Abstract:Theoretical foundations for this study include social networking theory, dynamic capability theory, and an empirical investigation of the mechanisms of enterprise network embedding and digital capability on open innovation. For starters, in the digital economy, enterprise network embedding and digital capabilities have a significant positive impact on open innovation. Second, the embedded sub-dimensional relational network has a significant positive impact on the three-dimension digital capabilities'' digital perception capacity, digital operating capacity, and digital resource synergy capacity; the embedding of the network''s sub-dimensional structural network on the digitalization capacity has a significant positive impact on the capacity for digital perceptions and digital operations, but the impact on digital resource integration is negligible. Third, digital capabilities have an intermediate effect on the relationship between network embedding and open innovation, as well as providing a path mechanism for network embedded digital capability open innovation.