The Role of Ambidexterity Dimension in Mediating the Influence of Entrepreneurial Orientation on Business Performance in SMEs

DOI

10.2991/978-94-6463-862-2_2How to use a DOI?

Keywords

Organizational Ambidexterity; Exploitation; Exploration; Entrepreneurial Orientation; Business Performance; SMEs

Abstract

This study investigates the mediating role of organizational ambidexterity in the relationship between entrepreneurial orientation and business performance among small and medium enterprises (SMEs) in the Kedu Residency, Central Java, Indonesia. The approach used in this study is a qualitative descriptive analysis approach. In this study, the researcher conducted an investigation to describe the Business Performance of SMEs driven by entrepreneurial orientation through ambidexterity, with dimensions of exploration and exploitation, in SMEs located in the Kedu Residency, Central Java Province. The findings are expected to firmly reveal that organizational ambidexterity plays a significant mediating role in strengthening the relationship between entrepreneurial orientation and business performance. SMEs that adopt an ambidextrous strategy are expected to show significantly superior performance results compared to their counterparts that do not integrate the approach. In the dynamic and often unstable environment that characterizes developing economies, the ability of organizations to simultaneously explore new opportunities while exploiting existing capabilities emerges as an important determinant of sustainable success. This study offers practical insights for SMEs practitioners, highlighting the need to embed an ambidextrous framework in business models to enhance competitiveness, agility, and resilience in increasingly complex and unpredictable markets.

Copyright

© 2025 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  - M. Trihudiyatmanto
AU  - Bahtiar Efendi
AU  - Agus Putranto
AU  - Heri Purwanto
PY  - 2025
DA  - 2025/10/27
TI  - The Role of Ambidexterity Dimension in Mediating the Influence of Entrepreneurial Orientation on Business Performance in SMEs
BT  - Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025)
PB  - Atlantis Press
SP  - 3
EP  - 11
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-862-2_2
DO  - 10.2991/978-94-6463-862-2_2
ID  - Trihudiyatmanto2025
ER  -