From sharing to shaping: Role of knowledge quality and ambidexterity in SME innovation performance

This study investigates the role of knowledge sharing quality (QKS) in shaping innovation performance within small and medium-sized enterprises (SMEs), emphasizing the mediating effects of organizational ambidexterity. Drawing on the knowledge-based view and dynamic capabilities perspective, we propose that the extent and quality of knowledge shared—specifically its accuracy, relevance, and actionability—critically influence innovation outcomes. Survey data from 260 SME managers in Serbia were analyzed through structural equation modeling. The findings reveal that tacit knowledge sharing significantly enhances QKS, whereas explicit knowledge sharing does not. Furthermore, QKS positively affects innovation performance. Critically, exploitative and explorative ambidexterity mediate this relationship—the capacity to balance refinement and exploration is essential for translating high-quality knowledge into innovation success. These results extend prior research by unpacking the mechanisms through which SMEs can convert knowledge resources into innovation capability. Implications for theory and practice are discussed, offering actionable insights for SME leaders seeking to foster innovation through strategic knowledge management.