Reconstructing Digital Transformation Capabilities: A TOE-Dynamic Capability Perspective with Digital Finance as a Boundary Enhancer

Reconstructing Digital Transformation Capabilities: A TOE-Dynamic Capability Perspective with Digital Finance as a Boundary Enhancer | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Reconstructing Digital Transformation Capabilities: A TOE-Dynamic Capability Perspective with Digital Finance as a Boundary Enhancer Libin Zhou, Lingling Li, Ayesha Zaheer Abbasi, Wasim Ahmad This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7391497/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract In the face of accelerating digital disruption, understanding how firms build robust digital transformation capabilities (DTC) has become a critical research and managerial concern. This study integrates the Dynamic Capability Theory and the Technology–Organization–Environment (TOE) framework to propose a dual-path model that distinguishes between external sensing and internal reconfiguration mechanisms. Drawing on survey data from 502 manufacturing firms in China, we empirically examine how sustainable strategy, network structure, digital innovation, and cultural flexibility influence DTC, and how DTC subsequently enhances enterprise performance. We further introduce digital finance as a boundary-enhancing tool that moderates key transformation pathways. The results reveal that while all four antecedents positively affect DTC, the strength and significance of their effects vary. Notably, digital finance demonstrates both amplifying and substitutive moderating effects, enhancing the performance impact of DTC but weakening the effect of digital innovation on outcomes. These findings enrich the structural understanding of capability formation and shed light on the contingent role of fintech infrastructure. Theoretical and practical implications for dynamic capability development in digital contexts are discussed. JEL Codes L21 – Business Objectives of the Firm O32 – Technological Innovation and R&D G23 – Non-bank Financial Institutions; Financial Instruments D83 – Search; Learning; Information and Knowledge M15 – IT Management Business and commerce/Business and management Social science/Business and management Business and commerce/Information systems and information technology Digital transformation capabilities Dynamic capabilities theory TOE framework Digital finance Organizational flexibility Innovation strategy Manufacturing firms Figures Figure 1 Figure 2 Figure 3 1. Introduction In the context of rapid digital economic development and the comprehensive advancement of China's "dual carbon" strategy, digital transformation has emerged as a strategic imperative for both national policy and corporate competitiveness(Chen, J. et al., 2024 ). The 14th Five-Year Plan for Digital Economy Development explicitly calls for the integration of digital technologies across industrial value chains, elevating digital capabilities to a central position in enterprise strategy. However, many firms still struggle with underdeveloped capabilities and fragmented resource integration, leading to significant disparities in transformation outcomes. As such, identifying how digital transformation capabilities are formed and how they influence firm performance has become a critical agenda for both theoretical advancement and practical guidance(Hortovanyi et al., 2023 ). Extant literature underscores that digital transformation capabilities are not innate but result from the interplay between external sensing and internal reconfiguration, reflecting the foundational logic of the dynamic capabilities theory—namely, the sequence of sensing, seizing, and transforming(Wagner & Kurpjuweit, 2024 ). To better illustrate how a firm adapts to a changing and complex environment, this study applies the Technology–Organization–Environment (TOE) framework as an additional perspective. Within the framework of the TOE model, sustainability orientation and network structural advantage are considered external sensors, while the internal reconfiguration route comprises digital innovation and cultural flexibility. These two paths capture the ways in which firms leverage external resources and internal capability absorption and transformation processes. This study places primary importance on digital finance, a swiftly developing external driver of change which integrates technological tools with financial services. Innovations in fintech infrastructure have heightened capital accessibility while lowering transaction costs to firms. Its role, however, is paradoxical. While it can increase readiness to transform, it can also boost overdependence, thereby undermining a firm’s internal capacity building. More critically, the institutional expansion of digital finance often outpaces the capability evolution of enterprises, leading to a structural mismatch between financial supply and absorptive capacity. This may explain mixed empirical findings on its moderating effects. To address these gaps, this study constructs a dual-path framework based on "external sensing–internal reconfiguration" to identify key enablers of digital transformation capabilities and investigate the boundary-enhancing role of digital finance along these paths. Theoretically, this research integrates the TOE framework into the dynamic capability view, enhancing the model's contextual adaptability and structural coherence. Empirically, it reveals a dual mechanism—activation and substitution—through which digital finance moderates capability formation, thereby refining our understanding of tool-based environmental variables. This study contributes to the literature on digital transformation in three novel ways. First, it disentangles the mechanisms through which external and internal elements shape digital transformation capabilities, deepening the structural understanding of dynamic capabilities. Second, it builds an integrated framework combining vertical (evolutionary) and horizontal (contextual) perspectives, thereby clarifying how capability boundaries adapt to specific environmental configurations. Third, it reconceptualizes digital finance as a functional environmental tool, highlighting its marginal moderation effects and potential for mismatch when capability development lags behind technology adoption. Collectively, these contributions extend the theoretical frontiers of digital transformation research under dynamic and digitized contexts. The remainder of this paper is organized as follows: Section 2 reviews the relevant literature and theoretical foundations and presents the research hypotheses. Section 3 outlines the research design, including measurement development, survey design, and data collection. Section 4 presents the empirical results along with the corresponding path analysis. Section 5 covers the theoretical and practical implications of the study and proposes avenues for further investigation. 2. Literature Review 2.1 Digital Business Capabilities to Obtain Competitive Advantages In the context of the scholarship derived from the ongoing phenomenon that is what the contemporary digital economy entails, how firms are formulating and using digital technologies to develop and augment their performance has become a prominent focus among scholars of management. The Dynamic Capabilities Theory (DCT) allows one to answer this question by suggesting that an enterprise must at least possess the ability to sense opportunities and threats from the environment, deploy organisational resources, and continually adapt the resource capability configurations to reap enduring competitive advantage (Teece, 2007 ). This explanation provides a comprehensive account of organisational responses to technological change and complexity and is useful in studying the factors that influence capability development throughout the process of digital transformation(Oliveira et al., 2024 ). Simultaneously, the Technology–Organisation–Environment (TOE) framework provides a more coherent account for studying the adoption of technology in organisations (Tornatzky et al., 1990 ). It states that innovation behaviour is determined by three interrelated dimensions which are: technological conditions, including the development stage and availability of the technologies; organisational infrastructure which comprises culture, workplace morale, and managerial adaptability; and the external environment, which includes the characteristics of the industry and its regulatory environment(Xue et al., 2025 ). In the context of this study, the application of the TOE framework adds value by illustrating the interaction of multidimensional factors in the development of digital transformation capabilities. This research connects DCT and TOE to define digital transformation capability as the operational embodiment of the sensing––integration––reconfiguration loop spanning multiple domains. This research also delineates differing influence pathways resulting from a technological input (digital innovation)(Li & Zhou, 2023 ), organisational structure (cultural flexibility)(Butt et al., 2024 ), strategic focus (sustainability)(Valero-Gil et al., 2024 ), network embeddedness(Luo et al., 2025 ), and ecosystem attributes (digital finance)(Yáñez-Valdés & Guerrero, 2023 ). More specifically, the external sensing pathway captures firm responses to macro-level drivers like green transition and industrial upgrading while the internal reconfiguration pathway concentrates on changing technology, processes, and culture within the firm’s boundary. This dual-path lens not only deepens understanding of capability formation mechanisms but also provides a foundation for analyzing their performance implications and the boundary conditions under which digital finance moderates these effects. Furthermore, this study treats digital finance as a functional environmental tool rather than a formal institutional arrangement. Its role as an enabler of digital transformation is twofold: it may exert incentive effects by enhancing financial flexibility or substitution effects by discouraging internal capability development. Given the frequent disconnect between the rapid expansion of financial technologies and the slower pace of organizational adaptation, structural mismatches often emerge. This perspective helps to capture the marginal utility—and potential limitations—of tool-based environmental variables in capability evolution, thereby enhancing the model’s contextual relevance. In sum, as firms navigate the challenges of the digital era, they must not only embrace technological advances but also cultivate dynamic resource integration and reconfiguration capacities. This study integrates DCT and TOE to construct a framework based on two logics—external sensing and internal reconfiguration—for analyzing the mechanisms by which digital capabilities are shaped, laying the groundwork for the hypotheses that follow. The theoretical model is presented in Fig. 1 . 2.2 External Sensing Path: Strategic and Network-Based Responses According to the DCT, the first requirement for firms operating in turbulent environments is sensing—the ability to perceive external changes, identify emerging opportunities, and proactively craft strategic responses (Teece, 2007 ). From this perspective, a sustainability-oriented strategy serves not only as a top management response to green transition and social responsibility trends but also as a manifestation of long-term value orientation and strategic foresight (Dangelico & Vocalelli, 2017 ). In the context of the TOE framework, the described strategy works as a responsive approach to situational ambiguity, augmenting the firm’s responsiveness to policy, technology, and market shifts (Mi et al., 2023 ). Thus, H1: A firm’s sustainability-oriented strategy positively influences its digital transformation capability. Moreover, a firm’s structure of the network, as well as its embeddedness in the resource system and information system externally, constitute vital components of its sensing capability. Social capital theory suggests (Nahapiet & Ghoshal, 1998 )that firms with greater embeddedness within industrial networks have relatively stronger capacities for sensing pertaining to active technologically advanced innovations, institutional changes, and other market activities. Within the context of the TOE framework, network structure is regarded as part of the environmental context, illustrating its importance for the flow of information, connectivity of the platforms, and learning beyond the organisation (Xue et al., 2025 ). In the context of digital transformation, firms with less advantageous positions in networks lag behind in perceiving and adopting digital change and thus impede the acceleration of transformation. Therefore, H2: A firm’s network structural advantage positively influences its digital transformation capability. 2.3 Internal Reconfiguration Path: Organisational Technology and Culture Adaptability Shifts The second stage of dynamic capabilities—seizing and reconfiguring—captures how firms integrate external opportunities into organisational resources and capabilities. As a component of dynamic capabilities, digital innovation capability indicates the extent to which a firm can adopt and utilise emergent technologies like big data, artificial intelligence, and the Internet of Things. This attribute is essential in the formation of the digital transformation capacity (Yoo et al., 2010 ). Within the TOE framework, this corresponds with the technological context, which centres on the firm’s willingness to identify and leverage pertinent transformative technologies. Prior studies stress that digital innovation capability serves as a conduit between resource integration and process reengineering, influencing the scope and sophistication of a firm’s transformational activities (Bansal et al., 2023 ). Thus, H3: A firm’s digital innovation capability positively influences its digital transformation capability. At the same time, a firm’s cultural openness influences its ability to learn, collaborate, manage uncertainty, and build digital capabilities. This aspect promotes productivity at different levels, aids in process and system adoption, and reinforces internal process reengineering (Anglani et al., 2023 ). Within the TOE framework, the organisational context includes culture as a fundamental driver of whether an organisation can successfully capture new technologies and transform them into measurable operational outputs. Empirical evidence suggests that firms exhibiting high cultural flexibility display enhanced adaptability when faced with multifaceted digital technologies and structural change (Angelopoulos et al., 2023 ). Thus: H4: A firm’s cultural flexibility positively influences its digital transformation capability. 2.4 Value Realization of Digital Transformation Capability The focus of dynamic capabilities goes beyond simple resource allocation to address the outcomes of superior performance achievement. As an integrative mediating construct, digital transformation capability connects technological adoption with organisational performance; hence, mediating as the determinant of an integrative transformation within a firm. Prior research has shown that more digitally enabled firms have better operational efficiency, quicker customer responsiveness, and greater market expansion compared to their less digitised peers (Sarwar et al., 2024 ). In the same manner, Sarwar et al. ( 2024 ) explain that digital capabilities enhance execution and coordination efficiency which strengthens the strategic performance of the firm overall. Hence, H5: A firm’s digital transformation capability positively influences its performance. 