2.3.1. The Direct Effect of Network Ambidextrous Capabilities on Opportunity Iteration
- (1)
Network exploitation capability and Opportunities Iteration
According to optimal distinctiveness theory, individuals and organizations must balance uniqueness and legitimacy to foster innovation. Network exploitation capability emphasizes maintaining stable and reliable connections to ensure organizational legitimacy, thereby optimizing existing resources and promoting entrepreneurial opportunity iteration. First, digital startups can reduce legitimacy deficits through network exploitation capability, acquiring digital technology resources from existing relationships. The generative nature of digital technology expands the unique knowledge created during interactions, enabling startups to recognize new opportunities [
41]. Opportunity recognition drives entrepreneurs to better understand the value of these opportunities [
42], intensifying the process of entrepreneurial opportunity iteration. This provides strategic guidance and value support for the continuous creation of digital opportunities in startup development. Second, startups can more easily mimic advanced technologies and innovative ideas from their industry or beyond by leveraging the legitimacy gained from existing network relationships. This accelerates the learning curve and reduces startup costs [
43], facilitating market entry and allowing for timely adjustments to entrepreneurial opportunities based on market feedback. Finally, startups often face information asymmetry with larger partners. The legitimacy obtained through network exploitation capability can effectively coordinate with external groups or individuals and improve internal communication. This helps build trust and reduce opportunism through digital technologies [
44], lowering initial risks and receiving diverse knowledge from different sources in a structured manner. Consequently, this increases the likelihood of updating entrepreneurial opportunities. Thus, this study proposes the following hypothesis:
Hypothesis 1a (H1a): Network exploitation capability positively influences entrepreneurial opportunity iteration.
- (2)
Network Exploration Capability and Opportunity Iteration
The collaborative nature of digital entrepreneurship results in co-creation, rapid iteration, feedforward processes, and high efficiency in identifying entrepreneurial opportunities [
26,
45]. Digital technologies enable startups to expand their networks with stakeholders at a low cost, creating open organizational boundaries that facilitate frequent interactions [
46]. These network exploration capabilities provide heterogeneous resources crucial for the iteration of digital entrepreneurial opportunities. According to the optimal distinctiveness theory, emerging fields such as the digital economy pursue differentiation strategies while achieving legitimacy [
47]. Network exploration capability enables the acquisition of heterogeneous resources through new relationships, fostering the development of new products and services and reflecting an organization’s strategic differentiation mindset. These capabilities effectively promote opportunity iteration through the integration of diverse resources. First, network exploration capability continually increases the participation of entities with heterogeneous knowledge and information in the opportunity construction activities of enterprises. Interactions among these entities generate new knowledge combinations, promoting a consensus on differentiation strategies among stakeholders and driving entrepreneurial opportunity iteration [
1]. Second, the use of digital technologies facilitates more convenient and closer interdisciplinary connections and interactions [
48], accelerating the dissemination and exchange of knowledge and information. Network exploration capability involves acquiring new knowledge and information through the establishment of new relationships. Coupled with data analysis, it allows for an accurate understanding of user experiences and the exploration of both explicit and implicit customer needs, key considerations for the iteration of entrepreneurial opportunities [
6]. Finally, social cognition theory posits that cognition and decision-making are influenced by the contextual factors of an enterprise’s external relational network [
49]. Network exploration capability aids managers in understanding external development policies and market environments through continuously updated network relationships. This ongoing entrepreneurial learning from external networks enhances managerial cognition and promotes strategic differentiation thinking within organizations. This cognitive adjustment process, along with the rapidly evolving external market environment driven by digital technologies, enables startups to adapt their entrepreneurial opportunity prototypes and make strategic decisions crucial for opportunity iteration. Therefore, this study proposes the following hypothesis:
Hypothesis 1b (H1b): Network exploration capability positively influences the iteration of entrepreneurial opportunities.
