Purpose This study aims to analyze the mediating effect of the open innovation processes of knowledge acquisition and exploitation as external embeddedness strategy on the relationships between strategic orientation toward digitalization and the three dimensions of the innovation capability: client, marketing and technology. Design/methodology/approach The research model was tested using a structural equation modeling design based on survey data from a financial and insurance sector multinational enterprise with direct operations in seven emerging countries. This sector is classified as being highly digitalized. Findings The results show that strategic orientation toward digitalization has an effect on innovation capability, with a greater impact on the client and technology dimensions than on the marketing dimension. However, the relationships with clients and technology are partially mediated by acquisition, while the one with marketing is mediated by exploitation. Originality/value This finding widens the current purpose and theoretical sense of external embeddedness as a type of inter-organizational arrangement key for digitalization in the literature, which is focused on the adaptation of digital technology of the head office to the needs of the subsidiaries and the systems of their local allies. By contrast, the study results show that external embeddedness is key for the multinational to be able, from its global way of creating value through digital technologies, not only to improve operating efficiency, but also to meet costumer experience expectations in each host country and innovate in local commercialization strategies, on account of the knowledge transfer between the multinational and the local players on customer preferences and technology uses in local markets.

PurposeThis paper aims to analyze the moderating effect of technological turbulence caused by artificial intelligence on the relationship between the traditional knowledge management strategies of personalization (tacit knowledge) and codification (explicit knowledge), and organizational improvisation, which refers to the firm's ability to generate ideas and respond to changes in the technological environment in real time. Until now, individuals have played a key and indispensable role in organizational improvisation since they are the owners of tacit knowledge and users of explicit knowledge.Design/methodology/approachThe research model was tested in a sample of firms from sectors in which the adoption of intelligent robots is growing.FindingsBoth personalization and codification have a positive and significant influence on improvisation, the former to a greater extent. Nevertheless, when technological turbulence caused by artificial intelligence occurs, the relationship between personalization and improvisation is weakened, whereas the link between codification and improvisation is strengthened.Originality/valueContrary to the pre-digital literature consensus, explicit knowledge is becoming the new major driver of organizational improvisation, while tacit knowledge sharing is losing strength and relevance. This finding may be a first indication that intelligent robots are the new exponents of improvisation for their ability to respond to changes in the environment in real time because of a combination of explicit knowledge, beyond being a mere support tool for humans.