Dynamic Capability, Ambidexterity, Social Network--Empirical Evidence from SMEs in China

Abstract

The investigation of organization’s ambidexterity is a challenge in management science research. While the existent literature shows a positive relation between dynamic capability and innovation, few empirical studies are focused to explain how dynamic capability influences the balanced and combined dimension of ambidexterity, and still less is understood about how social networks moderate this relation. By a relational model of dynamic capability, ambidexterity, and social network, this study has conducted multiple regression analysis on data collected from 350 SMEs in mainland China. The results show that, dynamic capability has positive influences on both the balanced and combined dimension of ambidexterity; and both the relational network and structural network play an inverted U moderating role, where the moderation of relational network is stronger than that of structural network. This study provides empirical support on dynamic capability’s influence on ambidexterity together with the moderation of social network.