10.1111 Emre.12585 Uibp
10.1111 Emre.12585 Uibp
12585
RESEARCH ARTICLE
1
University of Lyon 2, COACTIS, Lyon, Abstract
France
2
Access to external information is considered crucial to achieving organizational
School of Management Sciences, University of
Quebec at Montreal, Montreal, Canada
ambidexterity (OA) while presenting specific challenges for SMEs due to their
limited resources. However, little is known about how SMEs can best benefit from
Correspondence their external information-seeking activities for OA purposes, given specific orga-
Céline Bérard, University of Lyon nizational practices. Our paper addresses this research gap by analyzing the effects
2, COACTIS, 14/16 avenue Berthelot, 69363,
Lyon Cedex 07, France.
of external information seeking (i.e., environmental scanning and external mana-
Email: celine.berard@univ-lyon2.fr gerial networking) on OA while considering the moderating role of empowerment
climate in SMEs. Based on a survey administered to CEOs of 1439 French
manufacturing SMEs, our main results indicate that empowerment climate posi-
tively moderates the effect of scanning breadth on OA but negatively moderates
the effect of networking depth. This suggests that SMEs should emphasize exter-
nal information-seeking activities that are appropriate to their level of empower-
ment climate so that the positive effects on OA can be fully realized.
KEYWORDS
empowerment climate, environmental scanning, external managerial networking, organizational
ambidexterity, small- and medium-sized enterprises
INTRODUCTION et al., 2021; Li, 2014; Paliokaitė & Pačėsa, 2015). Exter-
nal information seeking has therefore been associated
Research has widely recognized that organizational with a key antecedent of OA. To study this relationship,
ambidexterity (OA)—that is, the ability of an organiza- OA scholars have especially focused on two different
tion to simultaneously exploit existing capabilities and means to seek external information: environmental scan-
explore fundamentally new ones—is critical to firm suc- ning (e.g., Li, 2014; Paliokaitė & Pačėsa, 2015; Robinson
cess (Amankwah-Amoah & Adomako, 2021; Gibson & et al., 2021), which consists of formal searching for infor-
Birkinshaw, 2004; Huang et al., 2021; Wang & mation on the external environment, and external mana-
Rafiq, 2014). However, previous studies have also gerial networking (e.g., Cao et al., 2010; Heavey
pointed out that OA is difficult to achieve, as exploration et al., 2015), which consists of acquiring environmental
and exploitation involve deeply different processes, struc- information from contacts outside the firm. The latter is
tures, capabilities, and strategies (Koryak et al., 2018), presented as a useful alternative to the formal scan of
and originates from competing information and knowl- environmental domains.
edge inputs (Cao et al., 2010). To gain a better under- Faced with OA challenges, external information seek-
standing of how firms can achieve OA, some have ing, through environmental scanning or external manage-
focused on the key role of information seeking, as a criti- rial networking, has therefore become a major concern
cal task for CEOs in meeting the different informational for firms. This concern is even more important for small-
needs associated with exploration and exploitation (Kiss and medium-sized enterprises (SMEs). Indeed, external
et al., 2020). In this stream of research, the importance of information seeking presents specific challenges for these
accessing valuable, timely, and varied information to firms. SMEs are especially known to have weaknesses in
achieve OA has been highlighted (e.g., Cao et al., 2010; external information (Boronat-Navarro et al., 2021; Lang
Heavey et al., 2015). Access to superior external informa- et al., 1997). They often lack resources dedicated to infor-
tion, that is, information about the environment, has mation seeking and the infrastructure required to search
been considered crucial indeed (Boronat-Navarro for and collect information appropriately (Franco
408 © 2023 European Academy of Management (EURAM). wileyonlinelibrary.com/journal/emre European Management Review. 2024;21:408–424.
