The Structural Dimensions of Involution Competition among Enterprises and Its Impact on Ambidextrous Innovation

Xuan Liu and Haowei Zheng ()
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Xuan Liu: Nanjing Tech University, School of Economics and Management
Haowei Zheng: Nanjing Tech University, School of Economics and Management

A chapter in Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025), 2025, pp 752-759 from Springer

Abstract: Abstract In recent years, the global economic landscape has become increasingly complex, and domestic market demand in China has declined, leading to a growing trend of “involution-type” competition among Chinese enterprises. Such competition not only reduces overall industry efficiency but also severely restricts firms’ innovation capabilities. Against this backdrop, this study explores the impact mechanisms of involution-type competition on ambidextrous innovation—comprising exploratory and exploitative innovation. Drawing on existing research, the study conceptualizes involution-type competition as consisting of four dimensions: inefficient input, short-term orientation, homogeneous behavior, and disorderly competition. The findings indicate that these behaviors have complex and differentiated effects on ambidextrous innovation. While some aspects may marginally promote short-term exploitative innovation, they tend to significantly inhibit long-term exploratory innovation, thereby undermining firms’ sustainable competitiveness. Based on these insights, the paper proposes strategic and policy recommendations to mitigate involution-type competition and balance short-term gains with long-term innovation, offering theoretical grounding and practical guidance for enterprise transformation and industrial environment optimization.

Keywords: Involution-type Competition; Ambidextrous Innovation; Exploratory Innovation; Exploitative Innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-770-0_85

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DOI: 10.2991/978-94-6463-770-0_85

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