Building strategic ambidexterity: the importance of networking capability and learning capability in SMEs
DOI:
https://doi.org/10.26661/2522-1566/2022-4/22-04Keywords:
networking capability, learning capability, strategic ambidexterity, SMEsAbstract
This research aims to evaluate the literature on strategic ambidexterity (SAY) by investigating how networking capability (NWC) influences learning capability (LNC) to leverage product and market activities. In addition, the effect of NWC and LNC on SAY is analyzed in terms of their interaction. Methodology: Owners/managers of Indonesian SMEs were surveyed to collect data. Based on a quantitative survey of 189 Indonesian SMEs using SMART PLS 3 and a bootstrapping procedure with a sample size of 5000, the validity of the hypotheses is tested. The findings revealed that NWC and LNC have a direct effect on SAY. The results also validate LNC's role as a mediator in the relationship between NWC and SAY. However, the empirical evidence is well established that NWC and LNC substantially contribute to improving Strategic Ambidexterity. There is a shortage of high-quality evidence demonstrating a connection between NWC, LNC, and SAY in the current body of knowledge, especially regarding SMEs. Consequently, this study suggests that SMEs should prioritize network development and adopt flexible strategies. Findings are discussed in terms of theory, methodology, and application.
JEL Classification: M2, M21
References
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Souza, C. P. da S., & Takahashi, A. R. W. (2019). Dynamic capabilities, organizational learning and ambidexterity in a higher education institution. Learning Organization, 26(4), 397–411. https://doi.org/10.1108/TLO-03-2018-0047
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Teece, D. J., Pisano, G., & Shuen, A. (2009). Dynamic capabilities and strategic management. Knowledge and Strategy, 18(April 1991), 77–116. https://doi.org/10.1093/0199248540.003.0013
Teo, H.-H., Wang, X., Wei, K.-K., Sia, C.-L., & Lee, M. K. O. (2006). Organizational Learning Capacity and Attitude Toward Complex Technological Innovations: An Empirical Study. Journal of the American Society for Information Science and Technology, 57–2(July), 264–279. https://doi.org/10.1002/asi
Tidd, J., Bessant, J., & Pavitt, K. (2013). Managing innovation: Integrating technological, organizational and market change.
Tsai, H. T., & Ren, S. (2019). Antecedents of strategic ambidexterity in the context of internationalisation: a panel study of Taiwan Small and median-sized enterprises. Technology Analysis and Strategic Management, 31(8), 986–1001. https://doi.org/10.1080/09537325.2019.1582764
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Zacca, R., Dayan, M., & Ahrens, T. (2015). Impact of network capability on small business performance. Management Decision, 53(1), 2–23. https://doi.org/10.1108/MD-11-2013-0587
Cheng, C. C. J., & Sheu, C. (2018). Enhancing radical innovation: the interplays of open innovation activities, firm capabilities, and environmental dynamism. Asian Journal of Technology Innovation, 26(3), 369–397. https://doi.org/10.1080/19761597.2018.1555001
Chiva, R., Alegre, J., & Lapiedra, R. (2007). Measuring organisational learning capability among the workforce. International Journal of Manpower, 28(3–4), 224–242. https://doi.org/10.1108/01437720710755227
Dhir, S., Ongsakul, V., & Batra, I. (2018). Comprehending ambidexterity in the emerging-market context: The moderating role of learning capability and environmental dynamism on e-commerce firms’ performance. Journal for Global Business Advancement, 11(4), 395–417. https://doi.org/10.1504/JGBA.2018.097197
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121.
Garousi Mokhtarzadeh, N., Amoozad Mahdiraji, H., Jafarpanah, I., Jafari-Sadeghi, V., & Cardinali, S. (2020). Investigating the impact of networking capability on firm innovation performance: using the resource-action-performance framework. Journal of Intellectual Capital, 21(6), 1009–1034. https://doi.org/10.1108/JIC-01-2020-0005
Gibson, C. B., & Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal, 47(2), 209–226. https://doi.org/10.2307/20159573
He, Z. L., & Wong, P. K. (2004). Exploration vs. exploitation: An empirical test of the ambidexterity hypothesis. Organization Science, 15(4), 481–495. https://doi.org/10.1287/orsc.1040.0078
Huggins, R., & Thompson, P. (2017). Entrepreneurial networks and open innovation: the role of strategic and embedded ties. Industry and Innovation, 24(4), 403–435.
Julian, C. C., & Xu, J. (2015). International joint venture marketing performance in China: a resource-based approach. Journal for Global Business Advancement, 8(4), 420–435.
Kale, P., Singh, H., & Perlmutter, H. (2000). Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management Journal, 21(3), 217–237.
