The mediating role of organizational innovation ambidexterity between organizational ambidextrous capabilities and sustainability performance of SMEs in Pakistan

Fast-paced technological advancement, hyper-competitive businesses, and environmental uncertainty has challenged the small and medium-sized enterprises’ survival and sustainability. Despite provocation that organizations need to be ambidextrous by exploiting existing capabilities as well as exploring new opportunities to ensure sustainability performance, the role of organizational ambidextrous capabilities and organizational innovation ambidexterity as specific drivers of sustainability performance remain poorly understood. Grounded on ambidexterity
theory, this study examined the effects of organizational ambidextrous capabilities which comprises of ambidextrous leadership, organizational structure and organizational context on sustainability performance. This study also investigated the
mediating effect of organizational innovation ambidexterity on the relationship between organizational ambidextrous capabilities and sustainability performance. Using proportionate stratified random sampling, a total of 438 small and medium-sized enterprises (SMEs) from the manufacturing and services sectors in Pakistan responded to the postal questionnaire, yielding a total response rate of 51%. The data was analyzed by using Partial Least Square-Structural Equation Modelling (PLS-SEM). The path modeling results indicated significant positive effects of organizational ambidextrous capabilities on sustainability performance. Meanwhile, ambidextrous leadership, organizational structure and organizational context have positive and direct effect on
sustainability performance. Further, the findings revealed that organizational innovation ambidexterity has a partial mediation effect on the relationship between organizational ambidextrous capabilities and sustainability performance. The study contributes to ambidexterity theory by validating an integrated framework for
sustainability performance. It is vital for the management in SMEs to explore new opportunities and exploit existing capabilities to ensure sustainability performance. Hence, organizational ambidextrous capabilities and organizational innovation
ambidexterity are vital pathways for gearing SMEs towards innovativeness, market responsiveness to ensure the sustainability performance. The study deliberated theoretical, methodological and practical implications. Finally, limitation and scope for future research are also discussed.