The U-shaped relationship between digital transformation and dynamic capabilities of heavy-polluting enterprises

Purpose In the era of the digital economy, dynamic capabilities are crucial for heavy-polluting enterprises in emerging markets to achieve a win-win situation in both economic and environmental performance. This study aims to explore the impact mechanism of digital transformation on the dynamic capabilities of heavy-polluting enterprises. Design/methodology/approach Using Chinese A-share listed companies in the heavy-polluting industry as a research sample from 2013 to 2023, this study explores the impact mechanism of digital transformation on the dynamic capabilities. Findings The results show that digital transformation has a significant U-shaped relationship with the dynamic capabilities of heavy-polluting enterprises. Moderating effect analysis indicates that new media public opinion pressure and CEO openness have a positive moderating effect on the relationship between digital transformation and dynamic capabilities. Originality/value This study not only broadens the research perspectives of digital transformation and dynamic capabilities, but also provides guidelines for heavy-polluting enterprises to effectively use digital transformation to enhance dynamic capabilities.