Siti Nurhasanah Putri Selayar. The Influence of Digital Capability on Ambidextrous Innovation through Knowledge Management with Knowledge Inertia as a Moderating Variable among Florist SMEs in Banjarmasin. Supervised by Dr. Hastin Umi Anisah, S.E., M.M. Keywords: Digital Capability, Knowledge Management, Knowledge Inertia, Ambidextrous Innovation, Florist SMEs. This study aims to analyze the influence of Digital Capability on Ambidextrous Innovation through Knowledge Management, with Knowledge Inertia as a moderating variable among florist SMEs in Banjarmasin City. The study was motivated by the importance of SMEs’ ability to respond to digital transformation, changing consumer preferences, and the need for continuous business innovation. Digital Capability is considered important for supporting the use of digital technology, while Knowledge Management plays a role in managing business knowledge to encourage innovation. Meanwhile, Knowledge Inertia represents an internal factor that may hinder the knowledge management process. This study employed a quantitative survey approach. The population consisted of active SME owners in the florist industry in Banjarmasin City. The sample comprised 60 respondents. Data were collected through questionnaires and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with the assistance of SmartPLS software. The results indicate that Digital Capability has a positive and significant effect on Ambidextrous Innovation. Digital Capability also has a positive and significant effect on Knowledge Management, and Knowledge Management, in turn, has a positive and significant effect on Ambidextrous Innovation. Furthermore, Knowledge Management has been shown to mediate the effect of Digital Capability on Ambidextrous Innovation. However, Knowledge Inertia has not been shown to moderate the relationship between Digital Capability and Knowledge Management. These findings indicate that digital capability and knowledge management are important factors in fostering ambidextrous innovation among florist SMEs in Banjarmasin City