2.3.2. Mediating Effect of Routine Replication
Routine is defined as a learned behavior pattern that encapsulates organizational capabilities and knowledge, allowing enterprises to repeat these skills [
12,
50]. Existing research has categorized routines from various perspectives, including cognitive behavior [
51], hierarchy [
52], process [
53], and capability [
11,
54]. Among these, the capability perspective divides routines into two dimensions: general and flexible. General routines primarily pertain to knowledge and skills related to general operational capabilities within management processes (e.g., manufacturing processes). In contrast, flexible routines pertain to knowledge combinations associated with dynamic capabilities (such as strategic change and vision recognition). Routine replication involves transferring knowledge between organizational dyads. Organizations accomplish replication by deconstructing, recombining, restoring, and applying knowledge from routine templates [
55]. These templates consist of a series of systematically compiled and recombined knowledge elements, effectively overcoming knowledge stickiness within routines [
56]. The capability perspective’s distinction between general routines replication and flexible routines replication reflects the micro-processes of resource integration, reorganization, and routine generation and deployment. General routines replication involves organizations imitating and adapting clear, stable rules or behavior patterns to achieve incremental capability improvements, thereby continuously enhancing entrepreneurial opportunities for digital startups. In contrast, flexible routines replication entails deconstructing diverse and variable implicit rules or behavior patterns, optimizing and updating them for practical application, and seeking radical capability enhancements to innovate and iterate on entrepreneurial opportunities [
57,
58]. This study adopts these dimensional distinctions. General routines replication is highly sensitive to stable environments and exploitation capabilities [
11], whereas flexible routines replication is more responsive to turbulent environments and exploration capabilities [
11]. Knowledge management theory indicates that firms need to seek and acquire innovative knowledge from external sources [
59]. Nahapiet and Ghoshal (18) argued that social relationships serve as a conduit for the exchange and combination of knowledge in new ventures, facilitating the iteration of entrepreneurial opportunities through the creation of new knowledge [
60]. Therefore, it is essential to further investigate the differentiated mechanisms of general routines replication and flexible routines replication in the context of network ambidextrous capabilities and opportunity iteration.
- (1)
Mediating Effect of General Routines Replication
Research on knowledge management theory indicates that no single enterprise possesses all the knowledge resources required for innovative development [
53]. Therefore, businesses must seek and acquire innovative knowledge from external sources. Network exploitation capability aids organizations in acquiring resources, technologies, and processes related to operations, thereby stabilizing and consolidating knowledge. Replication of general routines involves transferring relatively stable operational knowledge [
53,
60]. Network exploitation capability supports new ventures in acquiring routine resources by demonstrating legitimacy, positively impacting the replication of general routines. Firstly, network exploitation capability enhances the depth of general routines replication. It enables organizations to leverage existing relationships to access resources and conduct deep local knowledge searches. This facilitates exploitative learning, leading to the integration and absorption of knowledge, which in turn expands and refines existing knowledge [
58]. This process strengthens applications in familiar domains and promotes the replication of general routines. Secondly, network exploitation capability reduces the costs associated with searching for templates for routine replication. Replication of general routines involves the optimized absorption of perceived, recognized, and classified knowledge templates [
61]. New ventures can acquire necessary knowledge templates through network exploitation capability, replicating rules, procedures, knowledge, and learning capabilities at a lower cost, thereby building the capabilities of digital startups. Lastly, given the rapid pace of technological change, startups must respond swiftly to dynamic market environments. Network exploitation capability enables timely understanding of market changes, facilitating the replication of knowledge templates that are relatively simple in structure, stable, and continuously evolving. This process addresses knowledge stickiness and enhances the efficiency of general routines replication.
