Contextual Ambidexterity: Tackling the Exploitation and Exploration Dilemma of Innovation Management in SMEs

In innovation management (IM), two perspectives typically come together, characterized with the term ambidexterity: a clear orientation towards the best possible use of resources (exploitation) and, at the same time, completely new ideas and novel approaches (exploration). We consider contextual ambidexterity suitable to address this dilemma in small- and medium-sized enterprises (SMEs). Based on findings from five German SMEs, we argue that training and using ‘conventional’ IM for exploitation and ‘agile’ IM for exploration could be most feasible. We develop a generic conceptual model with high practical relevance for SMEs and their innovation projects.