The influence of Industry 4.0 capabilities on organizational exploration and exploitation

Purpose The aim of this paper is to examine how digitalization capabilities related to technological, individual, and managerial dimensions influence organizational ambidexterity, specifically the balance between exploration and exploitation activities. Design/methodology/approach An empirical survey was conducted among 370 manufacturing and service firms operating in Greece. Initially, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were applied. Finally, the structural relationships among the latent factors were determined through Structural Equation Modelling (SEM). Findings The findings indicate that digitalization capabilities are positively associated with both exploitation- and exploration-oriented activities, with a stronger effect on exploitation, thereby underscoring their critical role in fostering sustainable organizational performance. Originality/value Unlike prior studies that primarily focus on broader industrial contexts, this research provides a regionally specific yet widely applicable perspective by examining the Greek manufacturing and service sectors. By doing so, we offer novel insights into the mechanisms through which I4.0 capabilities drive organizational ambidexterity, thereby bridging theoretical gaps and offering practical implications for firms navigating digital transformation. Research limitations/implications This study is limited by its focus on Greek firms, which may restrict the generalizability of the findings to other economic, cultural, or industrial contexts. The use of self-reported survey data introduces potential response bias and limits causal inference. Future research should employ longitudinal or cross-country designs and include objective performance indicators to validate and extend the model across diverse organizational settings.