Unleashing R&D networks for ambidexterity: The interplay between internal and external networking capabilities

Ambidexterity is key for SME survival and success, and to attain ambidexterity, resource constrained SMEs must leverage ideas and resources within their R&D network. This research investigates how internal and external networking capabilities enable SMEs to harness their R&D network to attain ambidexterity. We test our theory using survey data from 126 SMEs from Austria, Liechtenstein, and Switzerland. Our findings reveal an important paradox: while external networking capabilities are crucial for attaining ambidexterity, internal networking capabilities come at a cost—and while they do directly contribute to ambidexterity, they also lessen the potential for firms to utilize their R&D network to attain ambidexterity. We discuss the important theoretical and managerial implications in terms of how SMEs can most effectively harness their networks to attain ambidexterity. • SMEs rely on internal and external networking capabilities for achieving ambidexterity. • For turning R&D partnerships into ambidextrous outcomes, external networking capabilities are crucial. • Strong internal networking capabilities have a detrimental effect on value creation from R&D partnerships in SMEs. • SMEs need to manage trade-offs between internal and external networking capabilities when leveraging their R&D networks.