Promotion path of digital transformation in China's manufacturing industry based on technology-organisation-environment framework
DOI: https://doi.org/10.3846/jbem.2025.24959Abstract
As the global economy becomes increasingly digitalised, the digital transformation of manufacturing has become an important way to enhance national competitiveness and corporate viability. This study focuses on the digital transformation of the manufacturing industry. First, the digital transformation of listed manufacturing companies is scientifically measured and their current state of transformation analysed. Then, the technology-organisation-environment framework is used to examine the driving factors of digital transformation. Based on this, fuzzy-set qualitative comparative analysis is employed to summarise different digital transformation configurations. The findings show that the digital transformation of China’s manufacturing industry is still in its early stages, with significant regional differences. Achieving a high level of digital transformation can be accomplished through four paths: environment- dependent, strategic leadership, internally capability support, and comprehensive-driven approaches. Finally, practical guidance is provided on accelerating the digital transformation process and promoting high-quality development in the manufacturing industry.
Keywords:
digital transformation, driving factors, promotion path, TOE framework, fsQCA, manufacturing industryHow to Cite
Share
License
Copyright (c) 2025 The Author(s). Published by Vilnius Gediminas Technical University.

This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Baker, J. (2012). The Technology–Organization–Environment Framework. In Y. Dwivedi, M. Wade, & S. Schneberger (Eds.), Information systems theory: Vol. 28 Integrated Series in Information Systems (pp. 231–245). Springer. https://doi.org/10.1007/978-1-4419-6108-2_12
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471–482. https://doi.org/10.25300/MISQ/2013/37:2.3
Bouwman, H., Nikou, S., & De Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? Telecommunications Policy, 43(9), Article 101828. https://doi.org/10.1016/j.telpol.2019.101828
Cascio, W. F., & Montealegre, R. (2016). How technology is changing work and organizations. Annual Review of Organizational Psychology and Organizational Behavior, 3(1), 349–375. https://doi.org/10.1146/annurev-orgpsych-041015-062352
Chandra, P. (2025). Evaluating the TOE framework for technology adoption: A systematic review of its strengths and limitations. International Journal on Recent and Innovation Trends in Computing and Communication, 13(1), 76–82. https://ijritcc.org/index.php/ijritcc/article/view/11454
Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. The Journal of Strategic Information Systems, 28(1), 17–33. https://doi.org/10.1016/j.jsis.2018.11.003
Chen, C. Y., & Xu, J. H. (2020). Manufacturing enterprise digital transformation ability evaluation system and application. Science and Technology Management Research, 40(11), 46–51.
Chen, S. S., Lin, C. P., Yu, C. P., & Tang, R. (2025). Driving factors of the adoption of digital technology in manufacturing enterprises: A mixed-method study based on grounded theory and QCA. Science & Technology Progress and Policy. https://link.cnki.net/urlid/42.1224.G3.20250425.0913.002
Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L., & Chow, W. S. (2014). IT capability and organizational performance: the roles of business process agility and environmental factors. European Journal of Information Systems, 23(3), 326–342. https://doi.org/10.1057/ejis.2013.4
Chen, Z. H., & Sun, S. H. (2025). Digital transformation of manufacturing industry and new-quality productivity – Evidence from listed manufacturing companies in Shanghai and Shenzhen stock exchanges. The World of Survey and Research, 2, 32–43.
Du, Y. Z., Liu, Q. C., & Chen, J. Q. (2020). What kind ecosystem for doing business will contribute to city-level high entrepreneurial activity? A research based on institutional configurations. Management World, 36(9), 141–155.
Fang, X., & Zhang, W. (2022). Research on the implementation path of digital transformation of manufacturing industry. South Agricultural Machinery, 53(10), 41–43+46.
Fiss, P. C. (2011). Building better causal theories: A fuzzy set approach to typologies in organization research. Academy of Management Journal, 54(2), 393–420. https://doi.org/10.5465/amj.2011.60263120
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 1–12.
Froehlich, C., Reinhardt, L. B., Schreiber, D., & Eberle, L. (2025). Dynamic capabilities for digital transformation in an enterprise business.Benchmarking: An International Journal, 32(5), 1541–1558. https://doi.org/10.1108/BIJ-12-2023-0864
Fu, Y. H., Wang, Q. Y., Wang, Q., & Ma, D. Y. (2024). Construction and application of digital transformation evaluation system for manufacturing enterprises. Science and Technology Management Research, 44(18), 58–69.
