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Purpose

This paper aims to explore how digital capability incompatibility affects knowledge cooperation performance through the mediating effect of digital resilient agility and the moderating effect of project complexity in project network organizations (PNOs).

Design/methodology/approach

A cross-sectional questionnaire survey was conducted with 207 middle and senior managers in PNOs. Based on validated questionnaire items and construct definitions, a dynamic panel regression was performed using 292 project-focused firms’ annual reports.

Findings

The results show that digital capability incompatibility facilitates knowledge cooperation performance by enhancing digital resilient agility in PNOs. Increased project complexity strengthens this relationship, promoting better knowledge cooperation performance.

Practical implications

Managers can use partner firms’ diverse digital knowledge to quickly develop technologies and tackle digital transformation challenges, thereby improving knowledge cooperation. They can also evaluate the project environment to manage digitally-supported cooperation effectively.

Originality/value

This research reveals how firms in PNOs transform digital capability incompatibility into knowledge cooperation performance through digital transformation efforts. This research extends the boundary of this relationship to project-level factors and proposes digital resilient agility as a digital transformation effort for knowledge cooperation in PNOs than previous research.

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