Heterogeneous impact of digital technology adoption on ambidextrous innovation: the moderating role of environmental uncertainty and industry competition

Purpose This study aims to explore how digital technology adoption differentially affects the two dimensions of ambidextrous innovation. From the perspective of resource crowding-out and empowering effects, the authors analyze the impacts of digital technology adoption on exploratory and exploitative innovation, as well as the moderating effects of environmental uncertainty and industry competition. Design/methodology/approach This study uses a fixed-effects model with a sample of China’s Shanghai and Shenzhen A-share listed companies from 2008 to 2024. Findings There is a U-shaped relationship between digital technology adoption and exploratory innovation, while a positive linear relationship exists between digital technology adoption and exploitative innovation. The U-shaped relationship is flatter for firms under high environmental uncertainty and steeper for those facing fierce industry competition. Environmental uncertainty and industry competition weaken the positive relationship between digital technology adoption and exploitative innovation. Originality/value This study deepens the theoretical understanding of how digital technology adoption differently influences exploratory and exploitative innovation, thereby addressing ongoing debates in the literature.