internationalization. This study advances the understanding of firm internationalization within the digital economy context while offering theoretical insights and practical guidance for enhancing data infrastructure and improving related policy design.