This paper examines how SMEs can use digital tools to strengthen innovation capacity. Departing from traditional single-factor or single-case analyses, it draws on data from 105 listed Chinese “Little Giant” firms, using a comparative configurational approach to explore how technological, organizational, and external factors shape innovation. Our main findings are threefold:(1) No single factor alone explains innovation performance differences. (2) We identify three effective configurations for high innovation: internal capability-centered, technology-led, and policy-supported.(3)A configuration marked by rigid routines and low adaptability is associated with weaker innovation. This study enriches digital transformation literature by highlighting strategic resource combination importance for SMEs, and offers practical implications for “Little Giant” firms to leverage digitalization for better innovation.

Shiwei Liu, Jizhong Wu. Configurational Paths to Enhancing Innovation Performance in SRDI Enterprises under Digital Transformation. Academic Journal of Business & Management (2026), Vol. 8, Issue 5: 49-54. https://doi.org/10.25236/AJBM.2026.080507.

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