Greckhamer, T., Furnari, S., Fiss, P. C., & Aguilera, R. V. (2018). Studying configurations with qualitative comparative analysis: Best practices in strategy and organization research. Strategic Organization, 16(4), 482–495. https://doi.org/10.1177/1476127018786487
Greckhamer, T., & Gur, F. A. (2021). Disentangling combinations and contingencies of generic strategies: A set-theoretic configurational approach. Long Range Planning, 54(2), Article 101951. https://doi.org/10.1016/j.lrp.2019.101951
Gurbaxani, V., & Dunkle, D. (2019). Gearing up for successful digital transformation. MIS Quarterly Executive, 18(3), 209–220. https://doi.org/10.17705/2msqe.00017
Jara, J., Aguirre, E., Morales, M., & Crespo, A. (2023). Digital transformation: A systematic literature review from the theoretical lenses of the TOE framework. Innovar, 34(93), Article e98245. https://doi.org/10.15446/innovar.v34n93.98245
Jing, S., Feng, Y., Yan, J., & Niu, Z. (2021). Evaluation method of lean digitalization level for traditional manufacturing. Science and Technology Management Research, 41(4), 43–52.
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2018). Coming of age digitally. MIT Sloan Management Review. https://sloanreview.mit.edu/projects/coming-of-age-digitally/
Kane, G. C., Palmer, D., Phillips, A. N., & Kiron, D. (2015). Is your business ready for a digital future? MIT Sloan Management Review, 56(4), 37–44.
Li, L. W., Cheng, F., & Huang, Y. H. (2023a). Being vigilant in peach time or passive changes by internal and external difficulties:Antecedent configuration on the digital transformation of High-tech SMEs. Journal of Beijing Union University (Humanities and Social Sciences), 21(1), 92–99.
Li, L., Su, F., Zhang, W., et al. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129–1157. https://doi.org/10.1111/isj.12153
Li, L., Yang, S. L., & Chen, N. (2023b). Antecedent configuration of digital transformation and its performance: Empirical evidence from Chinese manufacturing listed companies. Science & Technology Progress and Policy, 40(16), 32–41.
Li, G., Hou, Y. & Wu, A. (2017). Fourth industrial revolution: Technological drivers, impacts and coping methods. Chinese Geographical Science, 27, 626–637.
Li, X. Y. (2024). Research on the measurement of digital development level and spatial spillover effects of circulation industry – A case study of 11 provinces and cities in the Yangtze river economic belt. Journal of Commercial Economics, 3, 180–183.
Lin, Y., & Zhang, X. J. (2022). Influencing factors at different stages of manufacturing enterprises’ digital transformation – Multiple case studies based on grounded theory. Forum on Science and Technology in China, 6, 123–132+142.
Liu, J. R. (2023). The essence, paths and misconceptions of digital transformation in manufacturing. Review of Industrial Economics, 1, 5–15.
Lv, D. Y., & Zhang, Y. Q. (2022). Research on measuring the development level of digital economy: Take Shanghai as an example. China Price Journal, 4, 20–22.
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57, 339–343. https://doi.org/10.1007/s12599-015-0401-5
Matt, C., Hess, T., Benlian, A., & Wiesbock, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2). https://aisel.aisnet.org/misqe/vol15/iss2/6
Mithas, S., Ramasubbu, N., & Sambamurthy, V. (2011). How information management capability influences firm performance. MIS Quarterly, 35(1), 237–256. https://doi.org/10.2307/23043496
N’Dri, A., & Su, Z. (2024). Successful configurations of technology-organization-environment factors in digital transformation: Evidence from exporting small and medium-sized enterprises in the manufacturing industry. Information & Management, 61(7), Article 104030. https://doi.org/10.1016/j.im.2024.104030
Oliveira, T., & Martins, M. F. (2011). Literature review of information technology adoption models at firm level. The Electronic Journal Information Systems Evaluation, 14(1), 110–121. https://academic-publishing.org/index.php/ejise/article/view/216
PWC. (2022). Digital factory transformation survey 2022. PWC China. https://www.strategyand.pwc.com/cn/zh/reports/2022/digital-factory-transformation-research-report-nov2022.pdf
Ragin, C. C. (1987). The comparative method: Moving beyond qualitative and quantitative strategies. University of California Press.
Ren, L., Liu, J., & Hao, Q. (2024). How digital transformation affects the cost of equity capital: The role of information disclosure quality and stock liquidity. Industrial and Corporate Change, 33(5), 1098–1122. https://doi.org/10.1093/icc/dtad053
Ren, X. M., Jing, H., & Zhang, Y. Y. (2023). Construction of digital transformation capability of manufacturing enterprises: Qualitative meta-analysis based on current research. Sustainability, 15(19), Article 14168. https://doi.org/10.3390/su151914168
Shi, G. D., Wu, G., & Huang, J. J. (2025). Digitalization transformation and ESG performance of manufacturing enterprises – From the ESG segmentation perspective. Statistics and Decision, 41(5), 166–171.
Song, Q., Zhong, Q., & Wen, H. (2022). Industrial digitalisation and enterprise total factor productivity: Evidence from China’s listed manufacturing enterprises. Humanities & Social Sciences Journal of Hainan University, 40(4), 74–84.
Song, Y., Li, Z., Cheng, X., Liu, J., & Wang, S. (2021). Research on the path of digital transformation of manufacturing industry in Hebei province during the “14th Five-Year Plan” period from the perspective of internationalization. Management & Technology of SME, 12, 56–59+124.
