How digital economy industry network embedding drives digital-real integration in construction firms: a dynamic capability and innovation diffusion perspective

Purpose This study investigates the impact of digital economy industrial network embedding on digital-real integration in construction firms, aiming to uncover how structural and relational embedding, along with industrial element diffusion, influence digital-real integration across different life cycle stages. Design/methodology/approach Using digital technology patent data, the study constructs a digital economy industrial network and develops a micro-level digital-real integration measurement indicator as the dependent variable. Structural equation modeling is employed to analyze the direct effects of structural embedding and relational embedding on digital-real integration, as well as the moderating role of industrial element diffusion. Firms are categorized into growth, maturity, and decline stages to examine the varying impacts of network embedding on digital-real integration. Findings The results show that both structural and relational embedding significantly enhance digital-real integration across all life cycle stages, with relational embedding having a particularly strong effect during the decline stage. Industrial element diffusion weakens the positive impact of relational embedding but does not significantly moderate structural embedding. An inverted U-shaped relationship is observed between the industry element ratio and digital-real integration, with firms in the decline stage achieving higher digital-real integration levels at lower industry element ratio values. Research limitations/implications The study is limited to listed construction firms in China, and future research could expand the sample to include small and medium-sized enterprises and firms from different geographic regions to enhance generalizability. Practical implications The findings offer practical guidance for construction firms to optimize their industrial network configurations, particularly during the decline stage, by strategically prioritizing sectors like Computer Component Manufacturing to enhance digital-real integration level. Social implications This study highlights the importance of digital economy industry network embedding in driving digital-real integration in construction firms, offering insights for enhancing industry-wide digital transformation and resource optimization. It also underscores the role of policy support and collaborative innovation in fostering sustainable development and reducing the digital divide within the construction industry. Originality/value This study introduces a novel micro-level digital-real integration measurement method. By constructing a digital economy industry network based on digital technology patent associations, the study not only delineates the intricate relationships among industries but also provides an in-depth exploration of how network embedding within the digital economy influences the process of digital-real integration.