Nonlinear Impact of Digital Service Innovation on Value Creation in Manufacturing Firms: Based on TOE Framework

This study employs data from Chinese A-share manufacturing firms listed between 2018 and 2024 to examine the nonlinear effects of digital service innovation on corporate value creation and its threshold mechanisms, using a two-way fixed-effects model and a panel threshold model. The results indicate that (1) digital service innovation exhibits a nonlinear relationship with value creation—its impact is initially suppressed at low innovation levels but rises markedly once a certain inflection point is exceeded; (2) ecosystem embedding presents a double-threshold effect: when embedding is high, it substantially strengthens the efficacy of digital service innovation; (3) organizational dynamic capability shows a single-threshold effect: moderate dynamic capability enhances value creation, whereas overly strong capability may inhibit innovation benefits; and (4) digital technology adoption does not display significant threshold characteristics. This research enriches the theory of digital service innovation and offers empirical evidence and practical insights for manufacturing firms in crafting differentiated innovation strategies.