Mining the Collaborative Networks: A Machine Learning-Based Approach to Firm Innovation in the Digital Transformation Era

TL;DR

This study explores how collaboration networks and digital transformation together influence firm innovation, using machine learning to uncover complex patterns.

Contribution

The paper introduces a machine learning-based framework to analyze the nonlinear interplay between collaborative networks and digital transformation.

Findings

Innovation outcomes depend on joint configurations of network positions and digital transformation, not single attributes.

Structural holes in networks are the most influential determinant of innovation performance.

Digital transformation interacts with network positions to create multiple paths to high or low innovation.

Abstract

Understanding how collaborative network structures and digital transformation jointly shape firm innovation has become a critical issue amid rapid technological change. Drawing on social network theory and a configurational perspective, this study investigates the nonlinear and interactive effects of collaborative network characteristics and digital transformation on firm innovation performance. Using patent data from Chinese listed manufacturing firms for the period between 2012 and 2022, inter-firm technological collaboration networks are constructed based on co-patenting relationships. A Classification and Regression Tree (CART) model is employed to uncover complex configurational patterns, complemented by regression-based robustness tests. The results reveal that innovation outcomes are not driven by single network attributes but by joint configurations of structural hole positions, centrality measures, and digital transformation. Among all factors, structural holes emerge as the most influential determinant. The findings further show that digital transformation interacts with network positions, generating multiple paths leading to high or low innovation performance. Model comparisons demonstrate that the CART approach outperforms traditional linear models in capturing nonlinear effects. This study contributes to the literature by highlighting the configurational logic of collaborative innovation and providing a machine learning-based framework for analyzing network–digital transformation interplay.

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