On the other hand, replication of general routines improves and expands the existing knowledge of new ventures [
62], enabling the rapid identification and correction of flaws in initial opportunities, thereby positively influencing opportunity iteration. Firstly, replication of general routines focuses on the perception, recognition, and classification of knowledge templates. This optimized absorption of explicit knowledge through fixed cognitive pathways reduces early-stage costs for opportunity iteration in digital startups and increases iteration efficiency. Segarra-Ciprés (2018) argues that in-depth knowledge search allows enterprises to acquire detailed and granular innovative knowledge, facilitating service innovation [
63]. Secondly, replication of general routines often relies on vicarious learning to improve and expand existing knowledge. This behavior continually reconstructs an organization’s digital technologies, prompting the improvement of existing routines and generating momentum for opportunity iteration. Benner (2003) points out that the introduction of routines enhances an organization’s technological innovation capabilities through continuous improvement of existing processes, thereby capturing new market opportunities [
64]. Finally, replication of general routines depends on the organizational ability to deeply analyze routine templates. By replicating clear and stable templates, organizations enhance their competitive advantage, mitigate risks, and stabilize knowledge transfer, providing assurance for the construction phase of opportunity iteration. Szulanski argues that by replicating successful business practices, enterprises can reduce uncertainty and risk in entering new markets and developing new products [
65]. Therefore, this study proposes the following hypothesis:
Hypothesis 2a (H2a): Replication of general routines mediates the relationship between network exploitation capability and opportunity iteration.
- (2)
The Mediating Effect of flexible routines replication
Research based on knowledge management theory indicates that creating new network connections helps organizations acquire novel information distinct from their existing knowledge base, thereby enhancing organizational performance [
66]. Network exploration capability enhances the replication of flexible routines in digital startups. Firstly, the rapid iteration of digital technologies exposes startups to increased uncertainty. Flexible routines, characterized by diverse knowledge templates and rich content, exhibit discontinuous and radical evolution [
67]. For startups operating in a turbulent digital environment, network exploration capability facilitates the acquisition of extensive new knowledge, helping organizations to discern and integrate diverse, dynamic implicit rules or behavior patterns, thereby promoting the replication of flexible routines [
11]. Secondly, digital technology reduces communication costs, enhancing network connectivity. This increases the heterogeneity of knowledge within the network, requiring digital startups to leverage flexible routines replication to integrate this diverse knowledge and enhance their innovation capabilities. Lastly, network exploration capability enhances inter-organizational relational learning. Flexible routines replication acts as a resource reconfiguration mechanism within organizational experiential learning, with network exploration capability providing additional learning resources for flexible routines replication [
68].
On the other hand, the replication of flexible routines adapts and modifies organizational routines in new or volatile environments, aiming fundamentally to acquire and absorb new knowledge. By improving organizational resource allocation, replication of flexible routines effectively promotes the evolution of entrepreneurial opportunities, achieving iterative development. Firstly, opportunity creation theory posits that the exchange and interaction of diverse knowledge lead to opportunity formation [
69], thereby shortening research and development cycles. Replication of flexible routines emphasizes the search, adjustment, and modification of knowledge templates, facilitating the exploration and variation of tacit knowledge through improvisational cognitive tracing. This approach helps identify customer needs and improves the efficiency of opportunity iteration. Secondly, replication of flexible routines often relies on experiential learning to acquire breakthrough new knowledge and deconstruct existing resources, promoting the accumulation of diverse knowledge. This, in turn, advances stakeholder consensus and drives motivation for opportunity iteration [
6]. Lastly, replication of flexible routines depends on organizational exploration capabilities. When replicating routine templates in new or volatile digital environments, organizations continuously adjust and evolve routines to sustain innovative exploration. This process enables them to acquire the latest customer experiences and target the direction of opportunity iteration. Therefore, this paper proposes the following hypothesis:
Hypothesis 2b (H2b): Replication of flexible routines mediates the relationship between network exploration capability and opportunity iteration.
2.3.3. The Moderating Role of Digital Leadership
In developing digital startups, leaders must create a clear and meaningful digital vision. This involves leveraging information technology to induce changes in attitudes, emotions, thinking, behaviors, and performance within the organization, a capability known as digital leadership [
18,
70]. Digital leaders utilize their skills in digital, market, business, and strategic leadership to manage and lead interdisciplinary teams (both digitally skilled and non-digitally skilled), fostering strategic consensus among employees and enhancing the identification of new opportunities for the organization [
18,
71]. This paper defines digital leadership as the ability of leaders to drive the transformation of individual, group, and organizational attitudes and behaviors toward digital strategies through five key skills: digital communication and coordination, digital motivation and change management, digital team building and maintenance, digital technical expertise, and digital trust cultivation. This approach aims to foster the growth of startups. Strong digital leadership facilitates employees’ understanding and adoption of the best routines from external organizations, promoting iterative development of opportunities for digital startups to gain a competitive advantage. Therefore, this paper uses digital leadership as a moderating variable in the relationship between the replication of general routines and the iteration of entrepreneurial opportunities.