2.5 The Instrumental Moderating Role of Digital Finance Within the environmental dimension of the TOE framework, the focus extends beyond institutional and technological infrastructure to include access to financial resources and the systems that support them. This study conceptualizes digital finance as a typical instrumental environmental variable, characterized by efficiency, broad accessibility, and data-driven functionalities. Through digital finance, firms have become more responsive in relation to garnering funds, payments, risk assessment, and other related services (Khalid, F. et al., 2024 ). From an RBV view, the availability and liquidity of financial capital as bank loans stand as vital contextual factors affecting a firm's dormant, latent, or existing capabilities (Baran et al., 2025 ). Nevertheless, the ramifications of digital finance on the development of organisational capabilities are mixed. As an example, digital finance works through a motivational mechanism by freeing marginal internal capability release, as a result improving credit access and lowering transaction costs. Conversely, in companies with no basic integration or readiness to transform, over-reliance on exogenous financial mechanisms may diminish momentum of internal capability development in a resource substitution impact (Du et al., 2024 ). This particularly concerning risk occurs when the evolution of a company’s capacity lags adaptation of its digital financial infrastructure, causing a structural imbalance between the available tools and capabilities which risks undermining the efficacy of digital finance on strengthening performance. Equipped with this framework, this study aims to investigate the impact of digital finance as an enabler within the capability formation process and formulates the following hypotheses: H6: Digital finance impacts firm performance positively. H7a: Digital finance positively moderates the impact of sustainability strategy on digital transformation capability. H7b: Digital finance positively moderates the effect of network structure advantage on digital transformation capability. H7c: Digital finance positively moderates the effect of digital innovation capability on digital transformation capability. H7d: Digital finance positively moderates the effect of cultural flexibility on digital transformation capability. H7e: Digital finance positively moderates the effect of digital transformation capability on firm performance. 3. Research methodology 3.1 Data source This study conducted a field survey targeting manufacturing firms in Henan Province, China. Data were collected through an online questionnaire distributed via the SoJump platform. To ensure data quality, a screening question at the beginning of the survey verified that respondents were internal employees with a basic understanding of their firm's digital transformation processes(Castura et al., 2023 ). Among the 648 collected responses, 502 valid questionnaires were retained after removing entries with excessively short completion times or inconsistent answers, resulting in a valid response rate of 77.4%. The demographic and organizational characteristics of the sample are summarized in Table 1 . In terms of gender distribution, female respondents accounted for 70.92%, while male respondents made up 29.08%. Regarding age, 49.4% of participants were aged 35 or younger, suggesting a relatively young respondent pool, likely more familiar with digital tools. As for firm age, 62.35% of the surveyed firms had been established for less than five years, indicating a high proportion of startups and SMEs in the region’s manufacturing sector. Additionally, 80.08% of respondents were employed in firms with fewer than 1,000 employees, further confirming the sample’s focus on small and medium-sized enterprises. Beyond basic demographics and organizational features, the questionnaire also measured respondents’ subjective perceptions of their firms' use of digital finance, digital transformation progress, and organizational performance using a five-point Likert scale. The average score for digital finance adoption was 2.883, slightly below the neutral midpoint of 3, suggesting that most firms remain at a low-to-moderate stage of digital finance integration. The average score for digital transformation progress was 3.056, reflecting a moderately positive outlook. Meanwhile, firm performance received an average rating of 3.450, indicating generally favourable evaluations of current business outcomes. Overall, the dataset provides a solid empirical foundation to examine how internal and external capabilities jointly shape digital transformation and firm performance. It also reflects the structural reality of China’s manufacturing landscape—dominated by SMEs and marked by uneven digital progress. Table 1 Characteristics of the sample Question Options Frequency Gender Male 146 Female 356 Age ≤ 25 146 26 ~ 35 102 36 ~ 45 89 46 ~ 55 83 ≥ 55 82 Years in business ≤ 2 177 3 ~ 5 136 6 ~ 10 96 ≥ 10 93 Employee Size ≤ 200 162 200 ~ 500 130 500 ~ 1000 110 ≥ 1000 100 3.2 Measurement items To guarantee reliability and context appropriateness, adaptations of local and global scales were used for all variables of this study. A 5-level Likert scale with the endpoints, “strongly disagree” and “strongly agree” was used to evaluate all items. The construct of sustainability strategy was captured through three items measuring strategic orientation with regard to market position, supply chain operations, and technology development as put forth by Wijethilake ( 2017 ) and Eide et al.(2020). The construct of digital innovation was evaluated through four items which were changed academically authored by Paladino ( 2007 ) and Zhao et al. ( 2023 ) concerning the innovation level of digital products and services as well as processes. The works of Galindo-Martín et al. ( 2019 ) and Leo et al. ( 2023 ) provided seven items which were used to measure the digital transformation capability of an enterprise. These items reflect an enterprise's capacity to adopt, integrate, and implement digital technologies across various functions. Aisaiti et al. ( 2019 ) provided five questions which assessed the use of digital finance from both a historical perspective and prospective outlook, encapsulating user engagement and intention toward digital financial instruments. Finally, the high-quality development of enterprises was measured through innovation performance, resource efficiency, growth potential, and value creation using six items from Achi et al. ( 2022 ) and Su et al. ( 2023 ) All constructs were purposefully tailored to the scope of this study while preserving their essential relationships. To measure network structure, this study adopts a second-order construct approach using a reflective–formative model, in which two first-order dimensions—network connectivity and network support—serve as formative components. Each dimension was measured using three items adapted from Khalid et al. ( 2020 ) and Wu ( 2022 ), capturing the scope of inter-organizational interactions and the degree of resource and knowledge support received from network partners. This multidimensional perspective allows for a more nuanced representation of a firm's embeddedness and relational capital within external networks. 4. Analysis results 4.1 Model estimation To ensure the robustness of model estimation, we first conducted a Kaiser-Meyer-Olkin (KMO) test, which yielded a value of 0.9654—well above the recommended threshold of 0.9—indicating strong sampling adequacy for factor analysis (Deku et al., 2024 ). Given the questionnaire-based data collection, the potential for common method bias was examined using Harman’s single-factor test. Results showed that the first principal component accounted for 48.46% of the total variance, which is below the 50% threshold, suggesting that common method bias is not a serious concern(Saxena et al., 2024 ). A confirmatory factor analysis (CFA) was employed in our study to ascertain whether each concept was sufficiently distinctive from the others (Elibal & Özceylan, 2024 ). This analysis confirms whether the survey questions pertaining to each of the topics—inquiries about digital finance, digital transformation capability, enterprise performance, cultural flexibility, sustainability strategy, digital innovation, and network structure—are measuring distinct constructs. This step was necessary to ensure that these critical variables were captured without intersection or ambiguity, which is essential for the model's dependability and transparency. The CFA verified a seven-factor model as having a substantially better fit than competing models with SRMR = 0.027 (< 0.08), CFI = 0.967, TLI = 0.963, and χ²/df = 1.975, all of which passed benchmark criteria, thus confirming strong discriminant validity and structural reliability. (Setti et al., 2022). 4.2 Reliability and validity analysis We further assessed the reliability and convergent validity of the measurement model using Cronbach’s alpha and average variance extracted (AVE). All latent constructs reported Cronbach’s alpha values exceeding 0.82 and AVE values above 0.72, surpassing the commonly accepted threshold of 0.70 (Cheung et al., 2024), thereby demonstrating strong internal consistency and convergent validity. Among them, digital transformation capability (α = 0.958, AVE = 0.800) and enterprise performance (α = 0.955, AVE = 0.816) exhibited the highest reliability. Cultural flexibility (α = 0.885), digital finance (α = 0.904), and digital innovation (α = 0.892) also showed excellent internal consistency, each with AVE values above 0.72. Likewise, network structure (α = 0.923, AVE = 0.722) and sustainability strategy (α = 0.826, AVE = 0.742) demonstrated reliable measurement properties, as shown in Table 2 . Table 2 Reliability and Validity Statistics of Construct Measures Var. Items Loadings CA rho_a rho_c AVE SD Sustainability Strategy 0.826 0.829 0.896 0.742 sd1 Top management supports and executes a sustainable supply chain strategy. 0.873 sd2 The industry has strong IT capacity to meet current sustainability trends. 0.844 sd3 The industry is more than capable in regard to information technology to cope with the recent trends in sustainability. 0.866 NW Network Diagram 0.923 0.924 0.940 0.722 nw network support 0.923 0.923 0.940 0.722 nw1 Our company maintains both formal and informal relationships with a wide range of suppliers in the same industry. 0.862 nw2 Our company frequently engages in formal and informal exchanges with customers within the same industry. 0.873 nw3 Our company actively interacts with other businesses through both formal partnerships and informal networks. 0.841 nc network connection 0.911 0.911 0.944 0.849 nw4 Most project team members are well-informed about our company's operations and strategic goals. 0.842 nw5 Project team members can easily communicate with our company to share technical knowledge and practical experience. 0.847 nw6 Other project collaborators expect our company to provide valuable managerial guidance and technical support when needed. 0.832 CF Cultural Flexibility 0.885 0.886 0.929 0.813 cf1 The company holds a cultural atmosphere that promotes innovation. 0.903 cf2 The company promotes collaboration and social relations among different functional staff with different roles. 0.900 cf3 The company's employees have the active learning and positive wishing behavioural skills. 0.903 DI Digital Innovation 0.892 0.894 0.925 0.755 di1 The company uses digital technology to enhance product/service R&D. 0.879 di2 The company improves delivery efficiency through digital tools. 0.856 di3 Digital technology supports product/service R&D innovation. 0.879 di4 The company uses digital tools to strengthen change management. 0.860 DT Digital Transformation Capabilities 0.958 0.958 0.965 0.800 dt1 All digitizable operations in my industry are automated. 0.890 dt2 Digital systems collect cross-disciplinary data in my industry. 0.901 dt3 Digital tech links supply chain activities via an integrated system. 0.904 dt4 Digital processes improve consumer interaction in my industry. 0.900 dt5 Manufacturers and suppliers share data digitally. 0.883 dt6 Industry decisions rely on AI and predictive analytics. 0.889 dt7 Supply chain processes are widely automated. 0.891 EP Enterprise Performance 0.955 0.955 0.964 0.816 ep1 The company outperforms competitors in annual sales volume. 0.908 ep2 The company outperforms competitors in sales growth. 0.899 ep3 The company outperforms competitors in the growth of market share. 0.895 ep4 The company's customers, when compared to competitors, regard the company's core products and services highly. 0.907 ep5 When compared to industry competitors, the company's headcount is expanding at an unprecedented rate. 0.911 ep6 When compared to industry competitors, the company is viewed positively with regards to overall reputation. 0.901 DF Digital Finance 0.904 0.905 0.929 0.724 df1 Our company avails of digital financial services in support of its operations or projects aimed at innovations. 0.833 df2 For our company, digital finance will continue to be a part of its long-term financing or investment policy. 0.854 df3 Our company has business needs and utilises digital financial tools like online lending and payment systems. 0.855 df4 Our company is satisfied with the outcomes realised through digital finance such as faster access to capital and lower costs of financing. 0.849 df5 Our company recommends digital financial services to industry counterparts. 0.863 As shown in Table 3 , all HTMT values fall below the conservative threshold of 0.85 (Purwanto & Sudargini, 2021 ), with the highest observed value being 0.553 between cultural flexibility and digital finance. These results additionally corroborate that the latent variables satisfy the Fornell-Larcker Criterion. The findings above further confirm that the latent variables possess satisfactory discriminant validity. Although digital transformation capability shares relatively strong correlations with enterprise performance, network structure, and digital finance, none of the correlations exceed the critical thresholds, suggesting sufficient theoretical independence and empirical distinctiveness. Overall, the measurement model demonstrates robust discriminant validity, supporting the validity of subsequent structural path analysis. Table 3 Fornell Lacker Criterion and HTMT Results Variables SD NW CF DI DT EP DF SD 0.861 0.283 0.491 0.475 0.465 0.486 0.596 NW 0.249 0.850 0.352 0.393 0.672 0.692 0.724 CF 0.420 0.320 0.902 0.285 0.422 0.402 0.553 DI 0.410 0.357 0.256 0.869 0.557 0.580 0.584 DT 0.415 0.633 0.388 0.516 0.894 0.804 0.740 EP 0.433 0.650 0.370 0.537 0.770 0.904 0.799 DF 0.517 0.662 0.495 0.526 0.689 0.744 0.851 Note: The upper right corner is the HTMT result, the diagonal is the square root of AVE and the lower left corner is the Fornell acker Criterion result This study conceptualizes “network structure” (NW) as a formative second-order construct composed of two reflective first-order dimensions: network connection (NC) and network support (NS), in order to comprehensively capture the structural characteristics of firms’ external information flows and resource embeddedness. Using PLS-SEM, the path estimation and multicollinearity diagnostics were conducted. Table 4 shows that both NC and NS make statistically significant contributions to the higher-order NW construct, with standardized loadings of 0.614 (t = 8.584, p < 0.001) and 0.474 (t = 6.393, p < 0.001), respectively. These results exceed the commonly accepted significance thresholds, confirming the formative validity of the construct. In terms of multicollinearity, the variance inflation factor (VIF) values for NC and NS were both 1.887, well below the critical threshold of 5, indicating no significant multicollinearity concerns in the formative model (Hair, J. F. et al., 2021). These findings validate the conceptualization of NW as a formative second-order construct, exhibiting strong explanatory and measurement adequacy in reflecting firms’ network structures. Table 4 Second Order Verification Variables VIF Weight STD T statistics P values NC 1.887 0.614 0.072 8.584 0.000 NS 1.887 0.474 0.074 6.393 0.000 To further ensure the robustness of the structural model, we assessed multicollinearity across latent variables using VIF. A VIF value below 5 generally suggests the absence of severe multicollinearity (Hair, J. et al., 2017 ; Kock et al., 2012 ). Table 5 reports the VIF statistics for all endogenous constructs. When digital transformation capability (DT) is the dependent variable, the VIF values for its predictors—cultural flexibility (CF), digital innovation (DI), network structure (NW), and sustainability strategy (SD)—range from 1.228 to 1.380, all well below the critical level. When enterprise performance (EP) serves as the dependent variable, the VIF values for DT, digital finance (DF), DI, NW, CF, and SD are 2.464, 3.016, 1.554, 2.111, 1.442, and 1.565, respectively—all again below 5. These results indicate no significant multicollinearity risk in the structural model. Therefore, the estimated paths are statistically independent and reliable, providing a solid foundation for the structural equation modelling. Table 5 VIF Results of Inner Models Variables CF DF DI DT NW SD DT 1.297 1.309 1.228 1.38 EP 1.442 3.016 1.554 2.464 2.111 1.565 4.3 Hypothesis testing and analysis Following the guidelines of Aburumman et al. ( 2023 ), the explanatory power of each latent variable was assessed using the F-square (ƒ²) statistic. The results indicate that digital transformation capability exhibits a strong explanatory effect on enterprise performance (ƒ² = 0.480), as does digital finance (ƒ² = 0.2749), while network structure demonstrates a considerable impact on digital transformation capability (ƒ² = 0.383). The model's explanatory power is moderate in two aspects: the impact of innovation on digital finance ( ƒ² = 0.112) ) and the moderating effect of digital finance on the