This investigation selects Chinese publicly listed firms on A-shares from 2016 to 2021 as the analytical sample to empirically study the effect and mechanism of digital environment for commercials optimization on the new productive powers of entities. This investigation finds that the refinement of the digital environment for commercials has a positive impact on the new productive powers of entities. The mechanism test indicates that the refinement of the digital environment for commercials can facilitate the improvement of the new productive powers of entities by enhancing market competition and facilitating the digital restructuring of entities. The heterogeneity analysis demonstrates that the positive effect of the digital environment for commercials on the new productive powers of entities is more salient in entities in central-western China, technology-intensive entities, and entities in the growth stage. Further analysis utilizing the fsQCA method indicates that no single element of the digital environment for commercials constitutes a requirement for high commercial entity new productive force, and there are four types of digital environment for commercials element configurations that can generate high commercial entity new productive powers.
