How do ambidextrous capabilities promote disruptive innovation in emerging markets, from the lens of knowledge-based view?

Purpose To adapt to the rapidly changing competitive environments, firms in emerging economies must constantly adjust and renew their knowledge to develop disruptive innovation and sustain competitive advantages. The purpose of this study is to explain how combined exploratory and exploitative capabilities (ambidextrous capabilities) can contribute to specifically disruptive innovation. In the process of analyzing the influencing mechanism of ambidextrous capabilities on disruptive innovation, this study evaluated the mediating roles of organizational learning and moderating roles of institutional support based on the knowledge-based view. Design/methodology/approach Data were collected from 315 senior managers from manufacturing firms in China. Hierarchical regression and bootstrap analysis are used to test the hypotheses and structural models. Findings The finding shows that ambidextrous capabilities improve disruptive innovation through exploratory and exploitative learning as they replenish the knowledge base in firms. Institutional support has moderated effects on the relationship between organizational learning and disruptive innovation. Formal institutional support strengthens the effects of exploitative learning on disruptive innovation, whereas informal institutional support weakens the effects. Originality/value This study theorizes and tests the indirect relationship between ambidextrous capabilities and disruptive innovation drawing on knowledge-based view, which open the black box of how ambidextrous capabilities influence disruptive innovation and provides a better understanding of the underlying mechanisms between ambidextrous capabilities and disruptive innovation. Moreover, previous studies focused mainly on developed countries’ firms and neglected to explore contingent conditions of disruptive innovation in different institutional environments. By introducing institutional support, this study explores institutional support as contingent conditions and provides complementary research in disruptive innovation from emerging economies.