Abstract
ABSTRACT How to select an appropriate R&D strategy and increase innovation capability during the digital transformation process is an urgent management concern. Using the FsQCA with 172 Chinese manufacturing firms, this study examines the configurational impacts of R&D strategy, digital transformation, and organisational flexibility on innovation capability. The results reveal four configurational paths of producing high innovation capability and three configurational paths of producing not-high innovation capability. Internal R&D strategy is a core element in the configurational path. External R&D strategy, business process digitisation, and resource flexibility play a vital role in the configurational path. Therefore, in the era of digitalisation, these findings provide some implications for firms to choose R&D strategy and enhance innovation capability.
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