The Digital Imperative: Dynamic Managerial Capabilities, Organizational Readiness, and Innovation in China’s High-Tech Frontier

Background and Aim: The Chengdu–Chongqing high-tech corridor is a key innovation engine in China. However, how internal managerial capabilities—particularly in digital contexts—translate into innovation performance (IP) remains underexplored. This study addresses this gap by examining how dynamic managerial capabilities (DMCs) affect IP both directly and indirectly through organizational readiness (OR), while considering the moderating role of environmental factors (EFs). Method: Drawing on the theory of dynamic capabilities and the resource-based view, this study develops a four-dimensional DMC construct that incorporates digital literacy. Survey data from 488 managers in high-tech firms in the Chengdu–Chongqing region were analyzed using partial least squares structural equation modeling (PLS-SEM). Results: The findings show that DMCs significantly enhance both OR and IP. Alternatively, partially mediates the DMC–IP relationship. Among the environmental moderators, only the effect of DMCs on OR was significantly influenced by contextual conditions. Conclusion: This study contributes to theory by extending the DMC framework to include digital literacy and validating OR as a mechanism for capability deployment. Practically, the findings suggest that firms in emerging economies should strengthen internal readiness systems to capitalize on managerial capabilities in dynamic and digital environments fully.