Dynamic Evolution of Ambidextrous Digital Innovation Capabilities and the Development of Environmental, Social and Governance Performance

Siying Wang, Haiqing Hu, Xianzhu Wang and Yusheng Wang

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 5, 5833-5857

Abstract: As firms face increasing pressure from external stakeholders, more organizations are striving to enhance their environmental, social, and governance (ESG) performance. Digital innovation capabilities (DICs) often play an important role in improving ESG performance. However, the interaction between different types of DICs—namely, exploratory and exploitative DICs—and their combined impact on ESG performance remains underexplored in existing research. Therefore, this study investigates how ambidextrous DICs (ADICs) affect ESG performance. The results indicate that ADICs significantly enhance ESG performance, and that market value (MV) partially mediates this relationship. Furthermore, financial regulation and structure positively moderate the link between ADICs and MV, indirectly contributing to improved ESG performance. These insights provide valuable guidance for organizations seeking to enhance ESG performance through a balanced approach to exploratory and exploitative DICs. Additionally, this study deepens the understanding of how ADICs and external financial environments collectively drive ESG improvements.

Date: 2025
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https://doi.org/10.1002/csr.70003

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:5:p:5833-5857

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