Karami, M., & Tang, J. (2019). Entrepreneurial orientation and SME international performance: The mediating role of networking capability and experiential learning. International Small Business Journal: Researching Entrepreneurship, 37(2), 105–124. https://doi.org/10.1177/0266242618807275
Kazmi, S., Kanwal, F., Rathore, K., Faheem, K., & Fatima, A. (2021). The Relationship Between Transformational Leadership and Organisational Learning Capability with the Mediating Role of Perceived Human Resource Effectiveness. South Asian Journal of Human Resources Management, 8(1), 133–157. https://doi.org/10.1177/2322093721997197
Khan, Z., Amankwah-Amoah, J., Lew, Y. K., Puthusserry, P., & Czinkota, M. (2022). Strategic ambidexterity and its performance implications for emerging economies multinationals. International Business Review, 31(3), 101762. https://doi.org/10.1016/j.ibusrev.2020.101762
Lin, H. E., McDonough, E. F., Lin, S. J., & Lin, C. Y. Y. (2013). Managing the exploitation/exploration paradox: The role of a learning capability and innovation ambidexterity. Journal of Product Innovation Management, 30(2), 262–278. https://doi.org/10.1111/j.1540-5885.2012.00998.x
Lubatkin, M. H., Simsek, Z., Ling, Y., & Veiga, J. F. (2006). Ambidexterity and performance in small-to medium-sized firms: The pivotal role of top management team behavioral integration. Journal of Management, 32(5), 646–672. https://doi.org/10.1177/0149206306290712
Majid, A., Yasir, M., Yasir, M., & Yousaf, Z. (2021). Network capability and strategic performance in SMEs: the role of strategic flexibility and organizational ambidexterity. Eurasian Business Review, 11(4), 587–610. https://doi.org/10.1007/s40821-020-00165-7
Martín Martín, O., Chetty, S., & Bai, W. (2022). Foreign market entry knowledge and international performance: The mediating role of international market selection and network capability. Journal of World Business, 57(2), 101266. https://doi.org/10.1016/j.jwb.2021.101266
Mei, L., Rentocchini, F., & Chen, J. (2021). Antecedents of strategic ambidexterity in firms’ product innovation: External knowledge and internal information sharing. Journal of Small Business Management, 00(00), 1–30. https://doi.org/10.1080/00472778.2021.1944635
Mirzanti, I. R., Simatupang, T. M., & Larso, D. (2015). Mapping on Entrepreneurship Policy in Indonesia. Procedia - Social and Behavioral Sciences, 169(August 2014), 346–353. https://doi.org/10.1016/j.sbspro.2015.01.319
Mu, J., Thomas, E., Peng, G., & Di Benedetto, A. (2017). Strategic orientation and new product development performance: The role of networking capability and networking ability. Industrial Marketing Management, 64, 187–201. https://doi.org/10.1016/j.indmarman.2016.09.007
Partanen, J., Kohtamäki, M., Patel, P. C., & Parida, V. (2020). Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow. International Journal of Production Economics, 221(August 2018), 107470. https://doi.org/10.1016/j.ijpe.2019.08.005
Provan, K. G., Fish, A., & Sydow, J. (2007). Interorganizational networks at the network nevel: A review of the empirical literature on whole networks. Journal of Management, 33(3), 479–516. https://doi.org/10.1177/0149206307302554
Salas Vallina, A., Moreno-Luzon, M. D., & Ferrer-Franco, A. (2019). The individual side of ambidexterity: Do inspirational leaders and organizational learning resolve the exploitation-exploration dilemma? Employee Relations, 41(3), 592–613. https://doi.org/10.1108/ER-02-2018-0050
Simsek, Z. (2009). Organizational ambidexterity: Towards a multilevel understanding. Journal of Management Studies, 46(4), 597–624. https://doi.org/10.1111/j.1467-6486.2009.00828.x
Souza, C. P. da S., & Takahashi, A. R. W. (2019). Dynamic capabilities, organizational learning and ambidexterity in a higher education institution. Learning Organization, 26(4), 397–411. https://doi.org/10.1108/TLO-03-2018-0047
Tambunan, T. (2007). Entrepreneurship Development: Smes in Indonesia. Journal of Developmental Entrepreneurship, 12(01), 95–118. https://doi.org/10.1142/s1084946707000575
Teece, D. J., Pisano, G., & Shuen, A. (2009). Dynamic capabilities and strategic management. Knowledge and Strategy, 18(April 1991), 77–116. https://doi.org/10.1093/0199248540.003.0013
Teo, H.-H., Wang, X., Wei, K.-K., Sia, C.-L., & Lee, M. K. O. (2006). Organizational Learning Capacity and Attitude Toward Complex Technological Innovations: An Empirical Study. Journal of the American Society for Information Science and Technology, 57–2(July), 264–279. https://doi.org/10.1002/asi
Tidd, J., Bessant, J., & Pavitt, K. (2013). Managing innovation: Integrating technological, organizational and market change.
Tsai, H. T., & Ren, S. (2019). Antecedents of strategic ambidexterity in the context of internationalisation: a panel study of Taiwan Small and median-sized enterprises. Technology Analysis and Strategic Management, 31(8), 986–1001. https://doi.org/10.1080/09537325.2019.1582764
Voss, G. B., & Voss, Z. G. (2013). Strategic ambidexterity in small and medium-sized enterprises: Implementing exploration and exploitation in product and market domains. Organization Science, 24(5), 1459–1477. https://doi.org/10.1287/orsc.1120.0790
Zacca, R., Dayan, M., & Ahrens, T. (2015). Impact of network capability on small business performance. Management Decision, 53(1), 2–23. https://doi.org/10.1108/MD-11-2013-0587
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Published
2022-12-20
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Management
How to Cite
Yunita, T. (2022) “Building strategic ambidexterity: the importance of networking capability and learning capability in SMEs”, Management and Entrepreneurship: Trends of Development, 4(22), pp. 50–59. doi:10.26661/2522-1566/2022-4/22-04.