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EXTERNAL INFORMATION SEEKING AND ORGANIZATIONAL AMBIDEXTERITY IN SMES: DOES EMPOWERMENT CLIMATE MATTER? 409
et al., 2011; Lang et al., 1997; Yoo & Sawyerr, 2014). In We test our arguments on survey data collected from
fact, previous studies have recognized that their limited the CEOs of 1439 French manufacturing SMEs. First,
resources can hinder their activities of external informa- we found that broad and deep environmental scanning,
tion seeking (e.g., Franco et al., 2011; Robinson & as well as broad and deep external networking, contrib-
Simmons, 2018; Watson, 2007), due to the time and ute to OA in SMEs. Unlike most studies that have
financial costs they involve. This suggests an opportunity focused on either environmental scanning or external
cost for external information in SMEs, which may force managerial networking, our study has the advantage of
them to make choices about the breadth and depth of considering both. In doing so, it contributes to a better
external information seeking. Therefore, SMEs should understanding of the features of information seeking that
strategically choose ways to seek external information allow SMEs to meet the knowledge needs of OA and that
and gain the most benefit from it, so that benefits out- are still poorly understood (Heavey et al., 2015). It also
weigh costs. This implies seeking to take full advantage responds to the recent call for a better understanding of
of the positive impact that external information seeking the antecedents of OA in the specific context of SMEs
can have on OA. (e.g., Alcalde-Heras et al., 2019; Huang et al., 2021;
To this end, the knowledge-based view of the firm Soto-Acosta et al., 2018). Second, we found that empow-
can be a useful framework to better understand the com- erment climate positively moderates the impact of scan-
plex relationships between external information seeking ning breadth on OA while negatively moderating the
and OA in SMEs. Indeed, if the acquisition of external impact of networking depth. By revealing the moderating
knowledge for exploration and exploitation constitutes a role of empowerment climate, our study contributes to
key component of this view (Bierly et al., 2009), it also the literature on external information seeking, which has
recognizes the need to internally process the external called for an effort to explore the role of specific organi-
knowledge acquired for value creation (Bouguerra zational practices in the impact of external information
et al., 2022; Lane et al., 2006). This suggests the need for seeking (e.g., Martini et al., 2017; Nambisan, 2013).
firms to have appropriate organizational practices that Finally, by showing that empowerment climate is not
internally support the interpretation and application of always beneficial, a fundamental contribution of our
external information, to improve the impacts of external study that has not been shown before is the illustration of
information seeking (Ardito & Petruzzelli, 2017; Martini the need for SMEs to choose ways to seek out external
et al., 2017; Nambisan, 2013). Yet there is a paucity of information according to their level of empowerment cli-
studies exploring the role of specific organizational prac- mate, to be able to fully realize the positive effects of
tices in enhancing the impacts of external information external information seeking on OA.
seeking. To fill this gap, our study focuses on one set of The remainder of this paper is structured as follows.
specific organizational practices, that is, empowerment The next section presents the theoretical background and
climate, which refers “to the extent to which an organiza- conceptual developments that lead to our research
tion makes use of structure, policies, and practices sup- hypotheses. This is followed by an overview of the
porting employee empowerment” (Nauman research method. The results are then presented and dis-
et al., 2010: 640). We therefore assume that empower- cussed. Finally, the paper concludes with theoretical con-
ment climate does matter when considering the impact of tributions, managerial implications, and directions for
external information seeking on OA. While it has been further research.
suggested that employee empowerment may indeed con-
tribute to the effectiveness of external search strategies
(e.g., Martini et al., 2017), little is still known about the THEORETICAL DEVELOPMENT AND
role that empowerment can play in the relationship HYPOTHESES
between external information seeking and OA.
