SMEs Performance in Malaysia: The Role of Contextual Ambidexterity in Innovation Culture and Performance

Mohamad Rohieszan Ramdan, Nurul Ashykin Abd Aziz, Nor Liza Abdullah, Norsamsinar Samsudin, Gurcharanjit Singh Veer Singh, Thuraiya Zakaria, Nursyazwani Mohd Fuzi and Sharon Yong Yee Ong
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Mohamad Rohieszan Ramdan: Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia
Nurul Ashykin Abd Aziz: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Locked Bag 36, Pengkalan Chepa, Kota Bahru 16100, Kelantan, Malaysia
Nor Liza Abdullah: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
Norsamsinar Samsudin: Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia
Gurcharanjit Singh Veer Singh: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
Thuraiya Zakaria: Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia
Nursyazwani Mohd Fuzi: Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru 81310, Johor, Malaysia
Sharon Yong Yee Ong: Faculty of Humanities, Management and Science, Universiti Putra Malaysia Bintulu Campus, Bintulu 97008, Sarawak, Malaysia

Sustainability, 2022, vol. 14, issue 3, 1-18

Abstract: Small and medium-sized enterprises (SMEs) in both the industrial and service sectors have been identified as the drivers of Malaysia’s fast economic growth. However, SMEs are faced with an inherent issue of lack of resources and capabilities which constrains the ability of SMEs to improve performance. Due to this, it is critical for SMEs to understand and develop an important capability that supports them in facing a dynamic and competitive business environment. This study examines the mediating role of contextual ambidexterity as a dynamic capability in the relationship between innovation culture and SME performance. The online surveys were carried out starting from 5th July until 25th July 2021. A total of 277 SMEs in Selangor, Malaysia participated in this study and Covariance-Based Structural Equation modeling analysis was utilized to test the hypotheses. The findings show that in terms of direct relationships, innovation culture has a significant positive relationship with contextual ambidexterity, while innovation culture and contextual ambidexterity have a significant positive relationship with SME performance. The findings showed that contextual ambidexterity is significant as a mediator in the relationship between innovation culture and SME performance. This study makes an important contribution to the management field by highlighting the role of contextual ambidexterity, which is often the focus of large companies. These findings support the notion of dynamic capability that accentuates the importance of developing capabilities in dealing with dynamic and challenging situations.

Keywords: innovation culture; contextual ambidexterity; SMEs performance; Malaysia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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