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This study investigates firms' innovation behaviour under environmental change. Therefore, it examines the effect of trade disputes on corporate technological innovation and how product market competition moderates this relationship.

This research tests the hypotheses using the fixed effects model based on panel data of publicly listed enterprises in China from 2007–2020.

The empirical results validate the positive association between trade disputes and corporate research and development (R&D) intensity as well as the U-shaped relationship between trade disputes and radical innovation. Additionally, the moderating effect of product market competition is verified: a concentrated market with less competition flattens the U-shaped curve of radical innovation induced by trade disputes; as the market becomes more concentrated and less competitive, the U-shaped relationship eventually turns into an inverted U.

First, this study contributes to the corporate innovation and trade dispute literature by expanding the environmental antecedents of technological innovation and the firm-level consequences of trade disputes. Second, this study enriches the theoretical framework of the environment–innovation link through an integrated perspective of contingency theory and dynamic capabilities view. Third, instead of the traditional linear mindset which had led to contradictory results, this study explores a curvilinear effect in the environment–innovation relationship.

Under extensive pressure from normal market competition, frequent technological change and extreme exogenous shock, firms are facing severe challenge nowadays. How to withstand discontinuous crises and respond to normal risks through improving resilience (RE) is an important question worth researching. Thus, drawing on the strategic entrepreneurship theory, the purpose of this study is exploring the relationship between entrepreneurial orientation (EO) and RE, and combining digitization to discuss the role of digital business capability (DBC), digital business model innovation (DBMI) and environmental hostility (EH).

Based on survey data from 203 Chinese firms, using the methods of linear regression and bootstrap to test our hypothesis. Furthermore, fuzzy-set qualitative comparative analysis (FsQCA) is used to identify previously unknown combinations which lead to strong/weak RE in digital context.

First, EO positively influenced DBC and RE. Second, DBMI promoted RE, DBC and DBMI served as sequential mediators that linked EO and RE. Third, EH positively moderated the effects of EO on RE. Further the study revealed that different configuration of DBMI and dimensions of EO and DBC can explain RE.

The study explains mechanism of RE from perspective of digitization. The conclusion is good for further consolidating strategic entrepreneurship theory, and providing a new frame for firms to build the ability of antifragile.