relationship between transformation capability and performance ( ƒ² = 0.114). On the other hand, the effect of cultural flexibility and sustainability strategy on digital transformation capability is weaker relative to other areas of the model, with both effect sizes below 0.1 (ƒ² < 0.1). As outlined in Table 6 , the model captures the most relevant variance in digital transformation capability resulting in an R² of 0.535 and demonstrating strong predictive relevance with a Q² of 0.525. The error metrics, RMSE = 0.691 and MAE = 0.556, fall within acceptable ranges, indicating sound predictive relevance. For the enterprise performance model, the R² reaches 0.731 and Q² is 0.613, with RMSE and MAE values of 0.624 and 0.496, respectively. These findings confirm the high explanatory and predictive power of the structural model, further validating the robustness of the estimated path relationships. Table 6 Structural Model Predictive Performance Summary Variables R-square R-square adjusted Q²predict RMSE MAE DT 0.535 0.531 0.525 0.691 0.556 EP 0.731 0.725 0.613 0.624 0.496 The analysis of the main structural paths reveals that most hypothesized relationships are statistically significant. The factors sustainability strategy (SD), network structure (NW), cultural flexibility (CF), and digital innovation (DI) all enhance transformation capability—shifting towards a more digitally advanced firm— (DT). Out of all the factors, network structure exhibits the greatest impact (β = 0.469, p < 0.001) which underscores the significance of external relational ties in enabling transformation. In a different perspective, digital innovation also having a noteworthy impact (β = 0.264, p < 0.001) suggests that the ability of a firm to integrate and apply new technologies is crucial towardswards driving digital transformation. As shown in Fig. 2 and Table 7 , the impact of digital transformation capability on enterprise performance is strong and significant (β = 0.453, p < 0.001). This reinforces the argument that digital capabilities act as critical performance-enabled dynamic capabilities. Moreover, network structure (β = 0.127, p < 0.001) and digital innovation (β = 0.099, p < 0.001) also have noteworthy direct impacts, confirming their positions as key movers of enterprise performance enhancement. However, the paths from SD to EP and from CF to EP are not statistically significant, implying that strategic and cultural mechanisms may influence performance indirectly through their effects on transformation capability. Furthermore, digital finance (DF), included as a control variable, exhibits a strong direct effect on performance (β = 0.305, p < 0.001), highlighting its independent contribution as a tool-based external resource to improving enterprise outcomes. Table 7 Direct Effect Results Hy. Path Original sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV|) P values Support H1a SD ->DT 0.143 0.144 0.036 3.950 0.000 Yes H1b SD ->EP 0.022 0.023 0.027 0.822 0.411 No H2a NW ->DT 0.469 0.470 0.034 13.762 0.000 Yes H2b NW ->EP 0.127 0.127 0.034 3.725 0.000 Yes H3a CF ->DT 0.108 0.108 0.036 3.003 0.003 Yes H3b CF ->EP -0.051 -0.051 0.026 1.951 0.051 No H4a DI ->DT 0.264 0.263 0.034 7.729 0.000 Yes H4b DI ->EP 0.099 0.100 0.028 3.593 0.000 Yes H5 DT ->EP 0.453 0.453 0.036 12.423 0.000 Yes H6 DF ->EP 0.305 0.304 0.041 7.470 0.000 Yes H7a DF x SD ->EP 0.027 0.026 0.027 0.969 0.332 No H7b DF x NW ->EP -0.023 -0.022 0.037 0.606 0.544 No H7c DF x CF ->EP 0.013 0.013 0.026 0.503 0.615 No H7d DF x DI ->EP -0.064 -0.065 0.029 2.220 0.026 Yes H7e DF x DT ->EP 0.226 0.226 0.044 5.080 0.000 Yes A further examination of the moderating role of digital finance (DF) across different paths reveals that only two of the five hypothesized interaction effects—H7d and H7e—are statistically supported. The other three interactions (DF × SD, DF × NW, DF × CF) do not reach significance, suggesting that the moderating influence of digital finance is not uniformly applicable across all strategic or organizational factors but instead exhibits path specificity. For H7d, the interaction term shows a negative regression coefficient (β = − 0.064, p < 0.05), indicating that digital finance weakens the positive relationship between digital innovation (DI) and enterprise performance (EP). While the slopes under all three levels of digital finance remain positive in the interaction plots, the incremental effect of DI on EP becomes less pronounced at higher levels of DF. This suggests that the marginal performance benefits of innovation are constrained when firms rely heavily on digital financial tools. In contrast, the interaction effect for H7e is strongly empirically confirmed with both a positive value and a significant t-statistic (β = 0.226, t = 5.080, p < 0.001). This finding suggests that digital finance greatly improves the already-existing positive relation between digital transformation capability (DT) and enterprise performance. The slope analysis further reveals that under high levels of DF, the marginal effect of DT on EP is substantially amplified, whereas it diminishes under low DF conditions. These findings highlight the contingent role of digital finance as a tool-based environmental enabler that intensifies the performance returns of firms' internal transformation capabilities. shown in Fig. 3 . 5. Discussion, implications and Limitation 5.1 Discussion This study empirically confirms that sustainable development strategy, network structural advantage, cultural flexibility, and digital innovation capability exert significant positive effects on digital transformation capability, thereby supporting the “sensing–seizing–transforming” framework central to dynamic capabilities theory (Teece, 2007 ). In particular, the dominant role of network structure (NW → DT, β = 0.469, p < 0.001) echoes Nahapiet and Ghoshal’s ( 1998 ) argument that structural social capital facilitates knowledge access and capability renewal. Additionally, the significant contribution of digital innovation capability (β = 0.264, p < 0.001) aligns with Del Giudice et al. ( 2021 ), who emphasize the role of “innovative recombination” in advancing digital transformation processes. These findings suggest that external opportunities for resource orchestration—such as strategic sensitivity and network embeddedness—combined with internal innovation adaptability mechanisms, jointly shape the dual engine driving capability reconfiguration. This reinforces the applicability of dynamic capabilities theory within the digital transformation context. Further analysis reveals that digital transformation capability positively affects enterprise performance (DT → EP, β = 0.453, p < 0.001), consistent with prior studies that position digital capabilities as process-based mediators linking technological adoption to performance outcomes (Chen, W., 2023 ; Mikalef & Krogstie, 2020 ). This result supports the notion that digital transformation entails not only technological upgrades but also fundamental restructuring of firm-level resource allocation and organizational architecture. The triadic logic of the TOE framework—Technology, Organization, and Environment—is also validated in this study. Cultural flexibility (O dimension) and digital innovation (T dimension) capture firms’ organizational adaptability and technological responsiveness, while variables such as network structure, sustainable strategy, and digital finance (E dimension) represent environmental enablers supporting resource access and cognitive framing. These results strengthen the structural robustness of the TOE model in analyzing digital transformation phenomena (Tornatzky et al., 1990 ). Importantly, the moderation analysis reveals a degree of theoretical tension. While the study hypothesized that digital finance would moderate key relationships with performance, most interaction terms were statistically insignificant. Only the interaction between digital finance and digital innovation showed a significant negative effect, whereas digital finance positively moderated the relationship between digital transformation and performance. These findings suggest that digital finance, when deployed in contexts where firms lack fully developed transformation capabilities, may inadvertently generate resource misallocation or reinforce path dependency—consistent with Ding et al. ( 2024 ) on the risks of “technological overshoot and organizational lag.” Conversely, for firms with mature transformation capabilities, digital finance serves as a performance catalyst. This heterogeneity of moderation effects calls for a re-conceptualization of digital finance as a context-contingent instrumental variable rather than a universal enabler. The findings also offer a nuanced extension to the environmental dimension of the TOE framework by highlighting its conditional and dynamic nature. 5.2 Theoretical Contributions This study offers three distinctive theoretical contributions. First, by distinguishing between the external perception path and the internal reconstruction path in the formation of enterprise digital transformation capability, it reconceptualizes the dynamic capability structure. Unlike previous research that typically treats dynamic capability as a homogeneous construct (Teece, 2007 ; Wang & Ahmed, 2007 ), this study reveals a layered mechanism in which external factors such as network structure and digital finance act as opportunity enablers, while internal drivers such as digital innovation and cultural flexibility activate transformation potential. This layered perspective enriches the internal composition of dynamic capabilities. Second, the study integrates the dynamic capability theory’s “sensing–seizing–transforming” logic with the TOE (Technology–Organization–Environment) framework, forming a hybrid theoretical model that balances structural hierarchy with contextual sensitivity. Rather than treating TOE merely as a control framework (Zhu et al., 2006 ), this research embeds it into the capability-building process, thereby enhancing the model’s explanatory power in complex digital environments. Third, the study redefines digital finance as a tool-like external variable rather than a static environmental factor. By exploring its conditional moderating role in different capability paths, it identifies a dual mechanism of “facilitation versus substitution.” This explains why the effect of digital finance on enterprise performance may vary based on firms’ internal transformation maturity. It offers new insights into the boundary conditions of moderation effects, thus addressing an under-explored paradox in digital finance research. 5.3 Managerial Implications Several practical insights emerge from this study. First, managers should adopt a path-matching strategy when developing digital transformation capability. In early stages, firms may prioritize leveraging digital finance and external networks to sense market opportunities; in later stages, emphasis should shift toward enhancing internal capabilities, such as cultural adaptability and innovation orientation, to enable sustained transformation. Second, the findings caution against an overreliance on digital finance as a substitute for internal resilience. Although digital finance facilitates access to capital and reduces transaction costs, it cannot replace the long-term value of organizational learning and adaptive culture. Managers are advised to treat digital finance as a complementary enabler rather than a standalone solution. Third, the results underscore the importance of second-order capabilities—such as cross-functional integration and data-driven coordination—for effective digital transformation. Enterprises should move beyond siloed innovation initiatives and establish systemic digital governance mechanisms that align technological investments with strategic objectives. 5.4 Policy Recommendations Based on the findings, this study proposes three policy directions. First, governments and financial institutions should consider designing mismatch-responsive digital finance policies. Specifically, they can tie financing qualifications to firms’ internal digital capability maturity, ensuring that digital finance does not amplify transformation gaps between high- and low-capability firms. Second, policy emphasis should shift from coverage-first to fit-first. Instead of maximizing the spread of digital finance tools, regulators should focus on their contextual appropriateness. Establishing industry-specific digital maturity assessment frameworks can guide differentiated financial service provision, improving both efficiency and equity. Third, a stage-based support system should be built for manufacturing firms undergoing digital transformation. This system should include sensing-stage subsidies (for awareness building), integrating-stage incentives (for digital tool adoption), and transformation-stage rewards (for performance outcomes). Such dynamic policy scaffolding can more effectively catalyze digital transformation in traditional industries. 5.5 Limitation of research Despite its theoretical and empirical contributions, this study has several limitations. First, the empirical data were collected from manufacturing firms in Henan Province, which may limit the generalizability of the findings. Future research could expand the scope to multiple regions and industries to enable cross-context comparisons. Second, the measurement of digital finance was treated as a unified construct, without differentiating specific tools such as digital payments, supply chain finance, or online credit systems. Disaggregating these components in future studies would enhance explanatory precision. Third, while the model integrates external environmental factors and organizational capabilities, it does not account for micro-level behavioral variables such as managerial cognition or digital mental models. Incorporating such psychological mechanisms may help extend the explanatory chain from strategic conditions to capability formation and performance outcomes. Declarations Ethical Approval and Consent to Participate Not applicable. Ethical approval was not required for this study as it involved organizational-level data collection and did not include any human participants or personal identifying information. All participating firms were informed about the purpose of the study, and organizational consent was obtained prior to data collection. Consent for Publication The authors have full consent for the publication of the article with HUMANITIES & SOCIAL SCIENCES COMMUNICATIONS. Competing Interests The authors declare that they have no competing interests. Funding This work was supported by Key Scientific Research Projects of Higher Education Institutions in Henan, China (Grant No. 24A790030). Author Contribution L.Z. and L.L. contributed to the conceptualization of the study. L.Z. was responsible for the methodology, software, and formal analysis. L.L. validated the study and performed the investigation. W.A. provided resources and contributed to data curation. L.Z. and L.L. wrote the original draft, while L.Z. and W.A. reviewed and edited the manuscript. L.Z. and L.L. were responsible for the visualization, and W.A. supervised the project. L.Z. managed the project administration and funding acquisition. Acknowledgement This study is a part of the first author's Ph.D. work at the UCSI University, Kuala Lumpur, Malaysia. 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1","display":"","copyAsset":false,"role":"figure","size":40890,"visible":true,"origin":"","legend":"\u003cp\u003eResearch Framework Proposed by Authors\u003c/p\u003e","description":"","filename":"1.png","url":"https://assets-eu.researchsquare.com/files/rs-7391497/v1/13ca7d1fd5b4776daa8e3bd4.png"},{"id":94591546,"identity":"7724c325-5dbd-44ee-84a0-7d14b238d3ff","added_by":"auto","created_at":"2025-10-28 18:22:26","extension":"png","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":180596,"visible":true,"origin":"","legend":"\u003cp\u003eModel framework diagram\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eNote: \u003c/strong\u003e\u003cem\u003e\u003cstrong\u003ep\u003c/strong\u003e\u003c/em\u003e\u003cstrong\u003e \u003c/strong\u003e\u0026lt; 0.05 \u003cstrong\u003e(*\u003c/strong\u003e\u003cem\u003e\u003cstrong\u003e), p \u003c/strong\u003e\u003c/em\u003e\u003cem\u003e\u0026lt; 0.01\u003c/em\u003e\u003cem\u003e\u003cstrong\u003e (**\u003c/strong\u003e\u003c/em\u003e\u003cem\u003e\u003cstrong\u003e), \u003c/strong\u003e\u003c/em\u003e\u003cem\u003e\u003cstrong\u003ep\u003c/strong\u003e\u003c/em\u003e\u003cem\u003e\u003cstrong\u003e \u003c/strong\u003e\u003c/em\u003e\u003cstrong\u003e\u0026lt; 0.001\u003c/strong\u003e\u003cem\u003e\u003cstrong\u003e (***\u003c/strong\u003e\u003c/em\u003e\u003cstrong\u003e)\u003c/strong\u003e\u003c/p\u003e","description":"","filename":"2.png","url":"https://assets-eu.researchsquare.com/files/rs-7391497/v1/f32f2995662fff30064a5bb1.png"},{"id":94591273,"identity":"1a47f491-0f8b-485b-995a-846f4ba057d3","added_by":"auto","created_at":"2025-10-28 18:22:04","extension":"png","order_by":3,"title":"Figure 3","display":"","copyAsset":false,"role":"figure","size":82771,"visible":true,"origin":"","legend":"\u003cp\u003eModerating Effect of Digital Finance\u003c/p\u003e","description":"","filename":"3.png","url":"https://assets-eu.researchsquare.com/files/rs-7391497/v1/60cc00642d9298a8b338d695.png"},{"id":96917592,"identity":"c01795ee-7cae-4206-a3fd-1bd08b53251a","added_by":"auto","created_at":"2025-11-27 14:10:11","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1621093,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-7391497/v1/fef2c19c-56c9-4e7e-85d2-8c8e8b7d9ee1.