Abstract:    This paper analyzed the internal mechanism of digital transformation in enterprise management from the micro-level and organizational innovation perspective, which holds significant supporting value for policymaking at the macro level. Drawing upon six years (2015-2020) of tracking survey data from 3109 enterprises within the first national demonstration zone of China for deep integration of informatization and industrialization, this study explored and developed the enterprises′ digital capabilities from an organizational innovation perspective and examined the impact of leading enterprises′ demonstration effects on promoting digital transformation in enterprise management. The study findings are as follows: (1) Enterprises should employ collaborative strategies that integrate new knowledge while leveraging existing knowledge to drive digital transformation; (2) The demonstration effect of leading enterprises reduces operational risks and strategic uncertainties for other firms, thereby accelerating local digital transformation efforts; (3) Heterogeneous analysis revealed varying impacts of the demonstration effect across industries and company scales. This paper has provided empirical evidence and decision support for enterprises to formulate digital management decisions and for governments to formulate industrial digitization policies, thus offering important insights for further promoting digital transformation in enterprise management nationwide. At the same time, it has extended the theory of organizational innovation to the field of digital reform, thus providing a new theoretical perspective for research on the digital economy and organizational innovation.

Key words: digital transformation of enterprise management, integration of “informatization and industrialization”, organizational innovation, demonstration effect of leading enterprise