- (1)
The moderating role of digital leadership in the relationship between Replication of general routines and opportunity iteration
The upper echelons theory suggests that leaders’ characteristics influence strategic choices, which in turn affect organizational behavior [
16]. Digital leadership, a blend of digital technology and leadership skills, enables leaders to embrace digital transformation and inspire innovation among employees [
72]. High digital leadership allows employees to learn from the best general routines of collaborating organizations, optimizing structures and processes, and thus accelerating the identification, evaluation, and validation of entrepreneurial opportunities. Firstly, digital technology expertise in digital leadership effectively promotes innovation in digital technology within startups [
73]. The editable nature of digital technologies helps enterprises rapidly adapt to new environments [
23], breaking down the boundaries of entrepreneurial opportunities and accessing abundant resources. The resource pools created by digital technologies provide numerous templates for the replication of best general routines in digital startups, facilitating progressive learning and optimization activities, and providing more efficient tools for continuous opportunity refinement, thereby speeding up the opportunity iteration process. Secondly, digital leadership fosters effective communication and coordination within digital teams, establishing robust information channels [
74]. This enhances team members’ knowledge integration behaviors during the disassembly, deconstruction, and reconstruction of external templates in exploitative learning, thereby driving the optimization and upgrading of business opportunities. Lastly, digital leadership’s digital incentives and change management measures create an open and innovative cultural environment [
15], which helps improve the efficiency of deep searches in routine replication, accelerates the improvement and expansion of existing templates, and promotes opportunity iteration in startups. Therefore, this study proposes the following hypothesis:
Hypothesis3a (H3a): Digital leadership positively moderates the relationship between the replication of general routines and opportunity iteration.
- (2)
The Moderating Role of Digital Leadership in replication of flexible routines and Opportunity Iteration
Research on upper echelons theory indicates that digital leadership, through the effective use of digital technology, can identify and realize value-creating opportunities [
72]. Managers with digital leadership skills continuously adjust their computational abilities, communication skills, and management content to adapt to the digital transformation context [
75]. This adjustment ensures that organizations can leverage open innovation through improvisational searches to meet the diverse digital resource needs in digital opportunity innovation, thereby benefiting the opportunity iteration of digital startups.
Firstly, digital leadership provides various information, resources, and training to support the formation and development of organizational digital teams. Digital collaboration technologies enhance communication and information sharing among team members [
75], ensuring efficient filtering, variation, and optimization of templates in the replication of flexible routines, thereby reducing internal pressure on organizational opportunity iteration. Secondly, routines serve as repositories of organizational knowledge, embedding substantial tacit knowledge within flexible routine templates. New ventures replicate these flexible routines to acquire new digital technologies and digital knowledge, facilitating the iterative upgrade of existing entrepreneurial opportunities. Managers with digital leadership possess background knowledge that impacts the discovery and innovative use of tacit knowledge [
18]. Lastly, flexible routines rely on exploratory learning to acquire discontinuous heterogeneous knowledge. Under digital leadership, the establishment of digital trust enhances organizational members’ identification with the organization [
18], promoting collaboration and communication among team members. This enables organizations to efficiently conduct exploratory learning, seeking optimal solutions through continuous experimentation and innovation, thereby capturing opportunities in the market environment. Therefore, this study proposes the following hypothesis:
Hypothesis 3b (H3b): Digital leadership positively moderates the relationship between replication of flexible routines and opportunity iteration.