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Reconstructing Digital Transformation Capabilities: A TOE-Dynamic Capability Perspective with Digital Finance as a Boundary Enhancer","fulltext":[{"header":"1. Introduction","content":"\u003cp\u003eIn the context of rapid digital economic development and the comprehensive advancement of China's \"dual carbon\" strategy, digital transformation has emerged as a strategic imperative for both national policy and corporate competitiveness(Chen, J. et al., \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). The 14th Five-Year Plan for Digital Economy Development explicitly calls for the integration of digital technologies across industrial value chains, elevating digital capabilities to a central position in enterprise strategy. However, many firms still struggle with underdeveloped capabilities and fragmented resource integration, leading to significant disparities in transformation outcomes. As such, identifying how digital transformation capabilities are formed and how they influence firm performance has become a critical agenda for both theoretical advancement and practical guidance(Hortovanyi et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eExtant literature underscores that digital transformation capabilities are not innate but result from the interplay between external sensing and internal reconfiguration, reflecting the foundational logic of the dynamic capabilities theory\u0026mdash;namely, the sequence of sensing, seizing, and transforming(Wagner \u0026amp; Kurpjuweit, \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). To better illustrate how a firm adapts to a changing and complex environment, this study applies the Technology\u0026ndash;Organization\u0026ndash;Environment (TOE) framework as an additional perspective. Within the framework of the TOE model, sustainability orientation and network structural advantage are considered external sensors, while the internal reconfiguration route comprises digital innovation and cultural flexibility. These two paths capture the ways in which firms leverage external resources and internal capability absorption and transformation processes.\u003c/p\u003e\u003cp\u003eThis study places primary importance on digital finance, a swiftly developing external driver of change which integrates technological tools with financial services. Innovations in fintech infrastructure have heightened capital accessibility while lowering transaction costs to firms. Its role, however, is paradoxical. While it can increase readiness to transform, it can also boost overdependence, thereby undermining a firm\u0026rsquo;s internal capacity building. More critically, the institutional expansion of digital finance often outpaces the capability evolution of enterprises, leading to a structural mismatch between financial supply and absorptive capacity. This may explain mixed empirical findings on its moderating effects.\u003c/p\u003e\u003cp\u003eTo address these gaps, this study constructs a dual-path framework based on \"external sensing\u0026ndash;internal reconfiguration\" to identify key enablers of digital transformation capabilities and investigate the boundary-enhancing role of digital finance along these paths. Theoretically, this research integrates the TOE framework into the dynamic capability view, enhancing the model's contextual adaptability and structural coherence. Empirically, it reveals a dual mechanism\u0026mdash;activation and substitution\u0026mdash;through which digital finance moderates capability formation, thereby refining our understanding of tool-based environmental variables.\u003c/p\u003e\u003cp\u003eThis study contributes to the literature on digital transformation in three novel ways. First, it disentangles the mechanisms through which external and internal elements shape digital transformation capabilities, deepening the structural understanding of dynamic capabilities. Second, it builds an integrated framework combining vertical (evolutionary) and horizontal (contextual) perspectives, thereby clarifying how capability boundaries adapt to specific environmental configurations. Third, it reconceptualizes digital finance as a functional environmental tool, highlighting its marginal moderation effects and potential for mismatch when capability development lags behind technology adoption. Collectively, these contributions extend the theoretical frontiers of digital transformation research under dynamic and digitized contexts.\u003c/p\u003e\u003cp\u003eThe remainder of this paper is organized as follows: Section \u003cspan refid=\"Sec2\" class=\"InternalRef\"\u003e2\u003c/span\u003e reviews the relevant literature and theoretical foundations and presents the research hypotheses. Section \u003cspan refid=\"Sec8\" class=\"InternalRef\"\u003e3\u003c/span\u003e outlines the research design, including measurement development, survey design, and data collection. Section \u003cspan refid=\"Sec11\" class=\"InternalRef\"\u003e4\u003c/span\u003e presents the empirical results along with the corresponding path analysis. Section \u003cspan refid=\"Sec15\" class=\"InternalRef\"\u003e5\u003c/span\u003e covers the theoretical and practical implications of the study and proposes avenues for further investigation.\u003c/p\u003e"},{"header":"2. Literature Review","content":"\u003cdiv id=\"Sec3\" class=\"Section2\"\u003e\u003ch2\u003e2.1 Digital Business Capabilities to Obtain Competitive Advantages\u003c/h2\u003e\u003cp\u003eIn the context of the scholarship derived from the ongoing phenomenon that is what the contemporary digital economy entails, how firms are formulating and using digital technologies to develop and augment their performance has become a prominent focus among scholars of management. The Dynamic Capabilities Theory (DCT) allows one to answer this question by suggesting that an enterprise must at least possess the ability to sense opportunities and threats from the environment, deploy organisational resources, and continually adapt the resource capability configurations to reap enduring competitive advantage (Teece, \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2007\u003c/span\u003e). This explanation provides a comprehensive account of organisational responses to technological change and complexity and is useful in studying the factors that influence capability development throughout the process of digital transformation(Oliveira et al., \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eSimultaneously, the Technology\u0026ndash;Organisation\u0026ndash;Environment (TOE) framework provides a more coherent account for studying the adoption of technology in organisations (Tornatzky et al., \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e1990\u003c/span\u003e). It states that innovation behaviour is determined by three interrelated dimensions which are: technological conditions, including the development stage and availability of the technologies; organisational infrastructure which comprises culture, workplace morale, and managerial adaptability; and the external environment, which includes the characteristics of the industry and its regulatory environment(Xue et al., \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). In the context of this study, the application of the TOE framework adds value by illustrating the interaction of multidimensional factors in the development of digital transformation capabilities.\u003c/p\u003e\u003cp\u003eThis research connects DCT and TOE to define digital transformation capability as the operational embodiment of the sensing\u0026ndash;\u0026ndash;integration\u0026ndash;\u0026ndash;reconfiguration loop spanning multiple domains. This research also delineates differing influence pathways resulting from a technological input (digital innovation)(Li \u0026amp; Zhou, \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), organisational structure (cultural flexibility)(Butt et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2024\u003c/span\u003e), strategic focus (sustainability)(Valero-Gil et al., \u003cspan citationid=\"CR40\" class=\"CitationRef\"\u003e2024\u003c/span\u003e), network embeddedness(Luo et al., \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2025\u003c/span\u003e), and ecosystem attributes (digital finance)(Y\u0026aacute;\u0026ntilde;ez-Vald\u0026eacute;s \u0026amp; Guerrero, \u003cspan citationid=\"CR46\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). More specifically, the external sensing pathway captures firm responses to macro-level drivers like green transition and industrial upgrading while the internal reconfiguration pathway concentrates on changing technology, processes, and culture within the firm\u0026rsquo;s boundary. This dual-path lens not only deepens understanding of capability formation mechanisms but also provides a foundation for analyzing their performance implications and the boundary conditions under which digital finance moderates these effects.\u003c/p\u003e\u003cp\u003eFurthermore, this study treats digital finance as a functional environmental tool rather than a formal institutional arrangement. Its role as an enabler of digital transformation is twofold: it may exert incentive effects by enhancing financial flexibility or substitution effects by discouraging internal capability development. Given the frequent disconnect between the rapid expansion of financial technologies and the slower pace of organizational adaptation, structural mismatches often emerge. This perspective helps to capture the marginal utility\u0026mdash;and potential limitations\u0026mdash;of tool-based environmental variables in capability evolution, thereby enhancing the model\u0026rsquo;s contextual relevance.\u003c/p\u003e\u003cp\u003eIn sum, as firms navigate the challenges of the digital era, they must not only embrace technological advances but also cultivate dynamic resource integration and reconfiguration capacities. This study integrates DCT and TOE to construct a framework based on two logics\u0026mdash;external sensing and internal reconfiguration\u0026mdash;for analyzing the mechanisms by which digital capabilities are shaped, laying the groundwork for the hypotheses that follow. The theoretical model is presented in Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e.\u003c/p\u003e\u003cp\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec4\" class=\"Section2\"\u003e\u003ch2\u003e2.2 External Sensing Path: Strategic and Network-Based Responses\u003c/h2\u003e\u003cp\u003eAccording to the DCT, the first requirement for firms operating in turbulent environments is sensing\u0026mdash;the ability to perceive external changes, identify emerging opportunities, and proactively craft strategic responses (Teece, \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2007\u003c/span\u003e). From this perspective, a sustainability-oriented strategy serves not only as a top management response to green transition and social responsibility trends but also as a manifestation of long-term value orientation and strategic foresight (Dangelico \u0026amp; Vocalelli, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). In the context of the TOE framework, the described strategy works as a responsive approach to situational ambiguity, augmenting the firm\u0026rsquo;s responsiveness to policy, technology, and market shifts (Mi et al., \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Thus,\u003c/p\u003e\u003cp\u003eH1: A firm\u0026rsquo;s sustainability-oriented strategy positively influences its digital transformation capability.\u003c/p\u003e\u003cp\u003eMoreover, a firm\u0026rsquo;s structure of the network, as well as its embeddedness in the resource system and information system externally, constitute vital components of its sensing capability. Social capital theory suggests (Nahapiet \u0026amp; Ghoshal, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e1998\u003c/span\u003e)that firms with greater embeddedness within industrial networks have relatively stronger capacities for sensing pertaining to active technologically advanced innovations, institutional changes, and other market activities. Within the context of the TOE framework, network structure is regarded as part of the environmental context, illustrating its importance for the flow of information, connectivity of the platforms, and learning beyond the organisation (Xue et al., \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). In the context of digital transformation, firms with less advantageous positions in networks lag behind in perceiving and adopting digital change and thus impede the acceleration of transformation. Therefore,\u003c/p\u003e\u003cp\u003eH2: A firm\u0026rsquo;s network structural advantage positively influences its digital transformation capability.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec5\" class=\"Section2\"\u003e\u003ch2\u003e2.3 Internal Reconfiguration Path: Organisational Technology and Culture Adaptability Shifts\u003c/h2\u003e\u003cp\u003eThe second stage of dynamic capabilities\u0026mdash;seizing and reconfiguring\u0026mdash;captures how firms integrate external opportunities into organisational resources and capabilities. As a component of dynamic capabilities, digital innovation capability indicates the extent to which a firm can adopt and utilise emergent technologies like big data, artificial intelligence, and the Internet of Things. This attribute is essential in the formation of the digital transformation capacity (Yoo et al., \u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). Within the TOE framework, this corresponds with the technological context, which centres on the firm\u0026rsquo;s willingness to identify and leverage pertinent transformative technologies. Prior studies stress that digital innovation capability serves as a conduit between resource integration and process reengineering, influencing the scope and sophistication of a firm\u0026rsquo;s transformational activities (Bansal et al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Thus,\u003c/p\u003e\u003cp\u003eH3: A firm\u0026rsquo;s digital innovation capability positively influences its digital transformation capability.\u003c/p\u003e\u003cp\u003eAt the same time, a firm\u0026rsquo;s cultural openness influences its ability to learn, collaborate, manage uncertainty, and build digital capabilities. This aspect promotes productivity at different levels, aids in process and system adoption, and reinforces internal process reengineering (Anglani et al., \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Within the TOE framework, the organisational context includes culture as a fundamental driver of whether an organisation can successfully capture new technologies and transform them into measurable operational outputs. Empirical evidence suggests that firms exhibiting high cultural flexibility display enhanced adaptability when faced with multifaceted digital technologies and structural change (Angelopoulos et al., \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Thus:\u003c/p\u003e\u003cp\u003eH4: A firm\u0026rsquo;s cultural flexibility positively influences its digital transformation capability.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec6\" class=\"Section2\"\u003e\u003ch2\u003e2.4 Value Realization of Digital Transformation Capability\u003c/h2\u003e\u003cp\u003eThe focus of dynamic capabilities goes beyond simple resource allocation to address the outcomes of superior performance achievement. As an integrative mediating construct, digital transformation capability connects technological adoption with organisational performance; hence, mediating as the determinant of an integrative transformation within a firm. Prior research has shown that more digitally enabled firms have better operational efficiency, quicker customer responsiveness, and greater market expansion compared to their less digitised peers (Sarwar et al., \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). In the same manner, Sarwar et al. (\u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) explain that digital capabilities enhance execution and coordination efficiency which strengthens the strategic performance of the firm overall. Hence,\u003c/p\u003e\u003cp\u003eH5: A firm\u0026rsquo;s digital transformation capability positively influences its performance.