How to foster exploratory and exploitative innovation: investigating the effects of inclusive leadership, knowledge sharing and environmental uncertainty

PurposeGiven the importance of identifying the antecedents of innovation for firms to follow and achieve it, the purpose of this paper is to investigate the effect of inclusive leadership (IL) and knowledge sharing (KS) on ambidextrous innovation capabilities, namely exploratory and exploitative innovation. It also explores the possible moderating role of environmental uncertainty in the relationship between KS and ambidextrous innovation.Design/methodology/approachThis study used structural equation modeling (SEM) to examine the relationship among latent factors in the proposed research model based on the data gathered from 118 manufacturing and service firms.FindingsThe empirical findings support the significant and positive impact of IL on exploratory and exploitative innovation through the mediating role of KS. It highlights the moderating mechanism of environmental uncertainty in fostering the relationship between KS and ambidextrous innovation.Research limitations/implicationsTo gain a deeper understanding of the benefits and important role of knowledge resources, future research should investigate the potential role of IL practices in creating a KS culture for promoting specific forms of innovation such as open innovation or frugal innovation.Practical implicationsThe paper provides a valuable understanding and novel approach for managers and directors of firms in developing and emerging countries to improve ambidextrous innovation by practicing IL for fostering KS in organizations.Originality/valueThe paper is unique in its attempts to bridge the research gaps in the literature and provide deeper insights on the mediating role of KS and the moderating effect of environmental uncertainty in pursuing both exploratory and exploitative innovation.