Abstract:With the acceleration of the digitization process in the construction industry, various digital technologies are widely implemented in the implementation of engineering projects. However, project teams lack a correct assessment of their digital capability and blindly choose innovative strategies, resulting in frequent poor project performance. Based on the resource-based view and capability theory, uses the fsQCA method to explore the matching relationship between digital capability and innovation strategy and then puts forward the path to achieve high project performance. The results show that: (1) there is a “multiple concurrency” effect between digital capability and innovation strategy, and the paths are divided into digital capability-driven, innovation strategy-driven, and digital capability-innovation strategy synergy; (2) Digital perception capability, model innovation, and service innovation have universal effects on improving project performance. The findings help to reveal the synergistic mechanism of digital capability and innovation strategy to improve project performance under the background of digital transformation of the construction industry and provide path selection and decision support for digital transformation of engineering project management.