Digital transformation and organizational resilience: knowledge mechanisms through network diversity and human capital

The rapid adoption of digital technologies has transformed the competitive landscape. However, the extent to which digital transformation contributes to organizational resilience capability and performance remains unclear. To address this gap, this study employs data from Chinese firms to examine the role of digital transformation in shaping organizational resilience capability and performance. The empirical results demonstrate that digital transformation significantly and positively influences organizational resilience capability and performance. The results also indicate that digital transformation complements network diversity and human capital in building organizational resilience capability, implying that location and internalization advantages are key factors enabling firms to withstand adverse conditions. Furthermore, the analysis shows that digital transformation becomes particularly valuable when geopolitical uncertainty is elevated. The results are further validated through subsidiary type analysis and crisis period effects. The findings provide important implications for managers seeking to enhance organizational resilience capability and performance through strategic digital transformation amid growing business uncertainty.