The Role of Ambidexterity Dimension in Mediating the Influence of Entrepreneurial Orientation on Business Performance in SMEs

This study investigates the mediating role of organizational ambidexterity in the relationship between entrepreneurial orientation and business performance among small and medium enterprises (SMEs) in the Kedu Residency, Central Java, Indonesia. The approach used in this study is a qualitative descriptive analysis approach. In this study, the researcher conducted an investigation to describe the Business Performance of SMEs driven by entrepreneurial orientation through ambidexterity, with dimensions of exploration and exploitation, in SMEs located in the Kedu Residency, Central Java Province. The findings are expected to firmly reveal that organizational ambidexterity plays a significant mediating role in strengthening the relationship between entrepreneurial orientation and business performance. SMEs that adopt an ambidextrous strategy are expected to show significantly superior performance results compared to their counterparts that do not integrate the approach. In the dynamic and often unstable environment that characterizes developing economies, the ability of organizations to simultaneously explore new opportunities while exploiting existing capabilities emerges as an important determinant of sustainable success. This study offers practical insights for SMEs practitioners, highlighting the need to embed an ambidextrous framework in business models to enhance competitiveness, agility, and resilience in increasingly complex and unpredictable markets.