Digital technology is fundamentally revolutionizing established economic paradigms and hastening market evolution. For manufacturing enterprises, the integration of digital technology through M&A has emerged as a potent strategy for transformation and competitive enhancement. Despite its prevalence, there remains a dearth of theoretically coherent and systematic explanations for this trend. This study examines listed manufacturing companies in China to investigate the interplay between digital strategy cognition, M&A and transformation. Our research reveals that a robust digital strategy cognition correlates with a heightened propensity to adopt digital technology via M&A. Digital M&A acts as a direct catalyst for digital metamorphosis in manufacturing entities, serving as a pivotal avenue for organizational advancement. Additionally, prior M&A experiences are found to positively modulate the efficacy of digital M&A in facilitating digital transformation. However, these relationships do not hold the same significance within state-owned enterprises. The pursuit of digital technology through M&A by manufacturing enterprises represents a strategic process of capability enhancement and transformation. This approach enables rapid assimilation of digital technologies, bridging the chasm in digital transformation and upgrading. Our findings contribute to bridging the theoretical lacuna in domains such as strategic M&A and digital transformation, while also offering managerial insights for corporate practice.
