The Automation–Augmentation Paradox in New Product Development: A Curvilinear Model of Digital Employee Adoption and Perceived Teamwork Performance

Abstract

This study investigates the paradoxical impact of AI-driven digital employees on the new product development project performance. Integrating sociotechnical systems and ambidexterity theory, we tested a moderated mediation model using three-wave, time-lagged survey data from 396 employees engaged in new product development projects. The findings reveal an inverted U-shaped relationship between digital employee adoption and perceived teamwork performance. This nonlinear effect is explained by the differential mediation of ambidextrous innovation. Digital employee adoption promotes exploitation linearly but has a curvilinear effect on exploration. Furthermore, customer participation in value cocreation strengthens the exploitation path while mitigating the potential negative effects on exploration.

Keywords

digital employee ambidextrous innovation perceived teamwork performance customer participation in value cocreation ambidextrous learning ambidexterity theory

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