The antecedents and outcomes of dynamic capabilities in digital transformation: a study of Chinese manufacturing companies

The rapid evolution of digital technologies has underscored the need for firms to develop robust digitalization capabilities to remain competitive in the global market. This study investigated the development of digitalization capabilities and their effects on digital technology adoption and internationalization in Chinese manufacturing. Additionally, the mediating role of digitalization capabilities in the relationship between commitment and knowledge development processes regarding digital technology adoption is examined. Using a survey of 322 respondents, the hypothesized model is tested via partial least squares structural equation modeling (SEM-PLS). Commitment and knowledge development processes significantly influence digitalization capabilities and digital technology adoption. Digitalization capabilities positively influence internationalization and mediate the relationship between commitment and knowledge development processes and digital technology adoption. Beyond advancing scholarly understanding of how specific dynamic capabilities facilitate technology adoption and international expansion, these findings provide key insights for policymakers and industry stakeholders. Policy measures that encourage firms’ commitments, support knowledge-development initiatives, and incentivize investments in digitalization capabilities can accelerate digital transformation in manufacturing. By integrating dynamic capabilities theory with the Uppsala model in an Industry 4.0 context, this study offers a novel contribution to the literature and provides the first empirical examination to combine these elements in Chinese manufacturing.

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