“…For SMEs, this study contends that ambidextrous innovation is inherently complex and involves nested levels of a causal system (March, 1991;Sun et al, 2023;Zimmermann et al, 2020). In this vein, resting on secondary data of 69 Chinese "Specialized, Advanced, Differentiated, and Innovative" (SADI) firms, we use fuzzy-set qualitative comparative analysis (fsQCA) to examine the complex causal relationships between owner openness, age, digital transformation, formal institutional environment and informal institutional environment and their impact on innovation ambidexterity (Fiss, 2011;Ragin and Fiss, 2017).…”