Impact of AI on firm ambidextrous innovation: Mediating role of digital knowledge coupling

Abstract

Amid rapid technological advancement, artificial intelligence (AI) has emerged as a crucial driver of innovation. However, the mechanisms through which AI adoption affects firm technological innovation capabilities remain insufficiently understood. Using a sample of 277 Chinese manufacturing firms from 2015 to 2023, this study analyzes the impact of AI on firm ambidextrous innovation and the mediating role of digital knowledge coupling. The findings demonstrate that AI strengthens exploitative and exploratory innovation capabilities, though its effect on the former is more substantial. Existing digital knowledge coupling is a positive mediator in the relationship between AI and exploitative innovation but functions as a negative mediator in AI’s relationship with exploratory innovation. New digital knowledge coupling positively mediates AI’s effect on exploitative and exploratory innovation. The presence of a chief information officer (CIO) weakens AI’s positive effect on existing digital knowledge coupling, while an executive digital background strengthens AI’s impact on new digital knowledge coupling. AI’s innovation-enabling effects are more potent for non-SOEs and high-tech industries. This study contributes to the literature by illuminating the complex interplay between AI adoption, digital knowledge structures, and firm technological innovation, thereby providing valuable insights for managers seeking to leverage AI for balanced innovation outcomes in an increasingly digital competitive landscape.