The development of digital economy drives enterprises to make digital transformation, reconstruct and innovate business models and value creation models. Enterprises should apply digital technology to build digital capabilities, improve environmental adaptability, meet individual needs, and enhance collaboration efficiency, so as to maintain a sustainable competitive advantage. In addition, data is an important resource for the formation of enterprise''s core competitiveness in the digital economy era, and its security will also affect the relationship between digital capability and enterprise performance. From the perspective of enterprise performance, based on the theory of dynamic capability and value co-creation, this paper makes an empirical analysis of digitalization of 550 small and medium-sized manufacturing enterprises with the method of layer-by-layer regression, and tests the influence of digitalization capability on enterprise performance. The results show that digital manufacturing capability and digital service capability have a positive impact on enterprise performance. Data security has a negative moderating effect between digital manufacturing capability and enterprise performance, and a positive moderating effect between digital service capability and enterprise performance. Data security has a positive moderating effect between value co-creation and enterprise performance. Co-creation of value plays a partial intermediary role between digital capability and enterprise performance. Based on the above empirical results, this paper provides theoretical support and relevant suggestions for the digital transformation of small and medium-sized manufacturing enterprises.