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Advanced manufacturing firms’ digital transformation and exploratory innovation

Author

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  • Xiaokai Li
  • Han Han
  • Huishuang He

Abstract

The impact of digital transformation (DT) on exploratory innovation (EI) in advanced manufacturing firms (AMFs), particularly the influence of external knowledge search (EKS) and knowledge absorptive capacity (KAC), is a crucial research topic. Current empirical studies on the relationship between DT and EI in AMFs from a knowledge-based view (KBV) are limited. This study conducts a systematic analysis of DT’s impact on EI and its mechanisms, focusing on 254 listed firms in China and ‘Made in China 2025’ key areas. Based on KBV, it models the influence of DT on EI. The results indicate a significant positive correlation between DT and EI, with EKS, KAC, and their interactions mediating this relationship. These findings offer new insights into the KBV research pathways for DT and EI.

Suggested Citation

  • Xiaokai Li & Han Han & Huishuang He, 2025. "Advanced manufacturing firms’ digital transformation and exploratory innovation," Applied Economics Letters, Taylor & Francis Journals, vol. 32(10), pages 1414-1420, June.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:10:p:1414-1420
    DOI: 10.1080/13504851.2024.2305665
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