Abstract: Achieving firms’ digital transformation success during coopetition has become the focus of academia and industry. Based on dynamic capability theory, we introduce three dimensions of coopetition capabilities (Coopetition Mindset (CM), Analytical Acumen (AA) and Executional Skills (ES)) as key drivers in firms’ digital transformation performance (DTP), and further discuss the roles of the digital atmosphere of coopetition (DAC) and the digital technology embedding adaptability (DTEA). Through analyzing the questionnaire data of 196 strategic emerging industries in Southwest China, we find that CM, AA and ES positively impact DTP. The DAC enhances the positive effect of CM on DTP, while the DTEA enhances the positive impact of ES on DTP; Integrating the DAC and the DTEA enhances the positive effect of CM, AA and ES on DTP respectively. Research conclusions complement the theoretical framework and boundary conditions of the impact of coopetition capabilities on digital transformation, as well as provide useful insights for managers on how to pursue better firms’ digital transformation performance in coopetition.