The Impact of Absorptive Capacity, Information Technology Capability on Innovation Ambidexterity for Sustained Performance Febi Wilona
Universitas Negeri Jakarta
Jl. Rawamangun Muka, RT.11/RW.14, Rawamangun, Pulo Gadung, East Jakarta City, Special Capital Region of Jakarta 13220
Abstract
The purpose of this study is to investigate the effect of technological, organizational and environmental factors on innovation ambidexterity and its influence on the performance of manufacturing small- and medium-sized enterprises (SMEs) as well as the moderating effect environmental dynamism on this relationship.
This paper develops and tests a research model by considering literature that covers TOE antecedents, environmental moderators and performance outcomes of organizational and innovation ambidexterity which analyzes the network of relations using covariance-based structural equation modeling on a data set of 200 Indonesia SMEs.
The result of this study shows that information technology capability, absorptive capacity and environmental dynamism are positively associated with innovation ambidexterity. In addition, environmental dynamism is found to strengthen the positive effect of innovation ambidexterity on firm performance.
The study findings support the idea that innovation can be developed in an ambidextrous manner within a single SME as long as the firm is capable of creating a suitable organizational context and giving a prompt response to changes in the business environment. This paper extends prior literature by analyzing antecedents and outcomes of innovation ambidexterity in manufacturing SMEs.
