Abstract:Public crisis is critical for firm survival and growth. Drawing on the dynamic capability perspective, this study examines the relationships among firm digitalization, strategic flexibility, and public crisis response strategy under the context of major public health emergency. Empirical evidence from 749 Chinese firms shows that strategic flexibility, in terms of resource flexibility and coordination flexibility, helps firms respond effectively to the public crisis. Further, the digitalization significantly enhances firm strategic flexibility. Moreover, the digitalization mediates the relationship between strategic flexibility and public crisis response strategy. By extending existing research to the public crisis context, this study not only enriches the dynamic capabilities perspective, but also offers a novel explanation for the role of digitalization in predicting firm performance. The findings can guide firms not only to survive the public crisis, but also to turn the crisis into opportunities.