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec7\" class=\"Section2\"\u003e\u003ch2\u003e2.5 The Instrumental Moderating Role of Digital Finance\u003c/h2\u003e\u003cp\u003eWithin the environmental dimension of the TOE framework, the focus extends beyond institutional and technological infrastructure to include access to financial resources and the systems that support them. This study conceptualizes digital finance as a typical instrumental environmental variable, characterized by efficiency, broad accessibility, and data-driven functionalities. Through digital finance, firms have become more responsive in relation to garnering funds, payments, risk assessment, and other related services (Khalid, F. et al., \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). From an RBV view, the availability and liquidity of financial capital as bank loans stand as vital contextual factors affecting a firm's dormant, latent, or existing capabilities (Baran et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2025\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eNevertheless, the ramifications of digital finance on the development of organisational capabilities are mixed. As an example, digital finance works through a motivational mechanism by freeing marginal internal capability release, as a result improving credit access and lowering transaction costs. Conversely, in companies with no basic integration or readiness to transform, over-reliance on exogenous financial mechanisms may diminish momentum of internal capability development in a resource substitution impact (Du et al., \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). This particularly concerning risk occurs when the evolution of a company\u0026rsquo;s capacity lags adaptation of its digital financial infrastructure, causing a structural imbalance between the available tools and capabilities which risks undermining the efficacy of digital finance on strengthening performance.\u003c/p\u003e\u003cp\u003eEquipped with this framework, this study aims to investigate the impact of digital finance as an enabler within the capability formation process and formulates the following hypotheses:\u003c/p\u003e\u003cp\u003eH6: Digital finance impacts firm performance positively.\u003c/p\u003e\u003cp\u003eH7a: Digital finance positively moderates the impact of sustainability strategy on digital transformation capability.\u003c/p\u003e\u003cp\u003eH7b: Digital finance positively moderates the effect of network structure advantage on digital transformation capability.\u003c/p\u003e\u003cp\u003eH7c: Digital finance positively moderates the effect of digital innovation capability on digital transformation capability.\u003c/p\u003e\u003cp\u003eH7d: Digital finance positively moderates the effect of cultural flexibility on digital transformation capability.\u003c/p\u003e\u003cp\u003eH7e: Digital finance positively moderates the effect of digital transformation capability on firm performance.\u003c/p\u003e\u003c/div\u003e"},{"header":"3. Research methodology","content":"\u003cdiv id=\"Sec9\" class=\"Section2\"\u003e\u003ch2\u003e3.1 Data source\u003c/h2\u003e\u003cp\u003eThis study conducted a field survey targeting manufacturing firms in Henan Province, China. Data were collected through an online questionnaire distributed via the SoJump platform. To ensure data quality, a screening question at the beginning of the survey verified that respondents were internal employees with a basic understanding of their firm's digital transformation processes(Castura et al., \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Among the 648 collected responses, 502 valid questionnaires were retained after removing entries with excessively short completion times or inconsistent answers, resulting in a valid response rate of 77.4%.\u003c/p\u003e\u003cp\u003eThe demographic and organizational characteristics of the sample are summarized in Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e. In terms of gender distribution, female respondents accounted for 70.92%, while male respondents made up 29.08%. Regarding age, 49.4% of participants were aged 35 or younger, suggesting a relatively young respondent pool, likely more familiar with digital tools. As for firm age, 62.35% of the surveyed firms had been established for less than five years, indicating a high proportion of startups and SMEs in the region\u0026rsquo;s manufacturing sector. Additionally, 80.08% of respondents were employed in firms with fewer than 1,000 employees, further confirming the sample\u0026rsquo;s focus on small and medium-sized enterprises.\u003c/p\u003e\u003cp\u003eBeyond basic demographics and organizational features, the questionnaire also measured respondents\u0026rsquo; subjective perceptions of their firms' use of digital finance, digital transformation progress, and organizational performance using a five-point Likert scale. The average score for digital finance adoption was 2.883, slightly below the neutral midpoint of 3, suggesting that most firms remain at a low-to-moderate stage of digital finance integration. The average score for digital transformation progress was 3.056, reflecting a moderately positive outlook. Meanwhile, firm performance received an average rating of 3.450, indicating generally favourable evaluations of current business outcomes.\u003c/p\u003e\u003cp\u003eOverall, the dataset provides a solid empirical foundation to examine how internal and external capabilities jointly shape digital transformation and firm performance. It also reflects the structural reality of China\u0026rsquo;s manufacturing landscape\u0026mdash;dominated by SMEs and marked by uneven digital progress.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eCharacteristics of the sample\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eQuestion\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOptions\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eFrequency\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eGender\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMale\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e146\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFemale\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e356\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eAge\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e\u0026le;\u0026thinsp;25\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e146\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e26\u0026thinsp;~\u0026thinsp;35\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e102\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e36\u0026thinsp;~\u0026thinsp;45\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e89\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e46\u0026thinsp;~\u0026thinsp;55\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e83\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e\u0026ge;\u0026thinsp;55\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e82\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eYears in business\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e\u0026le;\u0026thinsp;2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e177\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e3\u0026thinsp;~\u0026thinsp;5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e136\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e6\u0026thinsp;~\u0026thinsp;10\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e96\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e\u0026ge;\u0026thinsp;10\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e93\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEmployee Size\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e\u0026le;\u0026thinsp;200\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e162\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e200\u0026thinsp;~\u0026thinsp;500\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e130\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e500\u0026thinsp;~\u0026thinsp;1000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e110\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e\u0026ge;\u0026thinsp;1000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e100\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec10\" class=\"Section2\"\u003e\u003ch2\u003e3.2 Measurement items\u003c/h2\u003e\u003cp\u003eTo guarantee reliability and context appropriateness, adaptations of local and global scales were used for all variables of this study. A 5-level Likert scale with the endpoints, \u0026ldquo;strongly disagree\u0026rdquo; and \u0026ldquo;strongly agree\u0026rdquo; was used to evaluate all items. The construct of sustainability strategy was captured through three items measuring strategic orientation with regard to market position, supply chain operations, and technology development as put forth by Wijethilake (\u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) and Eide et al.(2020). The construct of digital innovation was evaluated through four items which were changed academically authored by Paladino (\u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2007\u003c/span\u003e) and Zhao et al. (\u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) concerning the innovation level of digital products and services as well as processes.\u003c/p\u003e\u003cp\u003eThe works of Galindo-Mart\u0026iacute;n et al. (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) and Leo et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) provided seven items which were used to measure the digital transformation capability of an enterprise. These items reflect an enterprise's capacity to adopt, integrate, and implement digital technologies across various functions. Aisaiti et al. (\u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) provided five questions which assessed the use of digital finance from both a historical perspective and prospective outlook, encapsulating user engagement and intention toward digital financial instruments. Finally, the high-quality development of enterprises was measured through innovation performance, resource efficiency, growth potential, and value creation using six items from Achi et al. (\u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and Su et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) All constructs were purposefully tailored to the scope of this study while preserving their essential relationships.\u003c/p\u003e\u003cp\u003eTo measure network structure, this study adopts a second-order construct approach using a reflective\u0026ndash;formative model, in which two first-order dimensions\u0026mdash;network connectivity and network support\u0026mdash;serve as formative components. Each dimension was measured using three items adapted from Khalid et al. (\u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Wu (\u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), capturing the scope of inter-organizational interactions and the degree of resource and knowledge support received from network partners. This multidimensional perspective allows for a more nuanced representation of a firm's embeddedness and relational capital within external networks.\u003c/p\u003e\u003c/div\u003e"},{"header":"4. Analysis results","content":"\u003cdiv id=\"Sec12\" class=\"Section2\"\u003e\u003ch2\u003e4.1 Model estimation\u003c/h2\u003e\u003cp\u003eTo ensure the robustness of model estimation, we first conducted a Kaiser-Meyer-Olkin (KMO) test, which yielded a value of 0.9654\u0026mdash;well above the recommended threshold of 0.9\u0026mdash;indicating strong sampling adequacy for factor analysis (Deku et al., \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Given the questionnaire-based data collection, the potential for common method bias was examined using Harman\u0026rsquo;s single-factor test. Results showed that the first principal component accounted for 48.46% of the total variance, which is below the 50% threshold, suggesting that common method bias is not a serious concern(Saxena et al., \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eA confirmatory factor analysis (CFA) was employed in our study to ascertain whether each concept was sufficiently distinctive from the others (Elibal \u0026amp; \u0026Ouml;zceylan, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). This analysis confirms whether the survey questions pertaining to each of the topics\u0026mdash;inquiries about digital finance, digital transformation capability, enterprise performance, cultural flexibility, sustainability strategy, digital innovation, and network structure\u0026mdash;are measuring distinct constructs. This step was necessary to ensure that these critical variables were captured without intersection or ambiguity, which is essential for the model's dependability and transparency. The CFA verified a seven-factor model as having a substantially better fit than competing models with SRMR\u0026thinsp;=\u0026thinsp;0.027 (\u0026lt;\u0026thinsp;0.08), CFI\u0026thinsp;=\u0026thinsp;0.967, TLI\u0026thinsp;=\u0026thinsp;0.963, and χ\u0026sup2;/df\u0026thinsp;=\u0026thinsp;1.975, all of which passed benchmark criteria, thus confirming strong discriminant validity and structural reliability.\u003c/p\u003e\u003cp\u003e(Setti et al., 2022).\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec13\" class=\"Section2\"\u003e\u003ch2\u003e4.2 Reliability and validity analysis\u003c/h2\u003e\u003cp\u003eWe further assessed the reliability and convergent validity of the measurement model using Cronbach\u0026rsquo;s alpha and average variance extracted (AVE). All latent constructs reported Cronbach\u0026rsquo;s alpha values exceeding 0.82 and AVE values above 0.72, surpassing the commonly accepted threshold of 0.70 (Cheung et al., 2024), thereby demonstrating strong internal consistency and convergent validity. Among them, digital transformation capability (α\u0026thinsp;=\u0026thinsp;0.958, AVE\u0026thinsp;=\u0026thinsp;0.800) and enterprise performance (α\u0026thinsp;=\u0026thinsp;0.955, AVE\u0026thinsp;=\u0026thinsp;0.816) exhibited the highest reliability. Cultural flexibility (α\u0026thinsp;=\u0026thinsp;0.885), digital finance (α\u0026thinsp;=\u0026thinsp;0.904), and digital innovation (α\u0026thinsp;=\u0026thinsp;0.892) also showed excellent internal consistency, each with AVE values above 0.72. Likewise, network structure (α\u0026thinsp;=\u0026thinsp;0.923, AVE\u0026thinsp;=\u0026thinsp;0.722) and sustainability strategy (α\u0026thinsp;=\u0026thinsp;0.826, AVE\u0026thinsp;=\u0026thinsp;0.742) demonstrated reliable measurement properties, as shown in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eReliability and Validity Statistics of Construct Measures\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"11\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c9\" colnum=\"9\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c10\" colnum=\"10\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c11\" colnum=\"11\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVar.\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eItems\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eLoadings\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003eCA\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003erho_a\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003erho_c\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003eAVE\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eSD\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSustainability Strategy\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.826\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.829\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.896\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.742\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003esd1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eTop management supports and executes a sustainable supply chain strategy.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.873\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003esd2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe industry has strong IT capacity to meet current sustainability trends.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.844\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003esd3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe industry is more than capable in regard to information technology to cope with the recent trends in sustainability.