South Asian Journal of Social Studies and Economics

Under the Fifth Industrial Revolution, digital technologies are deeply integrating into industry. Major industrial nations have adopted development strategies. These strategies center on digital-physical integration. China is known as the "world factory." Its manufacturing sector faces challenges. It is large but not strong. It is comprehensive but not optimal. Digital transformation is urgently needed. It can overcome development bottlenecks. It can foster new competitive advantages. This study draws on the resource-based view and dynamic capabilities theory. It systematically examines how digital transformation drives new-quality productive forces in manufacturing firms. Empirical analysis reveals the following findings:(1) Drivers of digital transformation include internal and external factors. A linked internal-external driving system is required. It enables dual-directional momentum. (2) Digital transformation reshapes value creation in manufacturing. It does so through three paths: technological innovation, model innovation, and managerial innovation. Based on these findings, a stepwise transformation path model is proposed. A differentiated policy intervention framework is also proposed. These provide theoretical support and practical guidance. They support the strategic transition from "Made in China" to "Intelligent Manufacturing in China."