Do Knowledge Management and Dynamic Capabilities Affect Ambidextrous Entrepreneurial Intensity and Firms Performance

Amidst a contemporary fast-changing business environment, scholars and practitioners alike increasingly recognize knowledge management (KM) and dynamic capabilities as key elements in the development of firms competitive advantage. Our understanding of the effect of KM on firm performance, nonetheless, is still limited, as in fact are the circumstances under which KM and dynamic capabilities affect firms; ambidexterity, which reflects firms ability to conduct synchronous exploration and exploitation activities. Thus, building on KM and dynamic capability literature, and implementing a quantitative methodology, this paper aims to investigate the elusive relationship among KM orientation, dynamic capabilities, and ambidextrous entrepreneurial intensity (EI). Employing a dataset composed of 181 Italian firms operating in the ICT industry, and using structural equation modeling, the research subsequently investigates whether and how this relationship affects the overall firm performance. Results indicate that KM orientation has a positive and significant impact on ambidextrous EI and performance, especially when the firm has substantial dynamic capabilities. These findings further facilitate the identification and prescription of explicit scholarly and managerial implications.