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.866\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eNW\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eNetwork Diagram\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.923\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.924\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.940\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.722\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003enetwork support\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.923\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c6\" namest=\"c5\"\u003e\u003cp\u003e0.923\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c8\" namest=\"c7\"\u003e\u003cp\u003e0.940\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c10\" namest=\"c9\"\u003e\u003cp\u003e0.722\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"1\" nameend=\"c11\" namest=\"c11\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company maintains both formal and informal relationships with a wide range of suppliers in the same industry.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.862\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company frequently engages in formal and informal exchanges with customers within the same industry.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.873\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company actively interacts with other businesses through both formal partnerships and informal networks.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.841\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enc\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003enetwork connection\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.911\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c6\" namest=\"c5\"\u003e\u003cp\u003e0.911\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c8\" namest=\"c7\"\u003e\u003cp\u003e0.944\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c10\" namest=\"c9\"\u003e\u003cp\u003e0.849\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"1\" nameend=\"c11\" namest=\"c11\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMost project team members are well-informed about our company's operations and strategic goals.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.842\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eProject team members can easily communicate with our company to share technical knowledge and practical experience.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.847\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003enw6\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOther project collaborators expect our company to provide valuable managerial guidance and technical support when needed.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.832\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eCF\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCultural Flexibility\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.885\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.886\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.929\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.813\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ecf1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company holds a cultural atmosphere that promotes innovation.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.903\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ecf2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company promotes collaboration and social relations among different functional staff with different roles.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.900\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003ecf3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company's employees have the active learning and positive wishing behavioural skills.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.903\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital Innovation\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.892\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.894\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.925\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.755\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edi1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company uses digital technology to enhance product/service R\u0026amp;D.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.879\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edi2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company improves delivery efficiency through digital tools.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.856\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edi3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital technology supports product/service R\u0026amp;D innovation.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.879\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edi4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company uses digital tools to strengthen change management.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.860\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital Transformation Capabilities\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.958\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.958\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.965\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.800\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eAll digitizable operations in my industry are automated.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.890\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital systems collect cross-disciplinary data in my industry.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.901\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital tech links supply chain activities via an integrated system.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.904\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital processes improve consumer interaction in my industry.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.900\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eManufacturers and suppliers share data digitally.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.883\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt6\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eIndustry decisions rely on AI and predictive analytics.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.889\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edt7\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSupply chain processes are widely automated.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.891\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eEnterprise Performance\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.955\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.955\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.964\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.816\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eep1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company outperforms competitors in annual sales volume.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.908\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eep2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company outperforms competitors in sales growth.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.899\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eep3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company outperforms competitors in the growth of market share.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.895\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eep4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eThe company's customers, when compared to competitors, regard the company's core products and services highly.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.907\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eep5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eWhen compared to industry competitors, the company's headcount is expanding at an unprecedented rate.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.911\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eep6\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eWhen compared to industry competitors, the company is viewed positively with regards to overall reputation.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.901\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDF\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDigital Finance\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u003cp\u003e0.904\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u003cp\u003e0.905\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u003cp\u003e0.929\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u003cp\u003e0.724\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edf1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company avails of digital financial services in support of its operations or projects aimed at innovations.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.833\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edf2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFor our company, digital finance will continue to be a part of its long-term financing or investment policy.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.854\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edf3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company has business needs and utilises digital financial tools like online lending and payment systems.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.855\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edf4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company is satisfied with the outcomes realised through digital finance such as faster access to capital and lower costs of financing.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.849\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003edf5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eOur company recommends digital financial services to industry counterparts.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.863\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c9\" namest=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c11\" namest=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eAs shown in Table\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e, all HTMT values fall below the conservative threshold of 0.85 (Purwanto \u0026amp; Sudargini, \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), with the highest observed value being 0.553 between cultural flexibility and digital finance. These results additionally corroborate that the latent variables satisfy the Fornell-Larcker Criterion. The findings above further confirm that the latent variables possess satisfactory discriminant validity. Although digital transformation capability shares relatively strong correlations with enterprise performance, network structure, and digital finance, none of the correlations exceed the critical thresholds, suggesting sufficient theoretical independence and empirical distinctiveness. Overall, the measurement model demonstrates robust discriminant validity, supporting the validity of subsequent structural path analysis.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eFornell Lacker Criterion and HTMT Results\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"8\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariables\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSD\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eNW\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eCF\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eDI\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eDT\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eEP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e\u003cp\u003eDF\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eSD\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.861\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.283\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.491\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.475\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.465\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.486\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.596\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eNW\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.249\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.850\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.352\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.393\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.672\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.692\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.724\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eCF\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.420\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.320\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.902\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.285\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.422\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.402\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.553\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.410\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.357\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.256\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.869\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.557\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.580\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.584\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.415\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.633\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.388\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.516\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.894\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.804\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.740\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.433\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.650\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.370\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.537\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.770\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.904\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.799\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDF\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.517\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.662\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.495\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.526\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.689\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.744\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003e0.851\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"8\"\u003eNote: The upper right corner is the HTMT result, the diagonal is the square root of AVE and the lower left corner is the Fornell acker Criterion result\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThis study conceptualizes \u0026ldquo;network structure\u0026rdquo; (NW) as a formative second-order construct composed of two reflective first-order dimensions: network connection (NC) and network support (NS), in order to comprehensively capture the structural characteristics of firms\u0026rsquo; external information flows and resource embeddedness. Using PLS-SEM, the path estimation and multicollinearity diagnostics were conducted. Table\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e shows that both NC and NS make statistically significant contributions to the higher-order NW construct, with standardized loadings of 0.614 (t\u0026thinsp;=\u0026thinsp;8.584, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) and 0.474 (t\u0026thinsp;=\u0026thinsp;6.393, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), respectively. These results exceed the commonly accepted significance thresholds, confirming the formative validity of the construct. In terms of multicollinearity, the variance inflation factor (VIF) values for NC and NS were both 1.887, well below the critical threshold of 5, indicating no significant multicollinearity concerns in the formative model (Hair, J. F. et al., 2021). These findings validate the conceptualization of NW as a formative second-order construct, exhibiting strong explanatory and measurement adequacy in reflecting firms\u0026rsquo; network structures.