Research On the Influence Mechanism of The Linkage Between Institutions and The Markets on Regional Digital Transformation from An Fsqca Perspective

In the wave of global digitalization, regional digital transformation has become the core force in promoting economic development and social change in various countries. Based on the grouping perspective, this study aims to explore the mechanism of institutions and markets linkages on regional digital transformation. Using the fuzzy-set qualitative comparative analysis (fsQCA) method, this study begins with the statistical data at the provincial level in China in 2023. In this model, regional digital transformation is the outcome variable, while institutions (fiscal expenditure intensity, intellectual property intensity, human resource allocation) and the markets (product market, capital market, labor market) serve as the antecedent variables. The research findings demonstrate that:(1) No single condition can determine regional digital transformation. (2) High intellectual property intensity is a core condition for achieving high regional digital transformation in all configurations. (3) There are five linkage pathways between institutions and markets, and different pathways are applicable to regions with different resource allocation and development conditions. The research results are reliable after the robustness test. This study's configuration model enhances theoretical insights into regional digital transformation mechanisms, offering practical guidance for government policy and strategic business adjustments.