Implications of contextual ambidexterity and digital platform capability on SME performance :the role of absorptive capacity as a moderator
Contextual ambidexterity and digital platform capability can help SMEs achieve long-term success. However, achieving a balance between exploration and exploitation of contextual ambidexterity for integrating and reconfiguring organisations using digital platform capability is challenging to SMEs...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2024
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| Online Access: | http://journalarticle.ukm.my/24749/1/Pengurusan_71_5.pdf http://journalarticle.ukm.my/24749/ https://www.ukm.my/jurnalpengurusan/volume-main/vol71/ |
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| Summary: | Contextual ambidexterity and digital platform capability can help SMEs achieve long-term success. However,
achieving a balance between exploration and exploitation of contextual ambidexterity for integrating and
reconfiguring organisations using digital platform capability is challenging to SMEs. The inherent disadvantage
of size and lack of resources plaguing SMEs limits their market competitiveness. In this digital age, it is pertinent
for SMEs to focus on capabilities development, especially capabilities that can leverage digital infrastructure to
compensate for resource deficiencies. To address this issue, this study examines the implications of contextual
ambidexterity and digital platform capability on SMEs performance, and the role of absorptive capacity as a
moderator. Using a quantitative method, 157 responses from Malaysian SME managers were analysed using
PROCESS Macro. The results show that both contextual ambidexterity and digital platform capability have
positive relationships with SME performance, while absorptive capacity positively moderates the relationship
between contextual ambidexterity and digital platform capability, enhancing SMEs performance. Overall, this
study contributes to the current literature by highlighting contextual ambidexterity and digital platform
capabilities as critical dynamic capabilities for SMEs. The findings demonstrate that organisational learning
elements represented by absorptive capacity could strengthen the interplay of dynamic capabilities to achieve the
competitive advantage. This study can also help SME managers in developing countries to develop strategic
actions to achieve superior performance through continuous and sustainable learning, as well as provide some
suggestions for future research. |
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