THE IMPACT OF INNOVATION AMBIDEXTERITY AND ENTREPRENEURIAL ORIENTATION ON INNOVATION PERFORMANCE IN SMEs

SMEs are the key source of innovation and economic growth and play a crucial role in enhancing productivity and competitiveness. Innovation is a tool for SMEs to gain a competitive advantage and be successful. This paper aims to identify the impact of innovation ambidexterity and entrepreneurial orientation on technology-based SME innovation performance in Malaysian SMEs. A quantitative method is deployed using an online survey. A total of 115 responses were collected and analysed using PSPP. The findings disclosed that innovation ambidexterity, which comprises innovation exploration and exploitation, positively impacted innovation performance. The entrepreneurial orientation moderated and enhanced the relationship between innovation ambidexterity and innovation performance.  The findings proved that SMEs are currently utilizing innovation exploration and exploitation, which help them remain competitive. The results are expected to provide a piece of fundamental knowledge concerning entrepreneurship and innovation from the context of SMEs. Consequently, the outcomes would support the SMEs in embracing Industrial Revolution 4.0 and SDG 2030 through better programmes and training to increase and strengthen their competitiveness.