Exploring the Connections: Ambidexterity, Digital Capabilities, Resilience, and Behavioral Innovation

Abstract

This study investigates the impact of pre-COVID-19 organizational ambidexterity, digital capabilities, and organizational resilience on firms’ innovation behavior post the second COVID-19 wave. Utilizing World Bank business surveys from 2019 and COVID follow-up surveys in 2020 and 2021 across 21 countries (8,928 firms), we employ partial least squares structural equation modeling and necessary condition analysis. Findings reveal that organizational ambidexterity and digital capabilities positively influence innovation. Organizational ambidexterity indirectly impacts innovation through digital capabilities. The study emphasizes the crucial role of pre-COVID-19 organizational ambidexterity in catalyzing innovation, highlighting its synergy with digital capabilities. Recognizing and cultivating organizational ambidexterity, along with enhancing digital capabilities, are recommended for firms seeking competitive advantages. The study underscores the importance of leaders fostering ambidexterity and knowledge-sharing practices to drive innovation.