IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i16p12665-d1221895.html
   My bibliography  Save this article

The Impact of Proactive Resilience Strategies on Organizational Performance: Role of Ambidextrous and Dynamic Capabilities of SMEs in Manufacturing Sector

Author

Listed:
  • Thillai Raja Pertheban

    (Graduate School of Business, Research and Innovation Management Centre (RIMC), Segi University, Petaling Jaya 47810, Malaysia)

  • Ramayah Thurasamy

    (School of Management, Universiti Sains Malaysia (USM), Gelugor 11800, Malaysia
    Department of Information Technology and Management, Daffodil International University, Dhaka 1216, Bangladesh
    Department of Management, Sunway University Business School, Petaling Jaya 47500, Malaysia
    University Center for Research & Development (UCRD), Chandigarh University (CU), Chandigarh 140413, India)

  • Anbalagan Marimuthu

    (Graduate School of Business, Research and Innovation Management Centre (RIMC), Segi University, Petaling Jaya 47810, Malaysia)

  • Kumara Rajah Venkatachalam

    (Graduate School of Business, Research and Innovation Management Centre (RIMC), Segi University, Petaling Jaya 47810, Malaysia)

  • Sanmugam Annamalah

    (Graduate School of Business, Research and Innovation Management Centre (RIMC), Segi University, Petaling Jaya 47810, Malaysia)

  • Pradeep Paraman

    (Graduate School of Business, Research and Innovation Management Centre (RIMC), Segi University, Petaling Jaya 47810, Malaysia)

  • Wong Chee Hoo

    (Faculty of Business and Communication, INTI International University, Nilai 71800, Malaysia)

Abstract

The challenges of the global business environment foster small medium-sized enterprises (SMEs) to continuously improve their performance in the level of vulnerability to possible impacts and interruptions in their operations that may affect their sustainability. Resilience strategies and ambidextrous capabilities have become important determinants of organizational performance, which has developed as an emerging area of interest in supply chain management in recent years. SMEs are one of the major contributing sectors to the Malaysian economy. Therefore, SMEs have been forced to survive in the current market situation to ensure higher economic growth and competitiveness. The resilience strategies and ambidexterity capabilities are important determinants of SMEs’ performance. As such, this study aims to examine the relationship between proactive resilience strategies, ambidextrous capabilities, and the performance of SMEs in the manufacturing sector, drawing on the dynamic capabilities perspective. A quantitative research design is adopted, a structured survey questionnaire is used, and data are collected from 351 SMEs in the manufacturing sector. Partial least squares structural equation modeling (PLS-SEM), Smart PLS 3.0 is used to test both direct and mediating results. The findings of this study suggested that proactive resilience strategies may have a significant influence on organizational performance of SMEs. Ambidextrous capabilities also act as a strong mediator between proactive resilience strategies and organizational performance. These findings contribute to the dynamic capabilities literature by highlighting the importance of proactive resilience strategies and ambidextrous capabilities in enhancing the positive impact on organizational performance in SMEs. This study provides a plausible explanation of two important management mechanisms for enhancing organizational performance sustainability. The relationships between proactive resilience strategies, ambidextrous capabilities, and organizational performance are malleable. This study also suggests that fostering formal and informal relationships might hold the key to the sustainable performance of SMEs in the long term. This study’s practical contributions are improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and enhancing their competitive power in domestic and international markets.

