Abstract: “Specialized, Refined, Distinctive, and Innovative” (SRDI) enterprises serves as vital impetus for the rapid development of new quality productive forces, and vital engines for high-quality urban development. How to stimulate the emergence of more SRDI enterprises through the optimization of urban business environments is a theoretical issue that urgently needs exploration. An urban business environment system is constructed with the TOE framework, and with a sample of 632 listed SMEs from 82 cities in China, the dynamic QCA method is employed to explore the multiple configurational paths through which urban business environments drive SMEs towards SRDI across both temporal and spatial dimensions. The research finds that: (1) Individual business environment elements do not constitute necessary conditions for a high level of “SRDI”, but the role of the digitalization condition cannot be ignored. (2) There are five differentiated paths stimulating SMEs towards SRDI, which can be summarized as “environment-led innovation type” and “environment-led digitalization type”. (3) The market environment and government affairs environment are universally core elements; innovation capability and digitalization level are selective elements; the elements within the business environment exhibit obvious substitution and complementary effects. (4) In the temporal dimension, the consistency of the “SRDI” utility for each configurational path declined during 2019-2020; in the spatial dimension, the coverage of one path showed distributional differences. To construct a business environment that propels SMEs towards SRDI, a “government + enterprise” dual-drive approach should be adhered to. Innovation capability should be continuously enhanced. Enterprises should be guided in digital-intelligent development. The coordinated development of the business environment as a “whole+parts” should be promoted.

Key words: specialized, refined, distinctive, and innovative, business environment, TOE, QCA, configuration