The influence of organizational ambidexterity on SME speed of internationalization

Abstract

Small and medium enterprises (SMEs) require a combination of organizational and individual skills to grow more rapidly in international markets. The question is whether there is an ideal combination to compete in the present (exploitation orientation) or to prepare to compete in the future (exploration orientation), and whether managerial cognition plays a role on determining international growth. The analysis of Portuguese manufacturing SMEs suggests that the manager's cognitive systems do not have an overall influence on the growth of foreign sales to total sales (FSTS), but the two cognitive systems (experiential and analytic) have a different influence on international exploitation and exploration. International exploration and exploitation mediate the relationship between the latter variables. This study contributes to a better understanding of the role that organizational ambidexterity plays on the SMEs' speed of internationalization and how the manager's cognitive systems influence this organizational orientation.