How does digital platform capability affect digital innovation? Evidence from manufacturing SMEs in China

Zhou Huiping and Zan Ao

Technological Forecasting and Social Change, 2025, vol. 221, issue C

Abstract: Despite growing attention to investigating the mechanisms of digital platform capability in improving economic outcomes, existing research has failed to understand whether and how digital platform capability affects digital innovation in manufacturing SMEs. Based on resource orchestration theory and survey data from 211 Chinese manufacturing SMEs, our analysis results first show that there is an inverted U-shaped relationship between the two sub-dimensions of digital platform capability (namely, platform integration capability and platform reconfiguration capability) and digital innovation. The findings further reveal that organizational resilience mediates relationships between platform integration capability, platform reconfiguration capability and digital innovation. The empirical results also indicate that high levels of digital technology usage steepens the inverted U-shaped relationships between platform integration capability, platform reconfiguration capability and manufacturing SMEs' digital innovation. Additionally, digital technology usage strengthens the positive relationship between platform integration capability and organizational resilience, but it has no moderating effect on the relationship between platform reconfiguration capability and organizational resilience. This study contributes to clarifying the ambiguous mechanism through which digital platform capability influences digital innovation, and provides practical guidance for manufacturing SMEs to boost digital innovation.

Keywords: Digital platform capability; Digital innovation; Manufacturing SMEs; Organizational resilience; Digital technology usage (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:221:y:2025:i:c:s0040162525003695

DOI: 10.1016/j.techfore.2025.124338

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