Suggested Citation

  • Thillai Raja Pertheban & Ramayah Thurasamy & Anbalagan Marimuthu & Kumara Rajah Venkatachalam & Sanmugam Annamalah & Pradeep Paraman & Wong Chee Hoo, 2023. "The Impact of Proactive Resilience Strategies on Organizational Performance: Role of Ambidextrous and Dynamic Capabilities of SMEs in Manufacturing Sector," Sustainability, MDPI, vol. 15(16), pages 1-32, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12665-:d:1221895
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/16/12665/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/16/12665/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barbara Ocicka & Wioletta Mierzejewska & Jakub Brzeziński, 2022. "Correction: Creating supply chain resilience during and post-COVID-19 outbreak: the organizational ambidexterity perspective," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(3), pages 361-361, September.
    2. Ojha, Divesh & Acharya, Chandan & Cooper, Danielle, 2018. "Transformational leadership and supply chain ambidexterity: Mediating role of supply chain organizational learning and moderating role of uncertainty," International Journal of Production Economics, Elsevier, vol. 197(C), pages 215-231.
    3. Zhengang Zhang & Yu Shang & Linyuan Cheng & Antao Hu, 2022. "Big Data Capability and Sustainable Competitive Advantage: The Mediating Role of Ambidextrous Innovation Strategy," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    4. Gomes, Paulo J. & Silva, Graça Miranda & Sarkis, Joseph, 2020. "Exploring the relationship between quality ambidexterity and sustainable production," International Journal of Production Economics, Elsevier, vol. 224(C).
    5. Arzubiaga, Unai & Kotlar, Josip & De Massis, Alfredo & Maseda, Amaia & Iturralde, Txomin, 2018. "Entrepreneurial orientation and innovation in family SMEs: Unveiling the (actual) impact of the Board of Directors," Journal of Business Venturing, Elsevier, vol. 33(4), pages 455-469.
    6. Alfalla-Luque, Rafaela & Machuca, José A.D. & Marin-Garcia, Juan A., 2018. "Triple-A and competitive advantage in supply chains: Empirical research in developed countries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 48-61.
    7. Yu, Wantao & Jacobs, Mark A. & Chavez, Roberto & Yang, Jiehui, 2019. "Dynamism, disruption orientation, and resilience in the supply chain and the impacts on financial performance: A dynamic capabilities perspective," International Journal of Production Economics, Elsevier, vol. 218(C), pages 352-362.
    8. Bashaer Almatrooshi & Sanjay Kumar Singh & Sherine Farouk, 2016. "Determinants of organizational performance: a proposed framework," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(6), pages 844-859, July.
    9. Barbara Ocicka & Wioletta Mierzejewska & Jakub Brzeziński, 2022. "Creating supply chain resilience during and post-COVID-19 outbreak: the organizational ambidexterity perspective," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(1), pages 129-151, March.
    10. Ramezani, Javaneh & Camarinha-Matos, Luis M., 2020. "Approaches for resilience and antifragility in collaborative business ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    11. Mammassis, Constantinos S. & Kostopoulos, Konstantinos C., 2019. "CEO goal orientations, environmental dynamism and organizational ambidexterity: An investigation in SMEs," European Management Journal, Elsevier, vol. 37(5), pages 577-588.
    12. Mohamad Rohieszan Ramdan & Nurul Ashykin Abd Aziz & Nor Liza Abdullah & Norsamsinar Samsudin & Gurcharanjit Singh Veer Singh & Thuraiya Zakaria & Nursyazwani Mohd Fuzi & Sharon Yong Yee Ong, 2022. "SMEs Performance in Malaysia: The Role of Contextual Ambidexterity in Innovation Culture and Performance," Sustainability, MDPI, vol. 14(3), pages 1-18, February.
    13. Jaisy Aghniarahim Putritamara & Budi Hartono & Hery Toiba & Hamidah Nayati Utami & Moh Shadiqur Rahman & Dewi Masyithoh, 2023. "Do Dynamic Capabilities and Digital Transformation Improve Business Resilience during the COVID-19 Pandemic? Insights from Beekeeping MSMEs in Indonesia," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    14. Bashaer Almatrooshi & Sanjay Kumar Singh & Sherine Farouk, 2016. "Determinants of organizational performance: a proposed framework," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(6), pages 844-859, July.
    15. John H. Dunning & Sarianna M. Lundan, 2010. "The institutional origins of dynamic capabilities in multinational enterprises -super-†," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1225-1246, August.
    16. Benzidia, Smaïl & Makaoui, Naouel & Subramanian, Nachiappan, 2021. "Impact of ambidexterity of blockchain technology and social factors on new product development: A supply chain and Industry 4.0 perspective," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    17. Constantine Andriopoulos & Marianne W. Lewis, 2009. "Exploitation-Exploration Tensions and Organizational Ambidexterity: Managing Paradoxes of Innovation," Organization Science, INFORMS, vol. 20(4), pages 696-717, August.
