Enterprises utilize diversification strategies to overcome regional and industry barriers, serving as a crucial internal driver for enabling domestic economic cycles. This paper aims to explore the driving factors of internal loop strategies from the perspectives of regional expansion and industry diversification. By integrating the Word2Vec machine learning algorithm, a lexicon of executive attention span is constructed. The impact of executive attention span on internal loop strategies is analyzed from the viewpoints of attention-based theory and resource-based theory, considering the moderating effects of digitalization and dynamic capabilities. Using a sample of China’s A-share listed companies from 2011 to 2020, empirical evidence indicates that a broader executive attention span significantly promotes regional expansion and industry diversification behaviors, thus driving internal loop strategies. This effect is more pronounced in enterprises with a higher level of digitalization and stronger dynamic capabilities. Further examination reveals an inverted U-shaped relationship between executives’ focus depth on new market strategies and internal loop strategies, highlighting a potential negative impact of excessive attention concentration. This paper organically combines executive attention span, internal loop strategies, and the capabilities involved in their implementation, thereby expanding and deepening theoretical research on executive attention allocation and corporate diversification strategies.