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Ambidexterity and innovation in cluster SMEs: evidence from Indonesian manufacturing

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  • Jojo Jacob
  • Maggie-Qiuzhu Mei
  • Theresia Gunawan
  • Geert Duysters

Abstract

Resource constraints are widely regarded as a major barrier for small and medium-sized enterprises (SMEs) to achieve ambidexterity. While operating in a cluster may help SMEs alleviate resource constraints, it also creates the risk of over embeddedness within the cluster whereby firms focus excessively on exploitation that hampers their ability to achieve ambidexterity. We propose that cluster SMEs with risk-taking orientation and that pursue knowledge search beyond cluster boundaries can overcome over embeddedness within their clusters and achieve ambidexterity. We further suggest that ambidexterity can be a critical competence for SMEs to realise superior innovation performance. Analysis of data gathered through face-to-face interviews and questionnaires from 109 owner-managers of SMEs in a footwear manufacturing cluster in Indonesia support these predictions. Extra-cluster ties and risk taking are critical antecedents of ambidexterity in cluster SMEs. Further, ambidexterity mediates the effects of risk taking fully, and extra-cluster ties partially, on SMEs’ innovation performance.

Suggested Citation

  • Jojo Jacob & Maggie-Qiuzhu Mei & Theresia Gunawan & Geert Duysters, 2022. "Ambidexterity and innovation in cluster SMEs: evidence from Indonesian manufacturing," Industry and Innovation, Taylor & Francis Journals, vol. 29(8), pages 948-968, September.
    • Handle: RePEc:taf:indinn:v:29:y:2022:i:8:p:948-968
    DOI: 10.1080/13662716.2022.2072712
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