Ambidextrous Innovation and Export Performance: The Dynamic Role of Digital and Network Capabilities in SMEs
Candraningrat, Candraningrat (a*), Tanti Handriana (a), Dien Mardhiyah (a), Aries Kurniawan (a), Zackharia Rialmi (a)

a) Department of Management, Faculty of Economics and Business, University of Airlangga
Jl. Airlangga No.4 - 6, Airlangga, Kec. Gubeng, Surabaya, Jawa Timur 60115 Indonesia
*can.ningrat-2022[at]feb.unair.ac.id

Abstract

Purposes: This study examines the influence of network capability (NC) and digital orientation (DO) on the innovation strategies and export performance of Indonesian small and medium-sized enterprises (SMEs) in the creative industry. It addresses the strategic dilemma resource-constrained SMEs face in balancing exploratory (ERI) and exploitative innovation (ETI) for international market competitiveness.
Methods: This research applies a quantitative method using Partial Least Squares Structural Equation Modelling (PLS-SEM). Data were collected through structured questionnaires from 123 exporting craft-based SMEs in East Java. The constructs were measured using validated multi-item scales adapted to the context of digital and network-based innovation.
Results: The findings indicate that NC and DO significantly influence ERI and ETI. However, only exploratory innovation (ERI) statistically impacts export performance, whereas ETI does not. NC also shows a direct positive effect on export performance.
Conclusion and suggestion: The study concludes that small and medium-sized enterprises (SMEs) aiming to improve their export performance should prioritise ERI, particularly through leveraging digital tools and strategic networks. Government programs and SME development policies should support capacity building in DO and networking to sustain innovation-driven exports in creative industries.

Keywords: Ambidextrous innovation- export performance- digital orientation- network capability.

Topic: Strategic management