Understanding the manufacturer’s technological innovation driven by digital business strategy

Purpose This study investigates how and when digital business strategy (DBS) enhances manufacturers’ competitiveness in technological innovation (TI). Specifically, it examines the mediating role of knowledge search (KS) from academia, market and supply chain, and the moderating effect of organizational resilience (OR) within China’s manufacturing sector. Design/methodology/approach Data were collected through a two-wave questionnaire from 337 middle and senior managers in Chinese manufacturing firms. The hypothesized relationships were tested using structural equation modeling (SEM) with a bootstrap method for mediation. Findings Results indicate that DBS significantly promotes manufacturers’ TI. KS from academia, market and supply chain partially mediate this relationship, underscoring the strategic importance of external knowledge integration facilitated by DBS. Furthermore, OR positively moderates the impact of DBS on KS and the mediating role of KS, demonstrating that resilient organizations are more adept at leveraging digital strategies to enhance knowledge acquisition. Practical implications Manufacturers should strategically deploy digital business strategies, leveraging data-driven systems for precise knowledge search and integration. Enhancing organizational resilience through dynamic capabilities and comprehensive risk management can effectively mitigate disruptions, promoting sustained technological innovation and strengthening competitive advantage. Originality/value This study enriches the knowledge-based view by emphasizing strategic knowledge resource orchestration and dynamic capabilities in digital transformation, offering valuable managerial implications for implementing DBS effectively to foster technological innovation.