Organizational learning ambidexterity and openness, as determinants of SMEs' innovation performance

• Published in: European journal of innovation management Vol. 24; no. 2; pp. 414 - 438
• Main Authors: Tian, Hongyun, Dogbe, Courage Simon Kofi, Pomegbe, Wisdom Wise Kwabla, Sarsah, Sampson Ato, Otoo, Charles Oduro Acheampong
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 18.05.2021; Emerald Group Publishing Limited
• Subjects: Competition; Competitive advantage; Empirical analysis; Exploitation; Innovations; Knowledge; Learning; Organizational aspects; Organizational learning; Product life cycle; Reliability analysis; Small & medium sized enterprises-SME; Small business; Success; Exploratory learning; Ambidexterity; Innovation performance; Organizational learning; Exploitative learning; Open innovation
• ISSN: 1460-1060; 1758-7115
• DOI: 10.1108/EJIM-05-2019-0140

PurposeSMEs could achieve their innovation goals, either through exploitation, exploratory, or ambidextrous learning strategies. This study presents ambidexterity as a more effective and efficient strategy that offers superior innovation advantage to SMEs. We also present the role of openness in this relationship.Design/methodology/approachEmpirical analysis was based on 388 SMEs in Ghana. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using Ordinary Least Squares approach, run using SPSS (v. 20).FindingsFindings indicate that although exploitative and exploratory learning strategies individually had a positive significant effect on SMEs' innovation performance, organizational learning ambidexterity was found to have a greater positive impact on innovation performance among SMEs. High levels of openness further boosted the effect of organizational learning ambidexterity on SMEs’ innovation performance.Research limitations/implicationsThis study was conducted without recourse to some specific factors that could influence organizational learning ambidexterity among SMEs. Future studies should thus pay particular attention to the determinants of organizational learning ambidexterity among SMEs.Practical implicationsInnovation performance is very critical for the sustainability of firms, and SMEs in particular. Management of SMEs must therefore seek to simultaneously adopt both learning strategies, as that gives firms greater advantage, compared to the adoption of only one strategy.Originality/valueThe study demonstrates that organizational learning ambidexterity had a superior effect on SMEs' innovation performance. High levels of openness further boosted the effect of organizational learning ambidexterity on SMEs' innovation performance.