Understanding Ambidexterity towards Competitive Advantage: An SEM-based Exploration in Light Engineering SMEs of Bangladesh

Purpose: The study investigates the impact of entrepreneurial ambidexterity on the competitive advantage of light engineering companies in Bangladeshi SMEs. It aims to explore the relationship between entrepreneurial ambidexterity, cognitive flexibility, risk appetite, operational efficiency, and inventive capabilities. The research also aims to understand how these elements interact to improve overall firm performance. 

Methodology: The study collects data from 408 light engineering business owners of SME in Bangladesh using quantitative approaches. Convenience sampling method was employed for data collection through questionnaires. The data was analysed using CFA and SEM methods.

Findings: The study's conclusion was that ambidexterity in entrepreneurship is positively and significantly impacted by cognitive flexibility. Once more, entrepreneurial ambidexterity is negatively yet significantly impacted by risk appetite. Moreover, there was no discernible effect of entrepreneurial ambidexterity on competitive advantage, operational efficiency, or inventiveness. However, operational efficiency and inventiveness have a major beneficial influence on competitive advantage. 

Research limitations/implications: The study's focus on light engineering firms in Bangladesh's SMEs may limit its applicability to other sectors or geographical locations. The unique traits of the population may introduce method bias, necessitating future research using objective performance indicators and interviews. 

Originality/value: This study asserts its originality by exploring the relationship between cognitive flexibility, risk appetite, entrepreneurial ambidexterity, operational efficiency, competitive advantage, and innovative capability in light engineering firm owners in Bangladesh, offering valuable insights for academics and practitioners. 

• Supervision