How does digital transformation improve energy efficiency through platformization? The case of a textile company

Purpose – This research aims to propose a process framework on how digital transformation (DT) improves energy efficiency (EE) in manufacturing firms, with a particular focus on the underlying mechanisms and processes within the textile printing and dyeing industry. Design/methodology/approach – A single-case study design is adopted to enable an in-depth investigation of an under-researched phenomenon in which DT improves EE through platformization. Data were collected through semi-structured interviews, on-site observations, and archival records in a textile company in China. An iterative coding process was applied, combining grounded theory with literature-based constructs to analyze external and internal drivers, production process transformation, platformization, and outcomes related to EE. Findings – The findings of this paper are as follows: (1) external drivers, such as global competitiveness and local government energy regulations, together with internal drivers, including platformization for high-quality and cost-effective production and the transition to a platform-based service provider, jointly drive the adoption of DT. (2) DT improves EE through differentiated product standards, real-time energy monitoring, and decision-making transitions from reliance on experiential knowledge to an integration of experience and big data. (3) Platformization integrates technical and market innovations as a component of DT process for EE improvement. (4) The impact of DT on EE follows a generally linear upward trajectory, characterized by initial gradual gain, a temporary decline, and ultimately significant positive gain, although this pattern requires further statistical validation. Originality/value – The study contributes to EE literature by proposing an integrated framework linking DT, platformization and EE. It redefines platformization by incorporating both technical and market dimensions, while simultaneously integrating internal and external organizational dynamics. Practically, we are the first to identify the moderating effect of the human–machine integration level in the relationship between DT and EE, highlighting the essential role of human–machine collaboration in the textile printing and dyeing industry.