Dynamic capability, ambidexterity and social network—empirical evidence from SMEs in China

Abstract

Purpose: The investigation of organization's ambidextrous innovation is a challenge in the research studies of management sciences. As existent literature showed a positive relation between dynamic capability (DC) and innovation, few empirical studies are conducted to explain how DC impacts on the balanced and combined dimension of ambidexterity and still less on how social network moderates this relation. As a result, this paper aims to investigate and provide empirical evidence on DC’s influence on ambidexterity in the context of China. Design/methodology/approach: By a relational model of DC, ambidextrous innovation and social network, this study has conducted multiple regression analysis on the data collected from 350 small and medium enterprises (SMEs) in mainland China. Findings: The results show that, DC has positive influence on both the combined and balanced dimension of ambidexterity; and both the relational network and structural network play an inverted U moderating role, where the moderation of relational network is stronger than that of structural network. Originality/value: This study provides empirical support on DC's influence on ambidexterity together with the moderation of social network.