    18. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    19. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    20. Wu, Qihan & Yan, Dong & Umair, Muhammad, 2023. "Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1103-1114.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahmoud Barakat & Jialin Snow Wu & Nicoleta Tipi, 2023. "Empowering Clusters: How Dynamic Capabilities Drive Sustainable Supply Chain Clusters in Egypt," Sustainability, MDPI, vol. 15(24), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Úbeda-García, Mercedes & Claver-Cortés, Enrique & Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio, 2020. "Toward a dynamic construction of organizational ambidexterity: Exploring the synergies between structural differentiation, organizational context, and interorganizational relations," Journal of Business Research, Elsevier, vol. 112(C), pages 363-372.
    2. Wang, Canhao & Jiao, Hao & Song, Jiayi, 2023. "Wear glasses for supervisors to discover the beauty of subordinates: Supervisor developmental feedback and organizational ambidexterity," Journal of Business Research, Elsevier, vol. 158(C).
    3. Asif Khan & Chih-Cheng Chen & Kuan-Hua Lu & Ardy Wibowo & Shih-Chih Chen & Athapol Ruangkanjanases, 2021. "Supply Chain Ambidexterity and Green SCM: Moderating Role of Network Capabilities," Sustainability, MDPI, vol. 13(11), pages 1-13, May.
    4. Mahmoud Abou Kamar & Omaima Munawar Albadry & Samar Sheikhelsouk & Mohammed Hasan Ali Al-Abyadh & Omar Alsetoohy, 2023. "Dynamic Capabilities Influence on the Operational Performance of Hotel Food Supply Chains: A Mediation-Moderation Model," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    5. Muhammad Adeel Munir & Amjad Hussain & Muhammad Farooq & Muhammad Salman Habib & Muhammad Faisal Shahzad, 2023. "Data-Driven Transformation: The Role of Ambidexterity and Analytics Capability in Building Dynamic and Sustainable Supply Chains," Sustainability, MDPI, vol. 15(14), pages 1-37, July.
    6. Rintala, Oskari & Laari, Sini & Solakivi, Tomi & Töyli, Juuso & Nikulainen, Reetta & Ojala, Lauri, 2022. "Revisiting the relationship between environmental and financial performance: The moderating role of ambidexterity in logistics," International Journal of Production Economics, Elsevier, vol. 248(C).
    7. Wamba, Samuel Fosso & Dubey, Rameshwar & Gunasekaran, Angappa & Akter, Shahriar, 2020. "The performance effects of big data analytics and supply chain ambidexterity: The moderating effect of environmental dynamism," International Journal of Production Economics, Elsevier, vol. 222(C).
    8. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    9. Hongyi Mao & Zongjun Wang & Lin Yi, 2021. "Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    10. Papanagnou, Christos & Seiler, Andreas & Spanaki, Konstantina & Papadopoulos, Thanos & Bourlakis, Michael, 2022. "Data-driven digital transformation for emergency situations: The case of the UK retail sector," International Journal of Production Economics, Elsevier, vol. 250(C).
    11. Shamim, Saqib & Zeng, Jing & Khan, Zaheer & Zia, Najam Ul, 2020. "Big data analytics capability and decision making performance in emerging market firms: The role of contractual and relational governance mechanisms," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    12. Jin Li & Lulu Zhou & Xufan Zhang & Zhihong Chen & Feng Tian, 2018. "Technological Configuration Capability, Strategic Flexibility, and Organizational Performance in Chinese High-Tech Organizations," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    13. Insu Cho & Young Hoon Kwak & Jaehyeon Jun, 2019. "Sustainable Idea Development Mechanism in University Technology Commercialization (UTC): Perspectives from Dynamic Capabilities Framework," Sustainability, MDPI, vol. 11(21), pages 1-16, November.
    14. Farzaneh, Mandana & Wilden, Ralf & Afshari, Leila & Mehralian, Gholamhossein, 2022. "Dynamic capabilities and innovation ambidexterity: The roles of intellectual capital and innovation orientation," Journal of Business Research, Elsevier, vol. 148(C), pages 47-59.
    15. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    16. David B. Audretsch & Maribel Guerrero, 2023. "Is ambidexterity the missing link between entrepreneurship, management, and innovation?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1891-1918, December.
    17. Sarianna M. Lundan & Jiatao Li, 2019. "Adjusting to and learning from institutional diversity: Toward a capability-building perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 36-47, February.
    18. Schnyder, Gerhard & Sallai, Dorottya, 2020. "Between a rock and a hard place: Internal- and external institutional fit of MNE subsidiary political strategy in contexts of institutional upheaval," Journal of International Management, Elsevier, vol. 26(2).
    19. José Andrade & Mário Franco & Luis Mendes, 2021. "Technological capacity and organisational ambidexterity: the moderating role of environmental dynamism on Portuguese technological SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2111-2136, October.
    20. Michael Yao-Ping Peng & Ku-Ho Lin & Dennis Liute Peng & Peihua Chen, 2019. "Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High-Tech Firms," Sustainability, MDPI, vol. 11(14), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12665-:d:1221895. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.