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Purpose

This study aims to examine the mechanism through which digital transformation drives disruptive innovation in manufacturing firms, and to understand the roles played by variables such as dynamic capabilities, entrepreneurial orientation, industry concentration and regional digital economy development level in this process, thereby providing insights for corporate decision-making.

Design/methodology/approach

This study adopts a quantitative research method. Using panel data from Chinese A-share listed manufacturing companies from 2011 to 2020, it uses panel regression to test a structural equation model.

Findings

The results indicate that: (1) digital transformation has a significant positive impact on dynamic capabilities and disruptive innovation; (2) dynamic capabilities play a partial mediating role in the relationship between digital transformation and disruptive innovation; (3) entrepreneurial orientation and regional digital economy development level significantly positively moderate the relationship between digital transformation and disruptive innovation; (4) industry concentration significantly negatively moderates the relationship between digital transformation and disruptive innovation.

Practical implications

Corporate decision-makers should actively promote digital transformation to enhance digital capabilities, adhere to a higher degree of entrepreneurial orientation and strengthen dynamic capabilities to pursue disruptive innovation. For government policymakers, active fiscal and tax policies should be formulated to encourage digital transformation, increase investment in digital infrastructure, foster a freely competitive market environment and incentivize enterprises to actively engage in disruptive innovation.

Originality/value

Drawing on dynamic capability theory, this paper reveals the mechanism and boundary conditions through which digital transformation drives disruptive innovation. It deepens the understanding of the relationship between digital transformation and dynamic capabilities, and responds to the theoretical call for exploring the connection between capabilities and disruptive innovation.

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