How managers’ digital literacy promotes ambidexterity innovation: the serial mediating role of knowledge re-orchestration and digital capabilities

Purpose The emergence of digital technology has led to increased interest among academics in digital factors that promote innovation. However, the role of digital literacy as a key individual characteristic of managers in digital environments has been neglected. This study explores whether and how managers’ digital literacy affects ambidexterity innovation. Based on resource orchestration theory, a theoretical model containing managers’ digital literacy, knowledge re-orchestration, digital capabilities and ambidexterity innovation was constructed. Design/methodology/approach This study collected 349 questionnaires from China, and hypotheses were tested using PLS-SEM. Findings The findings suggest that managers’ digital literacy, knowledge re-orchestration and digital capabilities are all important antecedents of ambidexterity innovation, and that managers’ digital literacy can positively influence knowledge re-orchestration and digital capabilities. Furthermore, managers’ digital literacy influences ambidexterity innovation through the serial mediation of knowledge re-orchestration and digital capabilities. Research limitations/implications The model can be enriched in the future by exploring boundary conditions as well as expanding the sample to more diverse organizations and regions to improve generalizability. Practical implications This study highlights the value of human capital in the digital age and suggests that enterprises need to focus on the importance of using digital technologies to empower knowledge management and to develop digital capabilities. Originality/value This study enriches the research context of orchestration theory from a knowledge perspective and uniquely integrates managers’ digital literacy, knowledge re-orchestration and digital capabilities to explore their combined impact on ambidexterity innovation. This study enriches the research on orchestration theory from a knowledge perspective and explores the value of human capital in the digital era. It also makes important recommendations on how to realize ambidexterity innovation by encouraging knowledge re-orchestration and cultivating digital capabilities.