EXPLORING THE MEDIATING ROLE OF ORGANIZATIONAL AMBIDEXTERITY BETWEEN ENTREPRENEURIAL ORIENTATION AND BUSINESS PERFORMANCE IN SMES

This study contributes to the academic
understanding of how organizational ambidexterity
mediates the relationship between entrepreneurial
orientation and business performance among SMEs in East
Java, Indonesia. Using a quantitative approach, data were
gathered from 200 SME respondents through a semistructured
questionnaire. PLS-SEM was employed to
analyze both direct and indirect effects. The results reveal
that entrepreneurial orientation positively influences both
exploration and exploitation dimensions of ambidexterity,
which subsequently support improved business
performance. The mediation analysis further indicates that
ambidexterity plays a pivotal role in translating
entrepreneurial posture into performance outcomes. These
findings offer practical value for SME leaders by highlighting
the importance of balancing short-term operational routines
with longer-term adaptive initiatives to remain competitive
in a changing business landscape.