Therefore, the aim of our study is to provide a more OA and information seeking concerns in SMEs
in-depth understanding of the relationship between exter-
nal information seeking (in terms of environmental scan- From the knowledge-based view of the firm, knowledge
ning and external managerial networking) and OA in is the resource most likely to generate a firm’s sustainable
SMEs by considering the role of empowerment climate. competitive advantage (Amankwah-Amoah &
Theoretically, we draw on the knowledge-based view of Adomako, 2021; Conner & Prahalad, 1996;
the firm to explain the expected moderating role of Grant, 1996). Drawing from this view and focusing on
empowerment. Hence, by assuming that external infor- organizational learning, the seminal paper of March
mation seeking contributes to OA, while recognizing the (1991) paved the way for research on exploration and
need for appropriate organizational practices to assimi- exploitation, as two modes of learning that contribute to
late and use this information internally, we argue that improving a firm’s knowledge base. Since then, the con-
empowerment climate can moderate the positive effects cepts of exploration and exploitation have greatly
of environmental scanning and external managerial net- evolved (Tamayo-Torres et al., 2011; Wilden
working on OA in SMEs. et al., 2018). For example, research has increasingly
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410
BERARD and CLOUTIER
related them directly to innovation outcomes (such as Because of the difficulty of simultaneously excelling at
radical vs. incremental innovation, respectively) rather exploration and exploitation, previous studies have
than learning modes (Li et al., 2008). Reverting to an debated whether firms can achieve OA and have notably
organizational learning perspective, we consider that focused on its antecedents (e.g., Chen et al., 2021;
exploration and exploitation refer to the “different Costanzo, 2019; Gibson & Birkinshaw, 2004; Huang
forms of the learning process through which innova- et al., 2021; Koryak et al., 2018; van Neerijnen
tions come forth” (Li et al., 2008: 117), rather than the et al., 2021). In particular, some studies have claimed that
innovation outcomes themselves. On the one hand, access to valuable, timely, and varied information is
exploration refers to the development of radically new needed to pursue OA (e.g., Cao et al., 2010; Heavey
knowledge that challenges the status quo (Bierly & et al., 2015), as it is “the first key to avoiding polarized
Daly, 2007; Chen et al., 2021), seeking the variation managerial attention to either exploration or exploita-
and novelty needed for radical innovations tion” (Cao et al., 2010: 1273). Therefore, Cao et al. (2010)
(Andriopoulos & Lewis, 2009). On the other hand, insisted on the need to consider rich and diverse informa-
exploitation refers to the incremental enhancement and tion sources to avoid managerial myopia that might lead
expansion of a current knowledge base (Bierly & to an imbalanced emphasis on exploration or exploita-
Daly, 2007; Chen et al., 2021), seeking greater effi- tion. Effort and persistence in information seeking, which
ciency and improvements needed for incremental inno- is defined as the “purposive acquisition of information
vations (Andriopoulos & Lewis, 2009). from selected information carriers (e.g., messages, sources
Although relying on contradictory tensions in and channels)” (Guo, 2011: 137), are thus associated with
knowledge-processing capabilities (Boronat-Navarro higher OA levels. Indeed, they contribute to a more com-
et al., 2021; Lubatkin et al., 2006), the concurrent pursuit plex and refined understanding of problems associated
of both exploration and exploitation is considered vital to with the simultaneous search for exploration and exploita-
the firm’s success (Amankwah-Amoah & tion and thus contribute to the formulation of solutions
Adomako, 2021; Gibson & Birkinshaw, 2004; Huang for the successful pursuit of OA (Kiss et al., 2020). In fact,
et al., 2021; Wang & Rafiq, 2014). In particular, firms information seeking is useful for both exploration and
capable of utilizing the combined effects of new and exist- exploitation. It increases the likelihood of noticing and
ing knowledge “are able to more immediately leverage applying useful new knowledge (Kiss et al., 2020) and of
their knowledge asset capabilities and lessen their weak- promoting creativity in favor of exploration (Lin
nesses” (Lin et al., 2017: 128). Such a firm capability to et al., 2017). In addition, it increases the likelihood of
both explore and exploit is commonly referred to as OA making better recombinations and connections between
(O’Reilly & Tushman, 2013), which is defined here as the existing knowledge in favor of exploitation (Kiss
capability to simultaneously achieve high levels of explo- et al., 2020).
