The effect of digital transformation on manufacturing enterprises’ ambidextrous innovation: the perspective of a multi-level knowledge base

Purpose Prior research shows mixed findings regarding digital transformation’s (DT) impact on manufacturing enterprises’ ambidextrous innovation. Integrating the knowledge-based view and absorptive capacity theory, this study aims to argue that inconsistencies come from neglect of multi-level knowledge configurations and examine how enterprise-level knowledge bases (KBs) and industry-level knowledge bases (IKBs) jointly moderate the relationship between DT and ambidextrous innovation. Design/methodology/approach This study explores the impact of DT on exploitative and exploratory innovation in Chinese manufacturing enterprises from 2014 to 2021 and examines the moderating role of KB, IKB and the joint moderating role of KB and IKB. Findings DT positively affects exploitative and exploratory innovation; the breadth and depth of the enterprise KB strengthen this effect; the analytical IKB amplifies DT’s impact on exploitative innovation, while the synthetic IKB enhances DT’s impact on exploratory innovation; and the moderating role of enterprise KB depends on industry knowledge context. Originality/value This study addresses theoretical tensions by unraveling interaction between internal and external knowledge structures and provides insights which enterprises can use to align digital strategies with internal knowledge portfolios and industry knowledge characteristics to boost ambidextrous innovation.