Tong, Y. (2022). Research on the influencing factors of manufacturing digital transformation. Journal of Technical Economics & Management, 3, 124–128.
Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). Processes of technological innovation. Lexington Books.
Toscano-Jara, J., Loza-Aguirre, E., Segura, M., & Franco-Crespo, A. (2024). Digital transformation: A systematic literature review from the theoretical lenses of the TOE Framework. Innovar, 34(93), Article e98245. https://doi.org/10.15446/innovar.v34n93.98245
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: a review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Wan, L., Wang, S. Q., Chen, X., & Du, L. M. (2020). Research on construction and application of evaluation index system for digital transformation of manufacturing. Science and Technology Management Research, 40(13), 142–148.
Wang, J. F., Qiu, J., & Zhang, Y. Y. (2023). The improvement path of coupling coordination degree of the multi-factor-driven regional innovation chain: An fsQCA analysis based on TOE framework. Science & Technology Progress and Policy, 40(4), 34–44.
Wang, S. Y., & Liu, B. C. (2023). Regional differences and dynamic evolution of the digital transformation of manufacturing enterprises. Journal of Statistics and Information, 38(7), 32–45.
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
Wei, G. C., Chen, Y. T., & Wang, H. H. (2021). Factors influencing digital transformation of retail enterprises based on grounded theory. Journal of Commercial Economics, (19), 41–43.
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
Wu, F., Chang, X., & Ren, X. Y. (2021). Government-driven innovation: Fiscal technology expenditure and enterprise digital transformation. Public Finance Research, 1, 102–115.
Wu, L. D., Li, S. J., Wang, H., & Cui, X. (2025). Research on digital transformation progression mechanism of manufacturing enterprises based on “corporate governance-organizational capability” configuration model. Nankai Business Review. http://kns.cnki.net/kcms/detail/12.1288.F.20230911.1916.004.html
Xu, L., Zhou, J. Y., & Liu, B. (2023). Influencing factors and implementation path of enterprise digital transformation. Finance and Accounting Monthly, 44(10), 146–152.
Yang, J., & Ye, C. (2021). The effects and influencing factors of the digital transformation of the manufacturing industry. Review of Financial & Technological Economics, 4, 79–93.
Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). Research commentary – the new organizing logic of digital innovation: An agenda for information systems research. Information Systems Research, 21(4), 724–735. https://doi.org/10.1287/isre.1100.0322
Yoo, Y., Lyytinen, K., & Yang, H. (2005). The role of standards in innovation and diffusion of broadband mobile services: The case of South Korea. The Journal of Strategic Information Systems, 14(3), 323–353. https://doi.org/10.1016/j.jsis.2005.07.007
Zhang, J. K., Chen, J., & Xing, W. (2025a). The path and driving effects of digital transformation of China’s manufacturing industry: A dynamic QCA analysis based on the technological economic paradigm. Soft Science, 39(2), 32–40.
Zhang, P., Yang, D. D., & Liu, X. (2025b). Digital transformation of manufacturing enterprises: An integrated analytic framework and research outlook. Journal of Management, 38(01), 114–129.
Zhang, P., Zhou, E. Y., & Liu, Q. L. (2022a). An empirical study on the level of digitization transformation of equipment manufacturing enterprises: Based on the survey data of Shaanxi province. Science & Technology Progress and Policy, 39(7), 64–72.
Zhang, S. B., & Zhang, Z. X. (2023). Evaluation of doing business in Chinese cities 2023. http://jszy.whu.edu.cn/zhang/zh_CN/zzcg/416874/content/6027.htm#zzcg
Zhang, W., & Wang, S. (2022). Research on the heterogeneous economic effects of digital investment in China’s manufacturing industry. Reform of Economic System, 1, 103–110.
Zhang, X., Xu, Y. Y., & Ma, L. (2022b). The configuration effect of antecedents of digital transformation in small and medium-sized enterprises. Review of Economy and Management, 38(1), 92–102.
Zhao, C. H., & Fan, H. J. (2023). Construction of enterprise digital transformation evaluation system, measurement of progress, and paths for improvement. Communication of Finance and Accounting, 6, 9–17.
Zhen, H. X., Wang, X., & Fang, H. X. (2023). Administrative protection of intellectual property rights and corporate digital transformation. Economic Research Journal, 58(11), 62–79.
Zou, L., Li, W., Wu, H., Liu, J., & Gao, P. (2024). Measuring corporate digital transformation: Methodology, indicators and applications. Sustainability, 16(10), Article 4087. https://doi.org/10.3390/su16104087
Zhu, K., Kraemer, K. L., & Xu, S. (2006). The process of innovation assimilation by firms in different countries: A technology diffusion perspective on e-business. Management Science, 52(10), 1557–1576. https://doi.org/10.1287/mnsc.1050.0487
View article in other formats
Published
Issue
Section
Copyright
Copyright (c) 2025 The Author(s). Published by Vilnius Gediminas Technical University.
License

This work is licensed under a Creative Commons Attribution 4.0 International License.