Abstract
Negative electronic word-of-mouth (neWOM) is an important source of external feedback for firms’ innovation, especially for two distinct innovation modes, exploitative and exploratory innovation. Existing research remains limited in explaining when and how neWOM contributes to these outcomes and supports innovation ambidexterity. Therefore, this study aims to examine the effects of neWOM on exploitative and exploratory innovation and to assess whether consumers’ structural-hole positions in online networks condition these relationships. Using a panel dataset of 198 firm-year observations from Taiwan’s biotechnology industry, we apply Tobit regression analyses to test both direct and moderated effects. The results show that neWOM has a marginally significant positive effect on exploitative innovation but no significant direct effect on exploratory innovation. Importantly, structural holes significantly strengthen the influence of neWOM on both innovation types, with a stronger moderating effect for exploratory innovation. Overall, the findings indicate that firms can better achieve innovation ambidexterity by leveraging neWOM generated by consumers who bridge more structural holes, as such network positions enhance the informational value of digital feedback for both refinement and exploration.