Abstract:Digital technology is accelerating its penetration into the manufacturing industry. And it is worth exploring whether it can empower manufacturing enterprises to reshape survival advantages. This paper uses Chinese micro enterprise data to study impact and mechanism of digital technology empowerment on survival of manufacturing enterprises. It is found that digital technology empowerment can reshape survival advantages of manufacturing enterprises. On average, for every 1% increase in digital technology empowerment, survival of manufacturing enterprises increases by 53.71%. Heterogeneity test shows that the effect of digital technology empowerment on survival advantages of manufacturing enterprises is more significant in non-state-owned enterprises, specialized enterprises, subsidized enterprises, and large-scale enterprises. At the same time, compared with labor-intensive manufacturing industry, digital technology empowerment have a better effect on survival advantages of capital and technology-intensive manufacturing enterprises. In addition, digital technology empowerment is more conducive to survival advantages of manufacturing enterprises in the eastern region, high-tech innovation region and high intellectual property protection region. Mechanism analysis shows that innovative allocation of production factors is an important mechanism for digital technology empowerment to reshape survival advantage of manufacturing enterprises. And it is mainly achieved through two paths: improving the level of production resource allocation and transaction efficiency. These conclusions provide useful reference for the integration of digital technology and real economy, the improvement of new quality productivity, and the high-quality development of manufacturing industry.