Digital innovation cooperation and corporate resilience in China: a U-shaped relationship

Purpose Focusing on extreme shocks, this study investigates how emerging market firms survive and recover through cross-organizational digital synergy. It elucidates the nonlinear impact of digital innovation cooperation on corporate resilience and the phased evolutionary mechanisms of knowledge transfer during complex technological embeddedness. Design/methodology/approach Analyzing 2,391 firm-year observations from Chinese listed companies between 2019 and 2022, this study extracts digital innovation cooperation elements via standardized text analysis of public announcements. A composite corporate resilience index is constructed using a dynamic capability perspective encompassing learning, adaptation, and reconfiguration. Hierarchical regression and a three-step nonlinear moderation procedure empirically validate the U-shaped main effect and multidimensional boundary conditions. Findings Empirical evidence reveals a U-shaped relationship between digital innovation cooperation and corporate resilience. Initial adaptation costs stemming from technological heterogeneity and cognitive friction temporarily diminish risk capacity, whereas the subsequent internalization of cross-boundary knowledge during deeper cooperation drives a substantial recovery. Furthermore, top management’s digital background and corporate integrity culture, acting as cognitive and governance mechanisms, steepen this U-shaped curve, whereas intense product market competition flattens it. Originality/value This research expands knowledge transfer theory within complex technological contexts, challenging traditional assumptions of immediate open innovation empowerment. It reveals the underlying dissipate then compensate logic of cross-organizational digital synergy. The proposed multidimensional nonlinear moderation framework provides quantitative criteria for firms to formulate cross-cycle budgets, mitigate cooperation risks and customize defensive strategies.