Purpose This study aims to analyze the interplay and developmental dynamics of internal resources and capabilities within complex external environments shaped by market and technological interactions. It also seeks to clarify the dynamic interplay and dominant roles of market and technology, and to delineate the logical relationship between resource-capability configurations and corporate strategy. By adopting a resource orchestration and dynamic capabilities perspective, this research uncovers the intrinsic mechanisms, strategic logic and pathways of enterprise digital transformation, thereby offering theoretical and practical guidance for more organizations embarking on digital transformation. Design/methodology/approach This study uses a single-case research methodology combined with grounded theory to conduct a longitudinal analysis of century innovation, a leading traditional printing enterprise in China, as it undergoes its digital transformation journey. This paper has been refined for readability with the assistance of AI-powered language enhancement tools. Findings First, the digital transformation of enterprises follows a logical path of “driving context–strategic planning–digital transformation”, progressing through four developmental stages: digital element sedimentation, digital-intelligent formation, convergent network integration and smart engine leap. Second, technology and market forces operate as dual driving mechanisms, exerting a bidirectional push-and-pull influence that alternates in dominance. Specifically, market-driven stages prioritize resource mobilization, while technology-driven stages emphasize capability enhancement. Third, core to this process are resource orchestration and dynamic capabilities, which achieve a dynamic reciprocal meshing transmission. Specifically, resource orchestration evolves through “Fission-Incubation – Graft-Driven Growth – Synergistic-Coupling – Intelli-Control empowerment”, meshing with and concurrently activating dynamic capabilities of “Recognition and adoption – Learning and Internalization – Digital collaboration – Flexible extension”. Originality/value This study develops a “context–strategy–outcome” framework to elucidate the logic of enterprise digital transformation, uncovering the internal mechanisms, strategic logic and pathway processes driven by enterprise strategy. It articulates the bidirectional push–pull and alternating dominance of market and technology as external drivers, forming a “primary driver transition” mechanism. In addition, it clarifies resources and capabilities as core strategic elements, exhibiting meshing transmission and dynamic matching with “stage-coexistent” and “role-switching” characteristics – resource configuration dominates in market-driven phases, while capability evolution leads in technology-driven phases – offering a novel perspective on the gradual digital transformation of traditional enterprises.
Zhu et al. (Mon,) studied this question.