Social networks and ambidextrous innovation in SMEs: the mediating role of dynamic capabilities and the moderating role of technological turbulence

This study examines the role of social networks on SMEs (Small- and medium-sized enterprises)' ambidextrous innovation and discusses the mediating effect of dynamic capabilities and the moderating effect of technological turbulence from the perspectives of social network theory and dynamic capability theory. Empirical data were garnered from a sample of 494 SMEs in China and structural equation modelling was used to test the proposed relationships. The results show that: (1) both dimensions of the social networks (relational and structural networks) have a positive impact on SMEs' exploratory innovation(ERI) and exploitative innovation(EII) – the relational networks(RNs) have a stronger impact on SMEs' EII while the structural networks(SNs) have a stronger impact on SMEs' ERI; (2) dynamic capabilities play a mediating role between RNs, SNs and SMEs' ERI, EII; (3) technological turbulence positively moderates the dynamic capabilities – ERI relationship, while not moderates the dynamic capabilities – EII relationship; (4) the indirect effects of RNs and SNs on ERI via dynamic capabilities is moderated by technological turbulence, while the indirect effects of RNs and SNs on EII via dynamic capabilities is not moderated by technological turbulence.