Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator

Contextual ambidexterity and digital platform capability can help SMEs achieve long-term success. However, achieving a balance between exploration and exploitation of contextual ambidexterity for integrating and reconfiguring organisations using digital platform capability is challenging to SMEs. Th...

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Main Authors: Ramdan, Mohamad Rohieszan, Abdullah, Nor Liza, Abd. Aziz, Nurul Ashykin, Mohd. Fuzi, Nursyazwani, Ong, Sharon Yong Yee, Ab. Wahab, Nur Yuhainis
Format: Article
Language:English
Published: Penerbit UKM 2024
Subjects:
Online Access:http://eprints.utm.my/109047/1/NursyazwaniMohd2024_ImplicationsofContextualAmbidexterityandDigital.pdf
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author Ramdan, Mohamad Rohieszan
Abdullah, Nor Liza
Abd. Aziz, Nurul Ashykin
Mohd. Fuzi, Nursyazwani
Ong, Sharon Yong Yee
Ab. Wahab, Nur Yuhainis
author_facet Ramdan, Mohamad Rohieszan
Abdullah, Nor Liza
Abd. Aziz, Nurul Ashykin
Mohd. Fuzi, Nursyazwani
Ong, Sharon Yong Yee
Ab. Wahab, Nur Yuhainis
author_sort Ramdan, Mohamad Rohieszan
collection ePrints
description Contextual ambidexterity and digital platform capability can help SMEs achieve long-term success. However, achieving a balance between exploration and exploitation of contextual ambidexterity for integrating and reconfiguring organisations using digital platform capability is challenging to SMEs. The inherent disadvantage of size and lack of resources plaguing SMEs limits their market competitiveness. In this digital age, it is pertinent for SMEs to focus on capabilities development, especially capabilities that can leverage digital infrastructure to compensate for resource deficiencies. To address this issue, this study examines the implications of contextual ambidexterity and digital platform capability on SMEs performance, and the role of absorptive capacity as a moderator. Using a quantitative method, 157 responses from Malaysian SME managers were analysed using PROCESS Macro. The results show that both contextual ambidexterity and digital platform capability have positive relationships with SME performance, while absorptive capacity positively moderates the relationship between contextual ambidexterity and digital platform capability, enhancing SMEs performance. Overall, this study contributes to the current literature by highlighting contextual ambidexterity and digital platform capabilities as critical dynamic capabilities for SMEs. The findings demonstrate that organisational learning elements represented by absorptive capacity could strengthen the interplay of dynamic capabilities to achieve the competitive advantage. This study can also help SME managers in developing countries to develop strategic actions to achieve superior performance through continuous and sustainable learning, as well as provide some suggestions for future research.
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spelling utm.eprints-1090472025-01-28T03:17:39Z http://eprints.utm.my/109047/ Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator Ramdan, Mohamad Rohieszan Abdullah, Nor Liza Abd. Aziz, Nurul Ashykin Mohd. Fuzi, Nursyazwani Ong, Sharon Yong Yee Ab. Wahab, Nur Yuhainis H Social Sciences (General) HD Industries. Land use. Labor Contextual ambidexterity and digital platform capability can help SMEs achieve long-term success. However, achieving a balance between exploration and exploitation of contextual ambidexterity for integrating and reconfiguring organisations using digital platform capability is challenging to SMEs. The inherent disadvantage of size and lack of resources plaguing SMEs limits their market competitiveness. In this digital age, it is pertinent for SMEs to focus on capabilities development, especially capabilities that can leverage digital infrastructure to compensate for resource deficiencies. To address this issue, this study examines the implications of contextual ambidexterity and digital platform capability on SMEs performance, and the role of absorptive capacity as a moderator. Using a quantitative method, 157 responses from Malaysian SME managers were analysed using PROCESS Macro. The results show that both contextual ambidexterity and digital platform capability have positive relationships with SME performance, while absorptive capacity positively moderates the relationship between contextual ambidexterity and digital platform capability, enhancing SMEs performance. Overall, this study contributes to the current literature by highlighting contextual ambidexterity and digital platform capabilities as critical dynamic capabilities for SMEs. The findings demonstrate that organisational learning elements represented by absorptive capacity could strengthen the interplay of dynamic capabilities to achieve the competitive advantage. This study can also help SME managers in developing countries to develop strategic actions to achieve superior performance through continuous and sustainable learning, as well as provide some suggestions for future research. Penerbit UKM 2024 Article PeerReviewed application/pdf en http://eprints.utm.my/109047/1/NursyazwaniMohd2024_ImplicationsofContextualAmbidexterityandDigital.pdf Ramdan, Mohamad Rohieszan and Abdullah, Nor Liza and Abd. Aziz, Nurul Ashykin and Mohd. Fuzi, Nursyazwani and Ong, Sharon Yong Yee and Ab. Wahab, Nur Yuhainis (2024) Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator. Jurnal Pengurusan, 71 (NA). pp. 1-17. ISSN 0127-2713 http://dx.doi.org/10.17576/pengurusan-2024-71-5 DOI:10.17576/pengurusan-2024-71-5
spellingShingle H Social Sciences (General)
HD Industries. Land use. Labor
Ramdan, Mohamad Rohieszan
Abdullah, Nor Liza
Abd. Aziz, Nurul Ashykin
Mohd. Fuzi, Nursyazwani
Ong, Sharon Yong Yee
Ab. Wahab, Nur Yuhainis
Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator
title Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator
title_full Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator
title_fullStr Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator
title_full_unstemmed Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator
title_short Implications of contextual ambidexterity and digital platform capability on SME performance: the role of absorptive capacity as a moderator
title_sort implications of contextual ambidexterity and digital platform capability on sme performance the role of absorptive capacity as a moderator
topic H Social Sciences (General)
HD Industries. Land use. Labor
url http://eprints.utm.my/109047/1/NursyazwaniMohd2024_ImplicationsofContextualAmbidexterityandDigital.pdf
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