Antecedents of Ambidextrous Behavior and its influence on MSME Performance (Study of MSMEs in Malang Regency)

Abstract

This research aims to examine the influence of Organizational Ambidexterity (OA) and Entrepreneurial Orientation (EO) on the performance of MSMEs in Malang Regency. OA is defined as an organization's ability to balance exploring new opportunities (exploration) and exploiting existing resources (exploitation). EO includes innovation, proactivity and risk taking in business operations. This study used a quantitative approach with a survey method, involving 139 respondents, most of whom were MSME owners in the food and beverage sector. The research results reveal that the majority of MSMEs were able to adapt well during the COVID-19 pandemic thanks to a significant increase in the use of digital technology. From the perspective of ambidexterity behavior, the ability of MSMEs to switch to digital platforms shows a high level of ambidexterity. Supporting factors for ambidextrous behavior include a conducive organizational climate and government support in the form of economic incentives. This research also found that EO has a positive effect on OA and MSME performance. High EO encourages MSMEs to be more innovative, proactive and willing to take risks, which in turn increases their exploration and exploitation capabilities. In addition, this research emphasizes the importance of organizational support in shaping ambidextrous behavior of MSMEs by creating an environment that supports collaboration, trust and constructive feedback. Measuring construct validity and reliability using PLS-SEM shows that this research model is very reliable. This technique was chosen because of its ability to handle data at various scales and provide stronger structural model estimates than other methods. Overall, this research concludes that a strong combination of OA and EO can significantly improve the performance of MSMEs, especially in facing challenges and opportunities in the digital era. These findings provide practical implications for MSME owners and policy makers to focus on developing ambidexterity and entrepreneurial orientation to achieve sustainable competitive advantage.