The Impact of Knowledge Search and Its Ambidexterity on Digital Innovation in SRDI “Little Giant” Enterprises

Abstract

Internal knowledge search and external knowledge search are important ways to promote digital innovation in specialized, refined, distinctive, and innovative (SRDI) “little giant” enterprises. Nevertheless, further studies regarding how to coordinate the contradictory and complementary relationships between the two need to be done. Based on the organizational ambidexterity theory, this paper examines the mechanism and boundary conditions where knowledge search and its ambidexterity influence digital innovation in SRDI “little giant” enterprises by analyzing the data of the SRDI “little giant” enterprises listed on the Shanghai and Shenzhen A-share markets from 2011 to 2023. The results show that there are inverted U-shaped relationships between internal/external knowledge search and digital innovation. The combined dimension of ambidextrous knowledge search has a significant positive impact on digital innovation, and the balanced dimension of ambidextrous knowledge search has an inverted U-shaped relationship with digital innovation. Absorptive capacity positively moderates the relationships between the combined and balanced dimensions of ambidextrous knowledge search and digital innovation. The conclusions provide theoretical support and empirical evidence that encourage “little giant” enterprises to conduct knowledge search for better performance in digital innovation and offer guidance for accelerating the digital transformation of small and medium-sized enterprises.

Keywords

internal knowledge search / external knowledge search / digital innovation / absorptive capacity / specialized, refined, distinctine, and innovative (SRDI) “little giant” enterprises / organizational ambidexterity theory

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Higher Education Press