Organizational Ambidexterity, Digital Transformation, and Strategic Agility for Gaining Competitive Advantage in SMEs

Abstract

This study aims to examine the effects of strategic agility and environmental dynamism on the relationship between organizational ambidexterity and digital transformation and competitive advantage in small-scale SMEs. A quantitative research method is used in the study. The research population is the managers of 17451 small-scale SMEs in the wholesale and retail trade sector within the provincial borders of Istanbul, which employ less than 50 employees annually and whose annual net sales revenue or financial balance sheet does not exceed 25 million Turkish Liras according to the data of the end of 2020. An online survey was sent to the managers of 450 small-scale SMEs reached by convenience sampling method and the data obtained from 366 valid surveys were analyzed through the Smart PLS program. According to the research results, organizational ambidexterity and digital transformation are positively related to competitive advantage. In addition, it is determined that digital transformation has a partial mediating role on the relationship between small-scale SMEs’ ambidexterity and competitive advantage, and strategic agility has a moderating role on this relationship. On the other hand, it is concluded that environmental dynamism does not have a moderating role on the relationship between small-scale SMEs’ ambidexterity and competitive advantage.