The impact of exploitative and organizational learnings on SMEs’ performance: The role of environmental dynamism

Abstract

Within these dynamics and disruptive eras, it is crucial for all kinds of organization to build and ensure their competencies in increasing their performance and maintaining their position, including for SMEs. This study aims to identify the role of exploitative and organizational learning in influencing SMEs' performance. It also considers the moderating role of environmental dynamism as the conditional factor that underlies the relationship. We carried out the study on 150 SMEs in Jakarta, Indonesia, which was chosen using purposive sampling. The data is collected by distributing an online questionnaire to the respondents, which is then processed and analyzed using Structural Equation Modeling with AMOS. The results of this study indicate that exploitative learning and organizational learning lead to higher SME performance. Furthermore, this influence is more potent when SMEs exist within a dynamic environment, as they will feel the necessity to learn more to face the challenges and seize the opportunities.