Balancing exploitation and exploration: An ambidextrous resilience framework for green innovation in carbon-intensive industries

Abstract

Achieving net-zero emissions is a major challenge for carbon-intensive industries. When facing strict environmental regulations, these firms face a severe survival paradox. If they immediately abandon their traditional high-carbon equipment to pursue radical green technologies, they risk breaking their cash flow. However, if they rely on their old assets and ignore green innovation, they will lose future market competitiveness. Existing literature often overlooks this structural tension, broadly advising heavy manufacturers to transition quickly. To solve this paradox, this paper introduces the theory of organisational ambidexterity. We propose that carbon-intensive firms develop ambidextrous resilience by simultaneously balancing green exploitation and green exploration. Green exploitation allows firms to ensure short-term compliance and financial stability. Green exploration enables firms to test and adopt radical low-carbon technologies for long-term strategic renewal. By balancing these two conflicting forces, firms can safely cross the dangerous gap between their high-carbon history and a low-carbon future. Unlike prior conceptual studies that broadly prescribe green innovation, this paper provides a micro-foundational mechanism detailing how organizations structurally and financially transition, offering a novel extension to environmental ambidexterity literature.