In the context of Open innovation, it has become an important way for manufacturing enterprises to use knowledge network embedding (KNE) to achieve intelligent transformation (IT). This study combines the theory of absorptive capacity (AC) and constructs a chain mediation model of “KNE-PAC (potential absorptive capacity)-AAC (actual absorptive capacity)-IT” based on the logical chain of “resources-capabilities-results” to explore the internal mechanism of KNE. 208 manufacturing enterprises are used as research samples. The empirical results based on hierarchical regression analysis and Bootstrap method indicate that(1) KNE positively affects IT; (2) PAC plays a complete mediating role between KNE and IT; (3) AAC does not have a mediating effect between KNE and IT; (4) PAC and AAC play a chain mediating role of KNE on IT. This study expands the research on the impact of KNE on IT, promotes the theoretical exploration of AC on IT, and provides practical reference for manufacturing enterprises to achieve IT in the era of open innovation.