Toward a contingency-based understanding of the role of organizational ambidexterity in SME servitization

Abstract

Abstract

Purpose Our study analyzes the relationship between ambidexterity and servitization, considering the role of contextual factors and distinguishing between product-supporting and client-supporting services. Specifically, we propose that two internal factors (empowerment climate and managerial networking) and two external factors (environmental dynamism and competitive intensity) may moderate the effects of ambidexterity on servitization. Design/methodology/approach Our analysis relies on a survey of 1,055 CEOs of French manufacturing small and medium-sized enterprises. We tested our research hypotheses using hierarchical linear regressions and the Johnson–Neyman technique, enabling a detailed examination of conditional effects across the observed data range. Findings Results confirm that ambidexterity drives servitization, whether services support the product or the client. They also show that informal networking and competitive intensity moderate the effect of ambidexterity on servitization, but only with regard to services supporting the client. Originality/value This study offers a detailed and nuanced analysis of the contingency effects shaping the ambidexterity-servitization relationship, revealing distinct moderating influences depending on whether services support the product or the client.