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Purpose

While the integration of artificial intelligence (AI) offers new avenues for employee creativity, its effectiveness remains debated. Specifically, translating the frequent updates of diverse AI applications into tangible creative outputs is challenging. Grounded in the theory of dynamic capabilities, this study investigates the micro-mechanisms through which employees' AI application portfolio update capabilities drive creativity. We elucidate how intellectual capital mediates this relationship by bridging cognitive gaps, and how ambidextrous leadership moderates it by alleviating cognitive tension.

Design/methodology/approach

We conducted a three-wave longitudinal survey method with 1.5-month intervals, yielding 307 valid responses from employees in China's Yangtze River Delta smart manufacturing sector. Structural equation modeling (SEM) with bootstrapping was used to test mediation, while hierarchical regression analysis assessed moderation effects.

Findings

Our findings demonstrate that the capability to update AI application portfolios significantly enhances employee creativity. This relationship is partially mediated by three dimensions of intellectual capital: renewal, structural and human capital. Furthermore, both open and closed leadership positively moderate this relationship.

Originality/value

By extending the concept of AI application portfolio update capabilities to the individual level, this research broadens the scope of dynamic capabilities theory. It maps the transformation of AI from a mere technical tool into a cognitive catalyst. Practically, the findings offer managers actionable strategies to systematically cultivate employee technological capabilities, optimize intellectual capital and deploy context-adaptive ambidextrous leadership in the AI era.

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