Learning before adopting: unleashing radical innovation potential through a learning-centred digital technology strategy

While the rise and proliferation of digital technologies offer avenues for fostering radical innovation, many new ventures encounter substantial obstacles when adopting these technologies. These challenges often stem from limited knowledge, skills, and capabilities regarding digital technology. To address these pressing issues, we integrate organisational learning theory with the technological learning literature, introducing the concept of digital technology learning (DTL) as a vital pathway towards radical innovation. Our study tests the proposed hypotheses using quantitative data collected from a random sample of 269 new ventures in China. The findings reveal that both exploratory and exploitative DTL are positively correlated with radical innovation, highlighting the multifaceted mechanisms through which DTL contributes to innovative outcomes. Moreover, the study examines the contingent effects of environmental munificence and industry competition on these relationships. Notably, while a munificent environment can provide resources, it may also lead to myopia, which diminishes the positive impact of exploratory DTL on radical innovation. Overall, this research underscores the critical yet often overlooked role of DTL in advancing radical innovation and provides important implications for new ventures aiming to enhance innovation capabilities in the digital age.