ration of new knowledge and exploitation of existing This paper contributes to the research stream that
knowledge within a business unit. As exploration and associates information seeking with OA, by focusing on
exploitation are increasingly seen as complementary and external information seeking, that is, information about
non-substitutable activities (e.g., Bierly & Daly, 2007; the firms’ external environment. Indeed, the importance
Huang et al., 2021; Koryak et al., 2018), we specifically of acquiring superior information about the environment
associate OA with a “multidimensional construct consist- has long been recognized (Boronat-Navarro et al., 2021;
ing of simultaneous exploration and exploitation in a Daft et al., 1988; Nag et al., 2020). This is particularly
business unit” (Wang & Rafiq, 2014: 60). true for SMEs, which are generally more vulnerable to
As the concurrent pursuit of exploration and exploita- external influences than large firms (Bierly & Daly, 2007;
tion within a business unit generate organizational ten- Osiyevskyy et al., 2020). However, we also recognize that
sions (Boronat-Navarro et al., 2021; Koryak et al., 2018; external information seeking is a costly activity, the out-
Lubatkin et al., 2006), OA is difficult to pursue for most comes of which are uncertain (Frishammar & Åke
firms and especially for SMEs (Boronat-Navarro Hörte, 2005). Therefore, external information seeking
et al., 2021; Kammerlander et al., 2015; Wenke poses challenges for SMEs due to their limited resources
et al., 2021). Indeed, seeking to develop a firm’s knowl- (Haase & Franco, 2011; Lang et al., 1997; Robinson &
edge base while handling tensions between exploration Simmons, 2018). These firms often lack the infrastructure
and exploitation is quite challenging for these firms to gather environmental information and struggle to
(Bierly & Daly, 2007). Compared to large firms, SMEs cover all available sources (Boronat-Navarro et al., 2021).
are known to possess less resources slack, managerial Thus, there is a need to better understand the relationship
expertise, structured procedures and formal systems, between external information seeking activities and OA
which makes it more difficult for them to coordinate con- in the specific context of SMEs. Based on prior research
tradictory activities (Lubatkin et al., 2006; Soto-Acosta that has recommended considering the role of organiza-
et al., 2018). For instance, they tend to have fewer infor- tional practices to improve the impact of such activities
mation processing systems, hence making OA more com- (e.g., Ardito & Petruzzelli, 2017; Martini et al., 2017;
plex to pursue (Wenke et al., 2021). Nambisan, 2013), we propose specifically to examine the
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EXTERNAL INFORMATION SEEKING AND ORGANIZATIONAL AMBIDEXTERITY IN SMES: DOES EMPOWERMENT CLIMATE MATTER? 411
moderating role of empowerment climate to better under- information about events and relationships in a com-
stand how SMEs can best benefit from external informa- pany’s outside environment, the knowledge of which
tion seeking in pursuing OA. would assist top management in its task of charting the
company’s future course of action” (Aguilar, 1967: 1).
Therefore, through environmental scanning, top execu-
Relationship between external information tives “direct their firms” attention to examining external
seeking and OA conditions that are consequential for their firms’ (Pryor
et al., 2019: 1962), by monitoring external environment
There are three main specific reasons why external infor- domains that include the task environment (such as cus-
mation seeking, which focuses on information about tomers, competitors, and technological domains) and the
external environments (i.e., trends and changes beyond general environment (such as social, economic, and regu-
organizational boundaries), can help pursue OA. First, latory domains) (Garg et al., 2003; Stewart et al., 2008;
external information seeking helps to become aware of Yoo & Sawyerr, 2014). This involves deliberately seeking
external trends and of the importance of pursuing OA for external information, across multiple sources of environ-
success, leading firms to put more effort into pursuing mental information, to better understand the environ-
OA (Boronat-Navarro et al., 2021). Indeed, OA helps ment and identify early signals of current changes and
cope with environmental changes and address the chal- future trends (Yoo & Sawyerr, 2014).