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eSecond Order Verification\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"6\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariables\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eVIF\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWeight\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSTD\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eT statistics\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eP values\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eNC\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e1.887\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.614\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.072\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e8.584\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eNS\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e1.887\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.474\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.074\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e6.393\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eTo further ensure the robustness of the structural model, we assessed multicollinearity across latent variables using VIF. A VIF value below 5 generally suggests the absence of severe multicollinearity (Hair, J. et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Kock et al., \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2012\u003c/span\u003e). Table\u0026nbsp;\u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e reports the VIF statistics for all endogenous constructs. When digital transformation capability (DT) is the dependent variable, the VIF values for its predictors\u0026mdash;cultural flexibility (CF), digital innovation (DI), network structure (NW), and sustainability strategy (SD)\u0026mdash;range from 1.228 to 1.380, all well below the critical level. When enterprise performance (EP) serves as the dependent variable, the VIF values for DT, digital finance (DF), DI, NW, CF, and SD are 2.464, 3.016, 1.554, 2.111, 1.442, and 1.565, respectively\u0026mdash;all again below 5. These results indicate no significant multicollinearity risk in the structural model. Therefore, the estimated paths are statistically independent and reliable, providing a solid foundation for the structural equation modelling.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab5\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eVIF Results of Inner Models\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"7\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariables\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCF\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eDF\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eDI\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eDT\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eNW\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eSD\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e1.297\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e1.309\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e1.228\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e1.38\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e1.442\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e3.016\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e1.554\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e2.464\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e2.111\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e1.565\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec14\" class=\"Section2\"\u003e\u003ch2\u003e4.3 Hypothesis testing and analysis\u003c/h2\u003e\u003cp\u003eFollowing the guidelines of Aburumman et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), the explanatory power of each latent variable was assessed using the F-square (ƒ\u0026sup2;) statistic. The results indicate that digital transformation capability exhibits a strong explanatory effect on enterprise performance (ƒ\u0026sup2; = 0.480), as does digital finance (ƒ\u0026sup2; = 0.2749), while network structure demonstrates a considerable impact on digital transformation capability (ƒ\u0026sup2; = 0.383). The model's explanatory power is moderate in two aspects: the impact of innovation on digital finance ( ƒ\u0026sup2; = 0.112) ) and the moderating effect of digital finance on the relationship between transformation capability and performance ( ƒ\u0026sup2; = 0.114). On the other hand, the effect of cultural flexibility and sustainability strategy on digital transformation capability is weaker relative to other areas of the model, with both effect sizes below 0.1 (ƒ\u0026sup2; \u0026lt; 0.1). As outlined in Table\u0026nbsp;\u003cspan refid=\"Tab6\" class=\"InternalRef\"\u003e6\u003c/span\u003e, the model captures the most relevant variance in digital transformation capability resulting in an R\u0026sup2; of 0.535 and demonstrating strong predictive relevance with a Q\u0026sup2; of 0.525. The error metrics, RMSE\u0026thinsp;=\u0026thinsp;0.691 and MAE\u0026thinsp;=\u0026thinsp;0.556, fall within acceptable ranges, indicating sound predictive relevance. For the enterprise performance model, the R\u0026sup2; reaches 0.731 and Q\u0026sup2; is 0.613, with RMSE and MAE values of 0.624 and 0.496, respectively. These findings confirm the high explanatory and predictive power of the structural model, further validating the robustness of the estimated path relationships.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab6\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eStructural Model Predictive Performance Summary\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"6\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariables\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eR-square\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eR-square adjusted\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eQ\u0026sup2;predict\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eRMSE\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eMAE\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.535\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.531\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.525\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.691\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.556\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eEP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e0.731\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.725\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.613\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.624\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.496\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eThe analysis of the main structural paths reveals that most hypothesized relationships are statistically significant. The factors sustainability strategy (SD), network structure (NW), cultural flexibility (CF), and digital innovation (DI) all enhance transformation capability\u0026mdash;shifting towards a more digitally advanced firm\u0026mdash; (DT). Out of all the factors, network structure exhibits the greatest impact (β\u0026thinsp;=\u0026thinsp;0.469, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) which underscores the significance of external relational ties in enabling transformation. In a different perspective, digital innovation also having a noteworthy impact (β\u0026thinsp;=\u0026thinsp;0.264, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) suggests that the ability of a firm to integrate and apply new technologies is crucial towardswards driving digital transformation.\u003c/p\u003e\u003cp\u003eAs shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e and Table\u0026nbsp;\u003cspan refid=\"Tab7\" class=\"InternalRef\"\u003e7\u003c/span\u003e, the impact of digital transformation capability on enterprise performance is strong and significant (β\u0026thinsp;=\u0026thinsp;0.453, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). This reinforces the argument that digital capabilities act as critical performance-enabled dynamic capabilities. Moreover, network structure (β\u0026thinsp;=\u0026thinsp;0.127, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) and digital innovation (β\u0026thinsp;=\u0026thinsp;0.099, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) also have noteworthy direct impacts, confirming their positions as key movers of enterprise performance enhancement.\u003c/p\u003e\u003cp\u003eHowever, the paths from SD to EP and from CF to EP are not statistically significant, implying that strategic and cultural mechanisms may influence performance indirectly through their effects on transformation capability.\u003c/p\u003e\u003cp\u003eFurthermore, digital finance (DF), included as a control variable, exhibits a strong direct effect on performance (β\u0026thinsp;=\u0026thinsp;0.305, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), highlighting its independent contribution as a tool-based external resource to improving enterprise outcomes.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab7\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eDirect Effect Results\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"8\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHy.\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePath\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOriginal sample (O)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSample mean (M)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eStandard deviation (STDEV)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eT statistics (|O/STDEV|)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eP values\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e\u003cp\u003eSupport\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH1a\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSD -\u0026gt;DT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.143\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.144\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.036\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e3.950\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH1b\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSD -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.022\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.023\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.027\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.822\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.411\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH2a\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eNW -\u0026gt;DT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.469\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.470\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.034\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e13.762\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH2b\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eNW -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.127\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.127\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.034\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e3.725\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH3a\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCF -\u0026gt;DT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.108\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.108\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.036\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e3.003\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.003\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH3b\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCF -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e-0.051\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e-0.051\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.026\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e1.951\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.051\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH4a\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDI -\u0026gt;DT\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.264\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.263\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.034\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e7.729\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH4b\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDI -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.099\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.100\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.028\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e3.593\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDT -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.453\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.453\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.036\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e12.423\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH6\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDF -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.305\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.304\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.041\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e7.470\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH7a\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDF x SD -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.027\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.026\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.027\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.969\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.332\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH7b\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDF x NW -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e-0.023\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e-0.022\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.037\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.606\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.544\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH7c\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDF x CF -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.013\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.013\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.026\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e0.503\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.615\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH7d\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDF x DI -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e-0.064\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e-0.065\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.029\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e2.220\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.026\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH7e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDF x DT -\u0026gt;EP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e0.226\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e0.226\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003e0.044\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003e5.080\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u003cp\u003e0.000\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eA further examination of the moderating role of digital finance (DF) across different paths reveals that only two of the five hypothesized interaction effects\u0026mdash;H7d and H7e\u0026mdash;are statistically supported. The other three interactions (DF \u0026times; SD, DF \u0026times; NW, DF \u0026times; CF) do not reach significance, suggesting that the moderating influence of digital finance is not uniformly applicable across all strategic or organizational factors but instead exhibits path specificity.\u003c/p\u003e\u003cp\u003eFor H7d, the interaction term shows a negative regression coefficient (β = \u0026minus;\u0026thinsp;0.064, p\u0026thinsp;\u0026lt;\u0026thinsp;0.05), indicating that digital finance weakens the positive relationship between digital innovation (DI) and enterprise performance (EP). While the slopes under all three levels of digital finance remain positive in the interaction plots, the incremental effect of DI on EP becomes less pronounced at higher levels of DF. This suggests that the marginal performance benefits of innovation are constrained when firms rely heavily on digital financial tools.\u003c/p\u003e\u003cp\u003eIn contrast, the interaction effect for H7e is strongly empirically confirmed with both a positive value and a significant t-statistic (β\u0026thinsp;=\u0026thinsp;0.226, t\u0026thinsp;=\u0026thinsp;5.080, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). This finding suggests that digital finance greatly improves the already-existing positive relation between digital transformation capability (DT) and enterprise performance. The slope analysis further reveals that under high levels of DF, the marginal effect of DT on EP is substantially amplified, whereas it diminishes under low DF conditions. These findings highlight the contingent role of digital finance as a tool-based environmental enabler that intensifies the performance returns of firms' internal transformation capabilities.