Role of Trust in the Relationship between Absorptive Capacity and Innovation Ambidexterity: The Importance of Living Labs and Coworking Spaces

Abstract

Strategic management research emphasizes the importance of absorptive capacity and innovation ambidexterity as key levers for enhancing corporate competitiveness in the context of digital transformation and the "Smart Life" paradigm. These capabilities enable firms to combine the exploration of new opportunities with the exploitation of existing resources. However, the interactions between these two concepts remain ambiguous. This paper, titled "Role of Trust in the Relationship between Absorptive Capacity and Innovation Ambidexterity," investigates the moderating role of trust within this dynamic. It draws on a literature review and three exploratory studies to develop an explanatory model, tested on a sample of 258 entrepreneurs and start-up/SME incubators in the ICT sector in Tunisia, within the framework of the "Smart City" initiative. The findings highlight the significant impact of absorptive capacity on innovation ambidexterity, with a pivotal role played by inter-organizational trust. The inclusion of Living Labs and Coworking Spaces in the study underscores their growing importance as collaborative platforms that enhance absorptive capacity and ambidextrous innovation through real-time knowledge exchange and an environment conducive to experimentation and co-creation.