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

Amidst a contemporary fast-changing business envi- ronment, scholars and practitioners alike increasingly recognize knowledge management (KM) and dynamic capabilities as key el- ements in the development of firms’ competitive advantage. Our understanding of the effect of KM on firm performance, nonethe- less, 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 ex- ploitation activities. Thus, building on KM and dynamic capabil- ity literature, and implementing a quantitative methodology, this paper aims to investigate the elusive relationship among KM ori- entation, dynamic capabilities, and ambidextrous entrepreneurial intensity (EI). Employing a dataset composed of 181 Italian firms operating in the ICT industry, and using structural equation mod- eling, 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 am- bidextrous EI and performance, especially when the firm has sub- stantial dynamic capabilities. These findings further facilitate the identification and prescription of explicit scholarly and managerial implications.