{"title":"Digital transformation and firm performance in manufacturing: The role of servitization and corporate entrepreneurship","authors":"Moonju Nam, Youngha Chang","doi":"10.1016/j.jik.2026.101115","DOIUrl":null,"url":null,"abstract":"This study examines how digital transformation translates into firm performance in manufacturing by addressing the digital transformation paradox through interdependent knowledge mechanisms. Drawing on the knowledge-based view and integrating perspectives on knowledge management and absorptive capacity, the study proposes and tests a sequential pathway in which digital transformation enables servitization, servitization fosters corporate entrepreneurship, and corporate entrepreneurship ultimately drives firm performance. Survey data from 130 South Korean manufacturing firms were analyzed using PLS-SEM, controlling for knowledge and technology intensity, research and development intensity, firm size, firm age, and geographic location. Results show that digital transformation significantly enhances servitization, servitization significantly promotes corporate entrepreneurship, and corporate entrepreneurship significantly improves firm performance. By contrast, the direct links between digital transformation and firm performance, and between servitization and firm performance, are not significant; only the sequential pathway linking digital transformation to firm performance through servitization and corporate entrepreneurship is supported. This study contributes to theory by clarifying the digital transformation paradox through a layered knowledge-based framework that frames digital transformation as a knowledge infrastructure, servitization as a knowledge interface rather than a direct performance driver, and corporate entrepreneurship as a knowledge-enactment mechanism linking digital transformation to firm performance. For managers, the results underscore the need to strategically orchestrate digital transformation, servitization, and corporate entrepreneurship as interlinked stages of a knowledge-based process to translate digital investments into sustained performance improvements in manufacturing.","PeriodicalId":46792,"journal":{"name":"Journal of Innovation & Knowledge","volume":"11 1","pages":""},"PeriodicalIF":14.0000,"publicationDate":"2026-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Innovation & Knowledge","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1016/j.jik.2026.101115","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This study examines how digital transformation translates into firm performance in manufacturing by addressing the digital transformation paradox through interdependent knowledge mechanisms. Drawing on the knowledge-based view and integrating perspectives on knowledge management and absorptive capacity, the study proposes and tests a sequential pathway in which digital transformation enables servitization, servitization fosters corporate entrepreneurship, and corporate entrepreneurship ultimately drives firm performance. Survey data from 130 South Korean manufacturing firms were analyzed using PLS-SEM, controlling for knowledge and technology intensity, research and development intensity, firm size, firm age, and geographic location. Results show that digital transformation significantly enhances servitization, servitization significantly promotes corporate entrepreneurship, and corporate entrepreneurship significantly improves firm performance. By contrast, the direct links between digital transformation and firm performance, and between servitization and firm performance, are not significant; only the sequential pathway linking digital transformation to firm performance through servitization and corporate entrepreneurship is supported. This study contributes to theory by clarifying the digital transformation paradox through a layered knowledge-based framework that frames digital transformation as a knowledge infrastructure, servitization as a knowledge interface rather than a direct performance driver, and corporate entrepreneurship as a knowledge-enactment mechanism linking digital transformation to firm performance. For managers, the results underscore the need to strategically orchestrate digital transformation, servitization, and corporate entrepreneurship as interlinked stages of a knowledge-based process to translate digital investments into sustained performance improvements in manufacturing.
期刊介绍:
The Journal of Innovation and Knowledge (JIK) explores how innovation drives knowledge creation and vice versa, emphasizing that not all innovation leads to knowledge, but enduring innovation across diverse fields fosters theory and knowledge. JIK invites papers on innovations enhancing or generating knowledge, covering innovation processes, structures, outcomes, and behaviors at various levels. Articles in JIK examine knowledge-related changes promoting innovation for societal best practices.
JIK serves as a platform for high-quality studies undergoing double-blind peer review, ensuring global dissemination to scholars, practitioners, and policymakers who recognize innovation and knowledge as economic drivers. It publishes theoretical articles, empirical studies, case studies, reviews, and other content, addressing current trends and emerging topics in innovation and knowledge. The journal welcomes suggestions for special issues and encourages articles to showcase contextual differences and lessons for a broad audience.
In essence, JIK is an interdisciplinary journal dedicated to advancing theoretical and practical innovations and knowledge across multiple fields, including Economics, Business and Management, Engineering, Science, and Education.