How does institutional theory illuminate the influence of the digital economy on R&D networks?

Purpose - The purpose of this research is to explore how an innovation organization's orientation toward the digital economy influences its position within R&D networks. By using institutional theory, the study aims to forecast market changes and understand how organizations can navigate the digital economy to secure essential resources and minimize dependencies. Design/methodology/approach - This study employs a longitudinal panel dataset with 11,763 entries from 1995 to 2018, covering strategic emerging industries in China to analyze the impact of digital economy orientation on R&D networks. Utilizing advanced statistical models, it assesses the role of the legal environment as a moderator. This methodological approach facilitates a robust examination of the nexus between digital orientation and network dynamics within the context of institutional theory. Findings - The study reveals that an organization's digital economy orientation enhances its centrality in R&D networks but reduces its control over structural holes. The legal environment negatively moderates the impact of digital economy orientation on network centrality, while positively influencing the relationship with network structural holes. These findings offer new insights into how institutional forces shape the strategic positioning of organizations in R&D collaborations. Originality/value - This research offers a fresh perspective on the digital economy's impact on R&D networks, particularly in the Industry-University-Research (IUR) context. It extends the discourse by integrating institutional theory to elucidate the adaptation of R&D networks in the digital era. By identifying the legal environment as a moderator, the study provides a nuanced understanding of the strategic alignment within networks influenced by digital advancements. The unique focus on China's R&D networks presents a valuable contribution to the global discussion on digital integration and innovation ecosystems, highlighting the intersection of policy, academia, and industry in shaping research and development trajectories.