Digital transformation and coordinated regional economic development: a dynamic QCA analysis based on the digital ecosystem perspective

Abstract Digital transformation presents significant opportunities for coordinated regional economic development and sustainable economic growth. However, fragmented and competitive explanations of impact mechanisms persist. Focusing on income and consumption coordination, measured by the spatial balance of county-level outcomes within prefectures, this study draws on the digital ecosystem perspective and configurational theory to analyze the impact of digital transformation on coordinated development in Chinese prefecture-level regions. We employ dynamic QCA and NCA approaches on panel data from up to 265 regions between 2014 and 2020. The findings reveal that no single digital factor serves as a necessary condition for promoting coordinated development in prefecture-level regions. For income coordination, the identified paths are: (1) governance-driven transformation based on openness and streamlined administration, (2) endogenous “technology-governance” transformation, and (3) comprehensive transformation driven by prosperity and openness. For consumption coordination, the paths include: (1) “governance-industry” transformation based on effective government and openness, (2) “governance-infrastructure” transformation based on external openness, and (3) comprehensive transformation based on enabling government. The analysis further reveals both logics of completeness and substitutability in these digital configurations, emphasizing how different element combinations reshape regional resource distribution patterns. The study also identifies dynamic trends, spatial distribution characteristics, and contextual boundaries of digital configurations. These findings carry important theoretical and practical implications for promoting balanced regional development and socioeconomic equity. The study is especially relevant at the prefecture level, a crucial tier for implementing national regional policies.