The Structural Dimensions of Involution Competition among Enterprises and Its Impact on Ambidextrous Innovation

In recent years, the global economic landscape has become increasingly complex, and domestic market demand in China has declined, leading to a growing trend of “involution-type” competition among Chinese enterprises. Such competition not only reduces overall industry efficiency but also severely restricts firms’ innovation capabilities. Against this backdrop, this study explores the impact mechanisms of involution-type competition on ambidextrous innovation—comprising exploratory and exploitative innovation. Drawing on existing research, the study conceptualizes involution-type competition as consisting of four dimensions: inefficient input, short-term orientation, homogeneous behavior, and disorderly competition. The findings indicate that these behaviors have complex and differentiated effects on ambidextrous innovation. While some aspects may marginally promote short-term exploitative innovation, they tend to significantly inhibit long-term exploratory innovation, thereby undermining firms’ sustainable competitiveness. Based on these insights, the paper proposes strategic and policy recommendations to mitigate involution-type competition and balance short-term gains with long-term innovation, offering theoretical grounding and practical guidance for enterprise transformation and industrial environment optimization.