More structure or better social practices? Using a contingency lens to address ambidexterity gaps in innovative SMEs
Carolina Rojas-Córdova,
Julio A. Pertuze,
Amanda Williamson and
Michael Leatherbee
International Journal of Emerging Markets, 2022, vol. 18, issue 12, 5581-5606
Abstract:
Purpose - Environmental uncertainty (EU) and firm size (FS) generate inertial forces that can push small and medium-sized enterprises (SMEs) to emphasize either exploration or exploitation. In this article, the authors explore how structural (e.g. formal processes, control and discipline) and social (e.g. employee support and decision-making involvement) managerial instruments counteract such inertial forces and enable SME ambidexterity. Building on the organization-context literature, the authors propose a model in which EU and firms' size moderate the relationship between structural and social managerial instruments on SME ambidexterity. Design/methodology/approach - The authors examined a moderation model using surveys of chief executive officers (CEOs) and performance archival data from 237 Chilean SMEs. Findings - The authors find that the positive effect of structure on SME ambidexterity decreases with FS. In contrast, social instruments have a positive effect on ambidexterity for larger firms, especially for those operating in uncertain environments. In cases in which EU and firms' size reinforce the exploration or exploitation tendencies of SMEs, structural and social instruments play a complementary role in achieving ambidexterity. Originality/value - The authors contribute by proposing a contingent mix of structural and social instruments to enable SME ambidexterity. These results inform policymakers and SME managers by suggesting strategies to promote ambidexterity based on firms' size and EU.
Keywords: Ambidexterity; Environmental uncertainty; Firm size; Contingency theory; SMEs; Chile (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-04-2021-0572
DOI: 10.1108/IJOEM-04-2021-0572
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