Abstract:    With the acceleration of the construction process of digital China, the application of digital technologies such as big data and artificial intelligence has been continuously strengthened in various regions of China. The digital environment formed by this has brought new opportunities for the business model innovation of manufacturing enterprises. In order to truly obtain the innovation effect of digital technology and quickly adapt to the new situation of digital development, it has become the key for manufacturing enterprises to rapidly improve their own dynamic capability. Furthermore, any innovation covers at least two-level phenomena of innovation subject and environment, that is, the research perspective of antecedents of business model innovation needs to be expanded to multiple levels. However, few studies have researched the relationship between digitalization level and business model innovation from the cross-level perspective yet. And researchers have not explored the influence of dynamic capability on the relationship, and the research conclusions lack the support of empirical analysis. Therefore, the purpose of this paper is to examine the relationship between regional digitalization level and business model innovation, and the cross-level moderating effect of dynamic capability.
    To reveal the influence mechanism of digitalization level on manufacturing enterprises′ business model innovation, this paper constructs a cross-level theoretical model of the impact of digitalization level and dynamic capability on business model innovation based on the dynamic capability theory and the iceberg theory of business model and use the hieratical linear model and the 415 manufacturing enterprises in 59 cities to conduct the empirical analysis. The results show that: digitalization level has a positive influence on manufacturing enterprises′ business model innovation. Absorptive capability, adaptive capability and innovation capability can directly boost business model innovation. Absorptive capability, adaptive capability and innovation capability positively regulate the influence of digitalization level on business model innovation in manufacturing enterprises. In addition, typical case is selected to verify the above empirical results. The case analysis results provide evidence for the conclusions that regional digitalization level and dynamic capability are important antecedent variables of manufacturing enterprises′ business model innovation, and dynamic capability is an important driving force of business model innovation under digital environment.
    The contributions of this paper include the following aspects. First, this paper confirms that the digitalization level is an antecedent variable of business model innovation with significant predictive power, which expands the research findings on business model innovation in the digital environment. Second, this paper further expands the research scope of the iceberg theory of business model and provides theoretical guidance for enterprises′ business model innovation in the new digital environment. Third, dynamic capability is incorporated into the research framework of regional digitalization level and business model innovation, and the cross-level moderating effect of dynamic capability in this relationship is discussed, which enriches the research results of antecedents of business model innovation.
    Furthermore, based on the research results, this paper proposes the following management implications: first, local governments should strengthen the top-level design and system planning of digital development, so as to promote the deep integration of digitalization and manufacturing. Second, local governments should pay attention to the coordinated development of soft and hard infrastructure construction to provide basic guarantee for regional innovation activities. Third, manufacturing enterprises should conform to the trend of digital development and strengthen the endogenous dynamic capability, so as to provide support for the realization of business model innovation, such as establishing a flexible and capable digital team, introducing and cultivating digital talents, and increasing R&D investment.

Key words:  business model innovation, digitalization level, dynamic capability, manufacturing enterprise