Strategic innovation ambidexterity and the internationalization performance of small and medium enterprises: an insight into herbal-based small and medium enterprises (HbSMES)

Purpose This paper aims to explain the relationship between strategic technological and non-technological innovation ambidexterity and the internationalization performance of HbSMEs. Design/methodology/approach The theory of dynamic capability is highlighted as the main approach to enhance the internationalization performance of HbSMEs. It spells on the importance of continuous improvement, which can be realized by renewing and reconfiguring businesses competencies in response to the changing nature of business environment. The respondents composed of 310 HbSMEs that involve actively in international business activity. The data is analyzed using partial least squares. Findings The results indicate that only strategic non-technological innovation ambidexterity plays critical role in determining the internationalization performance of HbSMEs, while strategic technological innovation ambidexterity creates non-significant impact. Originality/value As resource-constrained enterprises, innovation activity imposed undue burden to Small and Medium Enterprises (SMEs). However, since people are started to shift their preferences on herbal-based products, strategic innovation ambidexterity is critical for HbSMEs to respond to the global herbal market. This research may provide information in which area of innovation should be emphasized by HbSMEs. Here, strategic non-technological innovation ambidexterity has been observed to create positive and significant impact on the internationalization performance of HbSMEs. Therefore, exploiting the existing marketing capability and concurrently exploring new marketing capability are critical for HbSMEs so that businesses could improve its performance in the turbulent nature of international business environment.