Building strategic ambidexterity: the importance of networking capability and learning capability in SMSs

Abstract

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.

Keywords

• networking capability
• learning capability
• strategic ambidexterity
• smes