The role of knowledge management to improve organizational performance through organizational ambidexterity within the uncertainties

Abstract

Purpose This study highlights the significance of knowledge management in the relationship between organizational ambidexterity and organizational performance within the context of Indonesian SMEs. Design/methodology/approach The study adopts a quantitative research approach, employing a survey questionnaire to collect data from a sample of SMEs operating in Indonesia. Structural Equation Modeling using Partial Least Square is used to investigate the relationship between variables. Findings The findings of this study show that in the context of small and medium enterprises, the variables of environmental and technological uncertainty are not driving factors in organizational ambidexterity. In contrast, market uncertainty has a significant effect on organizational ambidexterity. Moreover, it is also found that knowledge management does not support the variables of environmental, market, and technological uncertainty on organizational ambidexterity in small and medium enterprises. The results show that knowledge management plays a significant role in organizational ambidexterity. It also shows that knowledge management could support a significant way between organizational ambidexterity and organizational performance. Originality/value The findings of this study give insights for SMEs to attain a sustainable competitive edge in a dynamic business landscape by implementing efficient knowledge management techniques that bolster their ambidextrous capacities.