Strategic Ambidexterity and MSME Performance: The Conditional Role of Banking Credit in Eastern Indonesia

DOI

10.2991/978-94-6239-709-5_152How to use a DOI?

Keywords

Strategic Ambidexterity; MSME Performance; Banking Credit Access; Moderation Analysis; Emerging Economy

Abstract

Micro, Small, and Medium Enterprises (MSMEs) serve as vital contributors to inclusive economic development, especially in emerging economies such as Indonesia. However, their strategic performance is often constrained by limited managerial capabilities and unequal access to formal banking credit. This study explores how strategic ambidexterity the balanced integration of exploitation and exploration strategies affects MSME performance in Eastern Indonesia, while examining the moderating role of banking credit access. Grounded in dynamic capability and contingency theories, this study surveyed 202 MSME owner/managers who had previously accessed formal banking loans. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) via SmartPLS. The results confirm that both exploitation and exploration significantly drive strategic ambidexterity, which in turn has a positive effect on MSME performance. However, the moderation analysis reveals a negative and significant interaction effect, indicating that banking credit, under certain conditions, may reduce rather than strengthen the benefits of ambidextrous strategies. This finding highlights a misalignment between credit mechanisms and MSME strategic execution. Theoretically, the study extends ambidexterity research into underdeveloped MSME ecosystems and introduces financial access as a boundary condition. Practically, the results call for banking institutions and policymakers to design more adaptive, strategy-aligned credit schemes to enhance MSME resilience and performance. Implications for theory and directions for future research are discussed.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Tri Adi Riyanto
AU  - Asty Almaida
PY  - 2026
DA  - 2026/06/20
TI  - Strategic Ambidexterity and MSME Performance: The Conditional Role of Banking Credit in Eastern Indonesia
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 2187
EP  - 2203
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_152
DO  - 10.2991/978-94-6239-709-5_152
ID  - Riyanto2026
ER  -