Digital transformation serves as a critical catalyst for innovation, enabling enterprises to enhance their adaptability and competitiveness in the digital economy. This study investigates the impact of corporate digital transformation on innovation vi...
Digital transformation serves as a critical catalyst for innovation, enabling enterprises to enhance their adaptability and competitiveness in the digital economy. This study investigates the impact of corporate digital transformation on innovation vitality using a dataset of Chinese A-share listed companies from 2007 to 2020. Specifically, it examines how digital transformation influences both substantive and symbolic innovation vitality while considering the moderating role of environmental policy uncertainty. The findings demonstrate that digital transformation significantly enhances innovation vitality, exerting a stronger influence on substantive innovation than symbolic innovation. Substantive innovation, characterized by advancements in core technologies and products, benefits from the integration of digital technologies such as big data, artificial intelligence, and blockchain into enterprise operations. Symbolic innovation, which focuses on improving brand image and market position, is also positively impacted, albeit to a lesser extent. Environmental policy uncertainty further amplifies the effects of digital transformation, creating opportunities for enterprises to leverage digital tools in navigating dynamic regulatory environments. Under high levels of uncertainty, digital transformation enhances substantive innovation by fostering organizational resilience and optimizing resource allocation. Conversely, the same uncertainty weakens its influence on symbolic innovation, as firms prioritize tangible outcomes to mitigate risks. These dynamic highlights the nuanced interplay between digital capabilities and policy environments, underscoring the adaptability required for sustained innovation. This study contributes to the theoretical understanding of how digital transformation interacts with environmental uncertainties to influence innovation vitality. It underscores the dual pathways substantive and symbolic through which digital transformation drives enterprise competitiveness. Additionally, the findings offer practical implications for managers and policymakers by emphasizing the importance of cultivating digital capabilities and aligning them with strategic objectives to optimize both types of innovation. By addressing the role of environmental policy uncertainty, this research provides valuable insights for developing effective digital transformation strategies, particularly in uncertain and volatile contexts, thereby supporting enterprises in achieving sustainable growth.