Developing Innovation Capability of SME through Contextual Ambidexterity
Abstract: The word
"ambidexterity" can be interpreted as the capability of an
organization that simultaneously implement innovation activities both in
exploratory and exploitative manner. The organization that implement these two
types of innovation activity is called ambidextrous organization. In general,
the studies on ambidextrous organization in the past mainly focused on
structural ambidexterity whereas studies on contextual ambidexterity still got
less attention. The contextual ambidexterity can be achieved through the
provision of context that allow employees to implement both activities on
exploration and exploitation. The Depok City in West Java was one of the
municipalities that see a growing number of small and medium enterprises
(SMEs). According to a data from the Depok Agency for Markets, Cooperatives and
SMEs, the total number of SMEs was 2,400 units, consisting of 2,352 smaller
merchants and 48 medium enterprises. The aim of this research paper was to
elaborate on how far the SMEs in Depok could adopt the study of contextual
ambidexterity. The research itself utilized qualitative approach with mixed
methods research as its methodology by the use of questionnaires and in-depth interviews.
The questionnaires were distributed to the owners of SMEs with purposive
sampling technique whereas in-depth interviews were conducted on SME actors.
The measurement on contextual ambidexterity was conducted with the instrument
that was developed by Ghosbal and Bartlett (in Birkinshaw and Gibson, 2004).
The research results indicated the capability of an organization to innovate
was created through the context of organization in the form of performance
management and social support. The designs of both performance management and
social support from the organization could provide the context that would
support the employees to perform innovative acts both in exploitative and
exploratory sense.
Author: Retno Kusumastuti,
Nurul Safitri, Nidaan Khafian
Journal Code: jpadministrasinegaragg150044