Unleashing product innovativeness: Investigating the synergy of ambidextrous leadership, organizational agility, knowledge-based dynamic capabilities, and the moderating role of entrepreneurial orientation: evidence from AI industry of the Yangtze river delta region, China

Abstract

This study investigates how ambidextrous leadership (AL) influences product innovativeness (PI) through the mediating effects of organizational agility (AG) and knowledge-based dynamic capabilities (KBDCs), with entrepreneurial orientation (EO) moderating these relationships within firms in the artificial intelligence (AI) industry. A quantitative research method was applied, employing a survey questionnaire administered to 405 respondents across 76 AI firms located in the Yangtze River Delta region of China. Respondents were randomly selected from reputable databases. Structural equation modeling (SEM) with AMOS 26 was used to evaluate model fit and test hypotheses, with data analyzed using covariance-based SEM. Results reveal that ambidextrous leadership has a significant positive effect on product innovativeness, organizational agility, and knowledge-based dynamic capabilities. KBDC and AG both mediate the positive relationship between AL and PI, enabling an analysis of both direct and indirect connections among these factors. Interestingly, the findings indicate that opening leader behaviors alone did not significantly influence product innovativeness, while closing leader behaviors had a substantial impact on it. Additionally, the study examined the moderating effect of entrepreneurial orientation on the interrelationships among these variables; notably, higher EO intensified the impact of AL on PI, as well as the effects of AG and KBDCs on PI. This study expands existing knowledge on leadership dynamics in the context of new product development, emphasizing the importance of adaptable leadership. It iv provides a novel perspective by examining the intricate relationships among AL, AG, KBDC, PI, and EO, particularly focusing on the relatively new concept of ambidextrous leadership. The study makes a substantial contribution by analyzing the mediation and moderation effects within this framework, shedding light on the mechanisms driving product innovativeness, marking one of the earliest investigations in this field. These findings offer valuable insights for firms aiming to optimize critical knowledge resources, foster product innovation, and enhance competitive competencies.