Dynamic Ambidexterity in Corporate Venture Capital: A Pathway to Green Innovation and Environmental Performance

ABSTRACT This paper examines the influence of various ambidexterity tactics on green innovation among corporate investors. It explores how these investors might improve their environmental performance by acquiring green innovations through ambidextrous corporate venture capital (CVC) investments. The study demonstrates that 126 American corporate investors can successfully leverage green innovation by making ambidextrous investments in entrepreneurial enterprises. Results show that within‐period balance between exploration and exploitation is associated with higher green innovation. Corporate investors who pursue dynamic ambidexterity or a combination of dynamic and static ambidexterity show enhanced outcomes in green innovation. This research demonstrates a clear connection between the green innovation of corporate investors and their enhanced environmental performance, particularly in terms of reducing greenhouse gas (GHG) emissions. The study contends that ambidextrous CVC investments serve as a gateway for corporate investors to elevate their environmental performance through the strategic acquisition of green innovation. This research provides significant insights for company managers, regulators, and government bodies, delivering practical knowledge for establishing environmentally friendly practices in corporate investment strategies.