THE MECHANISM THROUGH WHICH ENTERPRISE DIGITAL TRANSFORMATION INFLUENCES INDUSTRIAL MODERNIZATION: A MANAGEMENT OPTIMIZATION PERSPECTIVE
Keywords:
enterprise digital transformation, management optimization, organizational capabilities, industrial modernization, industrial upgrading, interfirm diffusion, resource reallocation, global value chainsAbstract
This article examines how enterprise digital transformation may influence industrial modernization via management optimization, treating upgrading as a structural manifestation. Using a targeted, non-systematic, mechanism-oriented synthesis of research on digital transformation, organizational capabilities, resource allocation and value-chain upgrading, the study differentiates digital inputs, managerial conversion, firm capabilities and industry-level outcomes. Management optimization comprises process reconfiguration, decision optimization, resource orchestration and organizational coordination. Firm-level capabilities can gain industry-wide significance through diffusion and learning, competitive selection, interfirm resource reallocation and supply-chain/value-chain coordination. The framework specifies digital maturity, managerial capabilities, organizational complementarity, industry conditions and the institutional environment as boundary conditions, while identifying three potential failures in the conversion and aggregation process. Four propositions integrate these relationships into a multi-level explanation and identify pathways for later empirical testing. The contribution lies in connecting the organizational conversion layer to the firm-to-industry transition rather than attributing industrial upgrading directly to technology adoption.
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Copyright (c) 2026 Shanning Fu, Dzhumabek Dzhailov
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