2.3.4. Moderated Mediation Effects
- (1)
Moderation of General Routines Replication by Digital Leadership
Based on the preceding theoretical analysis, hypothesis H2a posits that network exploitation capability promotes opportunity iteration through the replication of general routines. Hypothesis H3a further delineates the moderating role of digital leadership between replication of general routines and opportunity iteration. Collectively, this study infers that digital leadership moderates the entire mediation mechanism linking network exploitation capability, replication of general routines, and opportunity iteration, suggesting a presence of moderated mediation. Specifically, when an organization exhibits high levels of digital leadership, communication and coordination among members via digital technologies are more fluid. The integration of knowledge relevant to the organization’s existing innovations, acquired through network exploitation capability, is improved. This enhances the efficiency of routine replication, thereby fostering opportunity iteration under incremental innovation. Fatima (2024) [
76] indicates that the knowledge value perspective of digital leadership enhances knowledge sharing among team members, significantly promoting open innovation by strengthening knowledge sharing and improving innovation capabilities. Conversely, when an organization’s digital leadership is low, even if it acquires knowledge related to operations and process structures through network exploitation capability, the lack of a data-driven decision-making culture typically found in such organizations hampers the effective use of data analysis to optimize processes and identify new opportunities. This diminishes the positive effects of opportunity iteration. Wang, T. (2022) [
15] suggests that digital leadership conveys a digital vision to followers, empowering them with trust, tolerance, and respect. This motivates members to actively participate in building a unified digital organizational culture, which facilitates the effective application of digital technologies, promotes knowledge sharing and creation, and positively impacts exploratory innovation. The analysis suggests that digital leadership enhances the developmental impact of opportunity iteration, which is mediated by the replication of general routines through network exploitation capability. Consequently, this study proposes the following hypothesis:
Hypothesis 4a (H4a): Digital leadership positively moderates the mediating effect of general routines replication in promoting opportunity iteration through network exploitation capability, meaning stronger digital leadership strengthens the mediating role of general routines replication.
- (2)
The Moderating Effect of Digital Leadership on the Mediating Role of Replication of Flexible Routines
Based on the theoretical analysis presented, Hypothesis H2b posits that network exploration capability promotes opportunity iteration through the replication of flexible routines. Hypothesis H3b suggests that digital leadership moderates the relationship between flexible routines replication and opportunity iteration. This study integrates these perspectives to propose that digital leadership moderates the entire mediation mechanism involving network exploration capability, replication of flexible routines, and opportunity iteration, potentially exhibiting a moderated mediation effect. Specifically, when an organization has a high level of digital leadership, it establishes more integrated and networked relationships with partners and competitors [
77]. The increased looseness and permeability of organizational boundaries enhance innovative capabilities [
78]. When a company utilizes network exploration capabilities to acquire external information, the deconstruction and reorganization of implicit rules in the replication of flexible routines align better with organizational characteristics, stimulating the generation of innovative knowledge and facilitating opportunity upgrading in a digital environment. Benitez (2022) [
79] demonstrates that digital leadership promotes the development of a company’s digital platform capabilities, integrating knowledge from IT infrastructure, business processes, and data within internal and external networks, thereby enhancing the company’s innovation performance. Conversely, when an organization has low digital leadership, it often struggles to maintain an open, connected, and highly collaborative organizational culture [
77], making the company less sensitive to innovative behaviors. When startups bring in resources through network exploration capabilities, there is insufficient motivation to generate new capabilities through the replication of flexible routines, hindering the company’s opportunity iteration. Rudito (2017) [
80] points out that companies lacking digital leaders struggle to integrate digital capabilities into their culture and development, which is detrimental to organizational innovation. Therefore, based on the above analysis, digital leadership aids in the development of opportunity iteration by promoting network exploration capability through the replication of flexible routines. This study proposes the following hypothesis:
Hypothesis 4b (H4b): Digital leadership positively moderates the mediating effect of flexible routines replication in the relationship between network exploration capability and opportunity iteration. In other words, the stronger the digital leadership, the more enhanced the mediating role of flexible routines replication.
In summary, the theoretical model of this study is constructed as shown in
Figure 1.