Digital Transformation and Innovation Performance of Selected Manufacturing Firms: A Policy Guide for Accelerating Innovation Performance

This study investigates the relationship between digital transformation and innovation performance in selected manufacturing enterprises, with a particular focus on the mediating role of dynamic capabilities. Regression and correlation analyses reveal that digital transformation significantly enhances innovation performance, particularly in technological advancement, service innovation, and management innovation. The findings indicate that enterprises investing in digital technologies achieve enhanced innovation outcomes, enabling them to better respond to market demands and stay competitive. Additionally, the study reveals that dynamic capabilities—specifically opportunity perception, opportunity grasping, and resource integration—partially mediate the relationship between digital transformation and innovation performance. This suggests that while digital transformation directly drives innovation, its impact is amplified through the development of dynamic capabilities, enabling firms to adapt more effectively to changing environments. The study underscores the importance of fostering both digital transformation and dynamic capabilities for sustainable innovation and long-term competitiveness in the manufacturing sector.