Enabling innovation in the face of uncertainty through IT ambidexterity: A fuzzy set qualitative comparative analysis of industrial service SMEs

Abstract

Taking a configurational approach, this paper investigates the causal configurations of IT ambidexterity (i.e., IT capabilities for exploitation and exploration), dynamic capabilities (i.e., innovation and networking capabilities) and environmental uncertainty that are associated to service innovation performance in small and medium-sized enterprises (SMEs). Results from a fuzzy set qualitative comparative analysis (fsQCA) of 63 industrial service SMEs show that these firms attain high service innovation performance with three different configurations under conditions of high uncertainty. Two configurations highlight the importance of IT exploration capabilities (combined with the absence of innovation and networking capabilities in one configuration and with the absence of networking capabilities and IT capabilities for exploitation in another), whereas another configuration accentuates the importance of IT exploitation capabilities (combined with the presence of innovation and networking capabilities). Our study contributes to the literature in multiple ways. For instance, due to the equifinal properties of the configurational approach, our results suggest that SMEs can attain high innovation performance through both sequential and simultaneous IT ambidexterity, thus providing a starting point for reconciling competing views of IT ambidexterity. Other contributions to theory and practice and avenues for future research are also discussed.