How does knowledge strategy planning enhance ambidexterity through business model innovation? The perspective for digital technologies in developing economies

Purpose This study aims to investigate how knowledge strategic planning (KSP) enabled by information system (IS) strategies influence a firm’s innovation ambidexterity (AMI) through business model innovation (BMI), with a focus on rational and emergent planning. Design/methodology/approach Brazilian organizations were asked to fill out a survey, and 251 valid answers were received. This study tested the hypothesis by partial least squares path modeling. Findings The empirical evidence indicated that knowledge strategy planning facilitated by information systems (KSP-IS) positively influences BMI. The results also indicated that BMI exerts a beneficial influence on AMI. Therefore, possessing a digital strategy (DS) significantly enhances the linkage between KSP-IS and BMI. Practical implications Organizations must implement rational and emergent planning strategies to facilitate BMI and promote innovative ambidexterity. Managers must meticulously assess investments in IS strategies bolstered by developing technology to facilitate effective strategizing and optimize the influence on BMI. In emerging economies, it is essential to prioritize the adoption of digital technologies informed by a clear DS to enhance the influence of KSP-IS on BMI. Originality/value To the best of the authors’ knowledge, this study is the first research to empirically examine the role of strategic knowledge enabled by IS in the context of rational and emergent planning approaches for KSP-IS, especially within the context of enterprise in Brazil.