Digital Technology Uncertainty Exposure and Innovation Ambidexterity: Evidence from Chinese Listed Firms
Main article
Abstract
This study investigates the impact of digital technology uncertainty exposure (DTUE) on corporate innovation ambidexterity among Chinese A-share listed firms from 2012 to 2023. Distinguishing between exploratory and exploitative innovation, we construct a firm-level DTUE indicator through sentiment analysis of Management Discussion and Analysis (MD&A) sections using a DeepSeek-V3 and FinBERT hybrid Large Language Model (LLM) pipeline. Drawing on threat-rigidity theory, upper echelons theory, and the attention-based view (ABV), we theorize that DTUE suppresses exploratory innovation through managerial cognitive conservatism and R&D resource diversion channels, while leaving exploitative innovation largely unaffected. Baseline panel regressions with two-way fixed effects show that a one-standard-deviation increase in DTUE reduces exploratory innovation by approximately 1.8% and innovation ambidexterity by approximately 2.4%. These effects are confirmed via propensity score matching (PSM), COVID-year exclusion tests, and sub-dimensional analyses. Using the staggered adoption of Digital Technology Compliance Governance Standards (DTCGS) across Chinese cities as a quasi-natural experiment, multi-period difference-in-differences (DID) estimates confirm that effective digital governance restores exploratory innovation capacity. Mechanism tests validate both the managerial conservatism (psychological) and R&D diversion (resource) channels. Heterogeneity analyses reveal that the suppressive effect is particularly pronounced in non-state-owned enterprises (non-SOEs), competitive industries, and technology-intensive sectors. These findings advance the understanding of digital risk governance and its implications for innovation strategy.
