Leveraging digital and intelligent technologies for technological innovation ambidexterity: the roles of knowledge recombinant capabilities

Purpose Drawing on knowledge-based theory and from the perspective of dynamic capabilities, this study aims to investigate the impact of digital and intelligent (D&I) transformation on both exploitative and explorative technological innovation, and further examines how knowledge recombinant capabilities, namely, reuse and creation, moderate these effects. Design/methodology/approach The research model was empirically examined by using a panel data set of Chinese listed firms in Shanghai and Shenzhen Stock Exchanges from 2000 to 2022. To address potential endogeneity concerns and strengthen the validity of the findings, we further conducted a series of robustness checks, including two-stage least squares estimation with the instrumental variable, a firm-level fixed-effect model that controls for unobserved heterogeneity across firms and over time and the panel regression models using robust and clustered standard errors. Findings The empirical results demonstrate that firm D&I transformation exerts a significantly positive impact on both exploitative and explorative technological innovation, highlighting the dual roles of D&I transformation in reinforcing incremental improvements as well as fostering breakthrough advances. Moreover, the analysis reveals that firms with stronger knowledge recombination capabilities, including both recombinant reuse capability and recombinant creation capability, could gain more technological innovation benefits from D&I transformation. Originality/value The findings highlight that firms’ benefits from D&I transformation vary, with knowledge recombination capabilities critically shaping how such transformation drives technological innovation, offering insights into how firms can strategically manage and reconfigure knowledge to fully unlock the innovative potential of technological changes.