Demographic transition, digital transformation, and intergenerational knowledge transfer in firms: A study on ambidextrous innovation performance based on dynamic capabilities
Against the backdrop of global population aging and the rapid expansion of the digital economy, firms face the dual challenge of changing intergenerational workforce structures and digital transformation. This study is situated within the dynamic capabilities stream and asks how macro-level demographic and digital transitions translate into firm-level ambidextrous innovation through intergenerational knowledge routines. Grounded in dynamic capabilities theory, the study constructs a mechanism-based framework linking firm-level demographic transition, digital transformation, intergenerational knowledge transfer, dynamic capabilities, and ambidextrous innovation performance. Using 12,468 firm-level observations from the World Bank Enterprise Survey 2019–2023 across 32 countries, the analysis combines hierarchical regression, bootstrapped mediation and moderation tests, country and industry fixed effects, cluster-robust standard errors, alternative measurement checks, instrumental-variable sensitivity tests, developed- and emerging-economy subsample tests, and lag-effect tests. The results show that: (i) firm-level demographic transition has a significant inverted U-shaped effect on ambidextrous innovation performance, while digital transformation has a significant positive effect; (ii) intergenerational knowledge transfer partially mediates these relationships; (iii) dynamic capabilities positively moderate the inverted U-shaped relationship between demographic transition and intergenerational knowledge transfer, as well as the positive relationship between digital transformation and intergenerational knowledge transfer; and (iv) the indirect effects of demographic transition and digital transformation on ambidextrous innovation via intergenerational knowledge transfer are stronger for firms with high dynamic capabilities. The study contributes by identifying intergenerational knowledge transfer as a behavioral micro-foundation through which firms translate demographic and digital antecedents into innovation outcomes. The findings are interpreted as robust associations supported by additional identification checks, rather than as definitive causal proof.
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