The role of external embeddedness and knowledge management as antecedents of ambidexterity and performances in Italian SMEs

Sourcing and leveraging knowledge from external network is only half the battle for firms that would become more successful. In fact, the mere access and acquisition of knowledge itself through embedded ties does not secure to perform exploration and exploitation activities and, consequently, to achieve better performance because knowledge has to be managed. Firms' knowledge management orientation may help in the process of knowledge acquisition, sharing and transfer, consequently improving firms' ambidexterity and competitiveness. Thus, this study proposes that knowledge management (KM) plays a key role in determining the outcomes of firm's external embeddedness, i.e. the characteristics and ties of the external network, on ambidexterity and performances of SMEs. An empirical analysis has been developed by using structural equations modeling with data collected from CEOs in 119 Italian SMEs in the ceramic tile industry. Findings show that KM plays a significant role in mediating the effects of external embeddedness on firm ambidexterity that in turn, enhances performances of Italian SMEs in our sample. Based on our results, implications for academics and managers and future line of research are proposed.