Promoting or inhibiting? The “double-edged” impact of enterprise digital capability on employees′ internal entrepreneurship

Drawing on resource orchestration theory and conservation of resources theory, this study investigates the dual mechanisms through which enterprise digital capability (EDC) influences employees’ internal entrepreneurship. A cross-level research design was employed to analyze data collected from 82 leaders and 325 employees. This study advances understanding of the impact of EDC on internal entrepreneurship by identifying a competitive mediation pattern in which knowledge sharing and knowledge hiding operate as opposing mediating mechanisms grounded in resource orchestration theory and conservation of resources theory, respectively. Furthermore, this study identifies DHRMPs as an important boundary condition that influences the relative strength of these competing pathways and determines the extent to which EDC contributes to internal entrepreneurship. These findings provide valuable insights for organizations seeking to leverage digital capability while mitigating its unintended consequences for employees.