How does a closed social network facilitate the impact of blockchain on corporate digital innovation performance?

While corporate digital innovation has been widely studied, existing single-dimensional analyses fail to capture its multifaceted nature. This study develops an integrated theoretical model examining how external environments and internal dynamic capabilities jointly influence corporate innovation performance, with a focus on blockchain technology and closed social networks. Using a dataset of 297 cities from 2013 to 2020 and a difference-in-difference-in-difference model, the findings reveal that closed social networks enhance knowledge search efficiency, while blockchain technology strengthens internal dynamic capabilities, collectively driving digital innovation performance. Firms embedded in closed networks outperform those in open ones by 0.4181 units, with stronger effects in non-knowledge-intensive firms. Additionally, blockchain technology reshapes traditional innovation models by optimizing R&D and information management. These findings provide insights into corporate digital innovation mechanisms and offer practical guidance on blockchain implementation in evolving business environments.