Does knowledge digitalization boost innovation? Empirical evidence from taxation organizations in China

Purpose: This study aims to assess the effects of technological, organizational and environmental contexts on innovation ambidexterity (IA) in taxation organizations. Particularly, a moderated moderation model is proposed to shed light on the interactions within the technology–organization–environment (TOE) framework. Design/methodology/approach: Based on the TOE Framework and open innovation theory, the authors introduce a moderated moderation model that investigates the factors influencing demand-pull knowledge absorptive capacity (demand-pull KAC). The authors used the process macro and analyzed a data set of 481 Chinese employees working in taxation organizations. Findings: The results indicate that knowledge digitalization capability and demand-pull KAC are positively associated with IA, and knowledge channels (KCs) act as positive moderators. In addition, varying moderating roles of three types of KCs under low and high levels of environmental uncertainty (EU) have been examined. Originality/value: A moderated moderation model has been rarely proposed; hence, this study contributes to advancing the utilization of this method. In addition, this study highlights the significance of accessing external knowledge as a prerequisite for absorption within taxation organizations and underscores the moderating effects of different KCs under different levels of EU.