Organizational ambidexterity still remains ambiguous in terms of the concept and vague in terms of feasible realizations, especially for SMEs. We analyze recent classifications of the concept and focus on cyclical ambidexterity as the appropriate means for SMEs to manage the tension between incremental and discontinuous innovation effectively. We argue that cyclical ambidexterity should be understood as a sequence and interplay of quality management processes and internal communities for open innovation. By applying the methodological approach of action research, we investigate an implementation of such an approach to cyclical ambidexterity at Hofmann Personal. The findings confirm our framework of social and technological design elements of internal communities for open innovation.