Adaptive capacity configurations for the digital transformation: a fuzzy-set analysis of Chinese manufacturing firms

Abstract

PurposeEmerging in recent years, digital transformation has become an effective approach for firms to remain competitive in the digital economy. Although this trend has received increasing interest in the business world, there remains a lack of empirical research on the organizational capacities that facilitate digital transformation. To fill this research gap, we investigate the relationship between adaptive capacity configuration and the performance of digital transformation.Design/methodology/approachWe use fuzzy-set qualitative comparative analysis (fsQCA) to identify the impact of adaptive capacity on the digital transformation performance of 38 firms in the household appliance manufacturing, light manufacturing and clothing manufacturing industries (HAMI, LMI, CMI).FindingsOur analysis reveals a Technology-driven transformation configuration for the HAMI, a Market-driven transformation configuration for the LMI and a Market and Management-driven transformation configuration for the CMI, as well as identifies environment scanning capacity as a common basic adaptive capacity. The first configuration is rooted in the innovation mechanism, and the last two configurations are rooted in the integration mechanism.Practical implicationsEnterprises in different industries with unique technology levels require distinctive capacity configurations to implement digital transformation. Each dimension of adaptive capacity plays a particular role in each industry. Environmental scanning capacity requires firms to be agile in their interactions with the digital world and to collect information about the environment.Originality/valueThis study enriches and expands the dimensions of adaptive capacity, and we provide a perspective for researching the digital transformation of manufacturing enterprises through adaptive capability configuration.