Market Orientation and Innovation Ambidexterity: A Synthesized Model for Internationally Operated Herbal-based Small and Medium Enterprises (HbSMEs)

Abstract

Given the adverse impacts of globalization together with technological advancement and rapidly changing customers’ lifestyle, firms have no option but to give consideration and re-evaluate the way they do things to attain a competitive advantage. Dynamic capability in Herbal-based Small and Medium Enterprises (HbSMEs) is viewed as the strategic component in response to the changing landscape of international business environment. This study draws an attention on the linear effects of market orientation, including customer orientation and customer value creation on the establishment of ambidexterity capability. While many empirical studies focus on market orientation, the generalization of its impact on innovation ambidexterity is yet to be explored. Structured questionnaires have been received from 103 key informants of internationally operated HbSMEs in Malaysia. The data has been analyzed using partial least squares. The outcome of the study indicates that market orientation positively affects the establishment of technological and non-technological innovation ambidexterity in the context of internationally operated HbSMEs.