Managing the exploitation/exploration paradox: the role of digital transformation

Xiaokai Li, Juntao Li, Han Han and Junguo Shi

Applied Economics Letters, 2025, vol. 32, issue 8, 1069-1072

Abstract: Ambidexterity, characterized by persistent tensions between exploration and exploitation, requires dynamic management. This study explores the impact of digital transformation (DT) on balancing these elements, revealing an inverted U-shaped relationship between exploration proportion in innovation ambidexterity and performance; as firms advance in DT, the optimal balance point between exploration and exploitation shifts towards exploitation.

Date: 2025
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DOI: 10.1080/13504851.2023.2301462

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