Description
This study examines how organizational ambidexterity (AMB)—the ability to simultaneously explore and exploit—drives business model innovation (BMI) in small and medium-sized enterprises (SMEs), with digital transformation capability (DTC) serving as the mediating mechanism. Data were collected from 129 SMEs across diverse industries and analyzed using partial least squares structural equation modeling (PLS-SEM). AMB and DTC were modeled as higher-order constructs, while BMI was measured through three dimensions: value creation, value proposition, and value capture innovation. The results show that AMB strongly predicts DTC, confirming its role as a microfoundation of digital capability. DTC significantly enhances value creation and innovation, but has no significant effect on the value proposition or value capture. Mediation analysis reveals that DTC selectively mediates the AMB–BMI relationship, with a significant effect only on value creation innovation. At the same time, AMB exerts strong direct effects on all BMI dimensions, underscoring its foundational role. The study advances ambidexterity and digital transformation research by demonstrating that DTC functions as a selective mediator rather than a universal mechanism, and it highlights practical implications for SME managers seeking to align ambidexterity with digital investments to achieve strategic
renewal.
| Affiliation / University / Organization | Universidad de Puerto Rico, Recinto de Rio Piedras |
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