Digital Transformation: A Financial Game‐Changer for Manufacturing

ABSTRACT This study examines the organizational change process driven by adopting digital technologies in manufacturing. Using the Context‐Mechanism‐Outcome (CMO) framework and fuzzy set qualitative comparative analysis (fsQCA), we analyzed 46 cases from the Chinese manufacturing sector. Our focus was on the internal mechanisms and conditions influencing digital transformation (DT). The findings reveal three distinct DT configuration models: process transformation, large enterprise DT, and platform‐based transformation. Each model highlights unique organizational contexts, constraints, and digital leveraging strategies. These models demonstrate how different contextual factors shape DT approaches, providing insights into how organizations navigate technological transitions. By reframing DT as a dynamic and context‐sensitive process, the study illustrates how traditional manufacturing practices are disrupted and new models are developed. Our findings emphasize aligning DT strategies with organizational goals to enhance implementation success. This research offers actionable guidance for managers, helping them address DT challenges through context‐specific strategies.