\u003c/p\u003e\u003cp\u003eshown in Fig.\u0026nbsp;\u003cspan refid=\"Fig3\" class=\"InternalRef\"\u003e3\u003c/span\u003e.\u003c/p\u003e\u003cp\u003e\u003c/p\u003e\u003c/div\u003e"},{"header":"5. Discussion, implications and Limitation","content":"\u003cdiv id=\"Sec16\" class=\"Section2\"\u003e\u003ch2\u003e5.1 Discussion\u003c/h2\u003e\u003cp\u003eThis study empirically confirms that sustainable development strategy, network structural advantage, cultural flexibility, and digital innovation capability exert significant positive effects on digital transformation capability, thereby supporting the \u0026ldquo;sensing\u0026ndash;seizing\u0026ndash;transforming\u0026rdquo; framework central to dynamic capabilities theory (Teece, \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2007\u003c/span\u003e). In particular, the dominant role of network structure (NW \u0026rarr; DT, β\u0026thinsp;=\u0026thinsp;0.469, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) echoes Nahapiet and Ghoshal\u0026rsquo;s (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e1998\u003c/span\u003e) argument that structural social capital facilitates knowledge access and capability renewal. Additionally, the significant contribution of digital innovation capability (β\u0026thinsp;=\u0026thinsp;0.264, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) aligns with Del Giudice et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), who emphasize the role of \u0026ldquo;innovative recombination\u0026rdquo; in advancing digital transformation processes. These findings suggest that external opportunities for resource orchestration\u0026mdash;such as strategic sensitivity and network embeddedness\u0026mdash;combined with internal innovation adaptability mechanisms, jointly shape the dual engine driving capability reconfiguration. This reinforces the applicability of dynamic capabilities theory within the digital transformation context.\u003c/p\u003e\u003cp\u003eFurther analysis reveals that digital transformation capability positively affects enterprise performance (DT \u0026rarr; EP, β\u0026thinsp;=\u0026thinsp;0.453, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), consistent with prior studies that position digital capabilities as process-based mediators linking technological adoption to performance outcomes (Chen, W., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Mikalef \u0026amp; Krogstie, \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). This result supports the notion that digital transformation entails not only technological upgrades but also fundamental restructuring of firm-level resource allocation and organizational architecture. The triadic logic of the TOE framework\u0026mdash;Technology, Organization, and Environment\u0026mdash;is also validated in this study. Cultural flexibility (O dimension) and digital innovation (T dimension) capture firms\u0026rsquo; organizational adaptability and technological responsiveness, while variables such as network structure, sustainable strategy, and digital finance (E dimension) represent environmental enablers supporting resource access and cognitive framing. These results strengthen the structural robustness of the TOE model in analyzing digital transformation phenomena (Tornatzky et al., \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e1990\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eImportantly, the moderation analysis reveals a degree of theoretical tension. While the study hypothesized that digital finance would moderate key relationships with performance, most interaction terms were statistically insignificant. Only the interaction between digital finance and digital innovation showed a significant negative effect, whereas digital finance positively moderated the relationship between digital transformation and performance. These findings suggest that digital finance, when deployed in contexts where firms lack fully developed transformation capabilities, may inadvertently generate resource misallocation or reinforce path dependency\u0026mdash;consistent with Ding et al. (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) on the risks of \u0026ldquo;technological overshoot and organizational lag.\u0026rdquo; Conversely, for firms with mature transformation capabilities, digital finance serves as a performance catalyst. This heterogeneity of moderation effects calls for a re-conceptualization of digital finance as a context-contingent instrumental variable rather than a universal enabler. The findings also offer a nuanced extension to the environmental dimension of the TOE framework by highlighting its conditional and dynamic nature.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec17\" class=\"Section2\"\u003e\u003ch2\u003e5.2 Theoretical Contributions\u003c/h2\u003e\u003cp\u003eThis study offers three distinctive theoretical contributions. First, by distinguishing between the external perception path and the internal reconstruction path in the formation of enterprise digital transformation capability, it reconceptualizes the dynamic capability structure. Unlike previous research that typically treats dynamic capability as a homogeneous construct (Teece, \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2007\u003c/span\u003e; Wang \u0026amp; Ahmed, \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2007\u003c/span\u003e), this study reveals a layered mechanism in which external factors such as network structure and digital finance act as opportunity enablers, while internal drivers such as digital innovation and cultural flexibility activate transformation potential. This layered perspective enriches the internal composition of dynamic capabilities.\u003c/p\u003e\u003cp\u003eSecond, the study integrates the dynamic capability theory\u0026rsquo;s \u0026ldquo;sensing\u0026ndash;seizing\u0026ndash;transforming\u0026rdquo; logic with the TOE (Technology\u0026ndash;Organization\u0026ndash;Environment) framework, forming a hybrid theoretical model that balances structural hierarchy with contextual sensitivity. Rather than treating TOE merely as a control framework (Zhu et al., \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2006\u003c/span\u003e), this research embeds it into the capability-building process, thereby enhancing the model\u0026rsquo;s explanatory power in complex digital environments.\u003c/p\u003e\u003cp\u003eThird, the study redefines digital finance as a tool-like external variable rather than a static environmental factor. By exploring its conditional moderating role in different capability paths, it identifies a dual mechanism of \u0026ldquo;facilitation versus substitution.\u0026rdquo; This explains why the effect of digital finance on enterprise performance may vary based on firms\u0026rsquo; internal transformation maturity. It offers new insights into the boundary conditions of moderation effects, thus addressing an under-explored paradox in digital finance research.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec18\" class=\"Section2\"\u003e\u003ch2\u003e5.3 Managerial Implications\u003c/h2\u003e\u003cp\u003eSeveral practical insights emerge from this study. First, managers should adopt a path-matching strategy when developing digital transformation capability. In early stages, firms may prioritize leveraging digital finance and external networks to sense market opportunities; in later stages, emphasis should shift toward enhancing internal capabilities, such as cultural adaptability and innovation orientation, to enable sustained transformation.\u003c/p\u003e\u003cp\u003eSecond, the findings caution against an overreliance on digital finance as a substitute for internal resilience. Although digital finance facilitates access to capital and reduces transaction costs, it cannot replace the long-term value of organizational learning and adaptive culture. Managers are advised to treat digital finance as a complementary enabler rather than a standalone solution.\u003c/p\u003e\u003cp\u003eThird, the results underscore the importance of second-order capabilities\u0026mdash;such as cross-functional integration and data-driven coordination\u0026mdash;for effective digital transformation. Enterprises should move beyond siloed innovation initiatives and establish systemic digital governance mechanisms that align technological investments with strategic objectives.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec19\" class=\"Section2\"\u003e\u003ch2\u003e5.4 Policy Recommendations\u003c/h2\u003e\u003cp\u003eBased on the findings, this study proposes three policy directions. First, governments and financial institutions should consider designing mismatch-responsive digital finance policies. Specifically, they can tie financing qualifications to firms\u0026rsquo; internal digital capability maturity, ensuring that digital finance does not amplify transformation gaps between high- and low-capability firms.\u003c/p\u003e\u003cp\u003eSecond, policy emphasis should shift from coverage-first to fit-first. Instead of maximizing the spread of digital finance tools, regulators should focus on their contextual appropriateness. Establishing industry-specific digital maturity assessment frameworks can guide differentiated financial service provision, improving both efficiency and equity.\u003c/p\u003e\u003cp\u003eThird, a stage-based support system should be built for manufacturing firms undergoing digital transformation. This system should include sensing-stage subsidies (for awareness building), integrating-stage incentives (for digital tool adoption), and transformation-stage rewards (for performance outcomes). Such dynamic policy scaffolding can more effectively catalyze digital transformation in traditional industries.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec20\" class=\"Section2\"\u003e\u003ch2\u003e5.5 Limitation of research\u003c/h2\u003e\u003cp\u003eDespite its theoretical and empirical contributions, this study has several limitations. First, the empirical data were collected from manufacturing firms in Henan Province, which may limit the generalizability of the findings. Future research could expand the scope to multiple regions and industries to enable cross-context comparisons. Second, the measurement of digital finance was treated as a unified construct, without differentiating specific tools such as digital payments, supply chain finance, or online credit systems. Disaggregating these components in future studies would enhance explanatory precision. Third, while the model integrates external environmental factors and organizational capabilities, it does not account for micro-level behavioral variables such as managerial cognition or digital mental models. Incorporating such psychological mechanisms may help extend the explanatory chain from strategic conditions to capability formation and performance outcomes.\u003c/p\u003e\u003c/div\u003e"},{"header":"Declarations","content":"\u003cp\u003e\u003cstrong\u003eEthical Approval and Consent to Participate\u003c/strong\u003e\u003cp\u003eNot applicable. Ethical approval was not required for this study as it involved organizational-level data collection and did not include any human participants or personal identifying information. All participating firms were informed about the purpose of the study, and organizational consent was obtained prior to data collection.\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003ch2\u003eConsent for Publication\u003c/h2\u003e\u003cp\u003eThe authors have full consent for the publication of the article with HUMANITIES \u0026amp; SOCIAL SCIENCES COMMUNICATIONS.\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003ch2\u003eCompeting Interests\u003c/h2\u003e\u003cp\u003eThe authors declare that they have no competing interests.\u003c/p\u003e\u003c/p\u003e\u003ch2\u003eFunding\u003c/h2\u003e\u003cp\u003eThis work was supported by Key Scientific Research Projects of Higher Education Institutions in Henan, China (Grant No. 24A790030).\u003c/p\u003e\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\u003cp\u003eL.Z. and L.L. contributed to the conceptualization of the study. L.Z. was responsible for the methodology, software, and formal analysis. L.L. validated the study and performed the investigation. W.A. provided resources and contributed to data curation. L.Z. and L.L. wrote the original draft, while L.Z. and W.A. reviewed and edited the manuscript. L.Z. and L.L. were responsible for the visualization, and W.A. supervised the project. L.Z. managed the project administration and funding acquisition.\u003c/p\u003e\u003ch2\u003eAcknowledgement\u003c/h2\u003e\u003cp\u003eThis study is a part of the first author's Ph.D. work at the UCSI University, Kuala Lumpur, Malaysia.\u003c/p\u003e\u003ch2\u003eData Availability\u003c/h2\u003e\u003cp\u003eThe datasets generated and analyzed during the current study are available from the corresponding author upon reasonable request.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAburumman OJ, Omar K, Al Shbail M, Aldoghan M (2023) How to deal with the results of PLS-SEM? In Alareeni, B. \u0026amp; Hamdan, A. 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Eur J Inform Syst 15(6):601\u0026ndash;616. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1057/palgrave.ejis.3000650\u003c/span\u003e\u003cspan address=\"10.1057/palgrave.ejis.3000650\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Digital transformation capabilities, Dynamic capabilities theory, TOE framework, Digital finance, Organizational flexibility, Innovation strategy, Manufacturing firms","lastPublishedDoi":"10.21203/rs.3.rs-7391497/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-7391497/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eIn the face of accelerating digital disruption, understanding how firms build robust digital transformation capabilities (DTC) has become a critical research and managerial concern. This study integrates the Dynamic Capability Theory and the Technology–Organization–Environment (TOE) framework to propose a dual-path model that distinguishes between external sensing and internal reconfiguration mechanisms. Drawing on survey data from 502 manufacturing firms in China, we empirically examine how sustainable strategy, network structure, digital innovation, and cultural flexibility influence DTC, and how DTC subsequently enhances enterprise performance. We further introduce digital finance as a boundary-enhancing tool that moderates key transformation pathways. The results reveal that while all four antecedents positively affect DTC, the strength and significance of their effects vary. Notably, digital finance demonstrates both amplifying and substitutive moderating effects, enhancing the performance impact of DTC but weakening the effect of digital innovation on outcomes. These findings enrich the structural understanding of capability formation and shed light on the contingent role of fintech infrastructure. Theoretical and practical implications for dynamic capability development in digital contexts are discussed.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eJEL Codes\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eL21 – Business Objectives of the Firm\u003c/p\u003e\n\u003cp\u003eO32 – Technological Innovation and R\u0026amp;D\u003c/p\u003e\n\u003cp\u003eG23 – Non-bank Financial Institutions; Financial Instruments\u003c/p\u003e\n\u003cp\u003eD83 – Search; Learning; Information and Knowledge\u003c/p\u003e\n\u003cp\u003eM15 – IT Management\u003c/p\u003e","manuscriptTitle":"Reconstructing Digital Transformation Capabilities: A TOE-Dynamic Capability Perspective with Digital Finance as a Boundary Enhancer","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-10-28 16:46:20","doi":"10.21203/rs.3.rs-7391497/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"67392f23-d9b5-49d7-b241-f1573e8a572b","owner":[],"postedDate":"October 28th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[{"id":56883652,"name":"Business and commerce/Business and management"},{"id":56883653,"name":"Social science/Business and management"},{"id":56883654,"name":"Business and commerce/Information systems and information technology"}],"tags":[],"updatedAt":"2025-11-26T13:39:01+00:00","versionOfRecord":[],"versionCreatedAt":"2025-10-28 16:46:20","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-7391497","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-7391497","identity":"rs-7391497","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}