Facilitating ambidextrous innovation through digitalisation? Evidence from Chinese A-share listed companies
Bo Song, Linman Shi, Hongda Xu, Mengting HuPurpose
This study aims to examine whether digital transformation promotes exploratory and exploitative innovation as well as their balanced development, and to investigate the mechanisms through which digital transformation affects firms’ ambidextrous innovation.
Design/methodology/approach
Using firm-year observations of Chinese A-share listed companies from 2013 to 2022, this study empirically examines the effects of digital transformation on exploratory innovation, exploitative innovation and the balance between them, and further investigates the underlying mechanisms and heterogeneous effects.
Findings
Digital transformation significantly promotes both exploratory and exploitative innovation, but its effect is stronger on exploratory innovation, thereby widening the gap between the two innovation modes. Human capital structure, internal control costs and investment decision quality constitute important transmission mechanisms. The imbalance-aggravating effect is more pronounced among non-manufacturing and non-high-tech firms and in regions with weaker institutional environments. A more developed digital environment strengthens the positive effect of digital transformation on exploitative innovation.
Originality/value
This study moves beyond the conventional focus on whether digital transformation promotes innovation by adopting a balance-oriented perspective on organizational ambidexterity. It reveals the asymmetric effects of digital transformation on exploratory and exploitative innovation and identifies multiple internal mechanisms through which such imbalance emerges.