lenges of business environments and markets Since environmental scanning is an external
(Jurksiene & Pundziene, 2016). Second, it provides vari- information seeking activity (Robinson et al., 2021), we
ous stimuli for internal reflection, in a “knowledge evolu- build on the previous arguments to hypothesize that it is
tion cycle.” in which both exploration and exploitation positively related to OA. This is in accordance with very
take place (Zollo & Winter, 2002). Third, it inspires and few empirical studies that have looked at the relationship
creates new ideas for exploration while it helps evaluate between environmental scanning and OA, demonstrating a
existing ones for exploitation (Paliokaitė & positive relationship (e.g., Li, 2014; Paliokaitė &
Pačėsa, 2015), hence external information seeking is nec- Pačėsa, 2015). In particular, the study of Li (2014) showed
essary for OA. More generally, knowledge of challenges that the depth of environmental scanning (i.e., its fre-
and conditions in the external environment is deemed quency) is positively associated with OA. Deep or frequent
essential to ambidextrous firms that seek to both respond scanning provides top executives with up-to-date informa-
to future trends and adapt to current changes (Boronat- tion (Beal, 2000), by increasing their level of understanding
Navarro et al., 2021). For instance, the development of of the external environment (Liao, 2018) and allowing
both new and improved offerings would rest on knowing them “to verify the accuracy of the information and to
the requirements and demands of new and current cus- adapt to changing environmental conditions more rapidly
tomers (Kiss et al., 2020). For all these reasons, Boronat- than does infrequent scanning” (Beal, 2000: 30). In doing
Navarro et al. (2021) even suggested that SMEs could be so, firms that frequently pay attention to environmental
as ambidextrous as large firms, by using their flexibility changes and trends can develop relevant knowledge as well
and low levels of inertia to pursue OA, as long as they as awareness about the importance of OA (Boronat-
really pay attention to environmental trends and key suc- Navarro et al., 2021) and clarify the distinctive effects of
cess factors. exploration and exploitation (Li, 2014).
Therefore, we hypothesize that external information Moreover, it has been recognized that firms need to
seeking may have a positive relationship with OA in obtain information on several different external environ-
SMEs. To test this relationship, we focus on ment domains. Those that broadly scan are likely to
environmental scanning and external networking, as two obtain more relevant information about environmental
relevant means to seek environmental information conditions (Beal, 2000) and the current and latent needs
(Franco et al., 2011; McGee & Sawyerr, 2003). We focus of various stakeholders (Liao, 2018). In addition to the
more specifically on the breadths and depths of depth of scanning, the breadth of scanning, which refers
environmental scanning and external networking, to take to the range of the different environmental domains mon-
into account the two components of information seeking itored, does matter as well (Beal, 2000; Daft et al., 1988).
scope, namely, search breadth and search depth Although the specific impact of environmental scanning
(Guo, 2011). breadth on OA has been neglected in previous studies,
one may thus suggest a positive relationship. To some
extent, this is consistent with the premise that access to
Environmental scanning and OA varied information is needed to pursue OA (Cao
et al., 2010; Heavey et al., 2015), which indeed requires
Environmental scanning is considered a key component access and utilization of knowledge from multiple
of organizational learning (Nag et al., 2020; Robinson & domains (Kostopoulos et al., 2015; Limaj &
Simmons, 2018). It is defined as the “activity of acquiring Bernroider, 2019).
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412
BERARD and CLOUTIER
Although it is not explicitly integrated into our study, enabling employees to more effectively pursue incremental
the concept of absorptive capacity leads to the consider- and radical knowledge combinations (Kostopoulos
ation that, if external information seeking is deemed cru- et al., 2015). Moreover, it enables an organizational cli-
cial for pursuing OA, information must be interpreted and mate characterized not only by learning but also by
applied internally to take advantage of it mutual trust (Caniëls et al., 2017; Chang, 2016), which is
(Nambisan, 2013). This suggests that external information deemed important when it comes to OA (Costanzo, 2019;
seeking must be combined with appropriate organiza- Gibson & Birkinshaw, 2004; Kostopoulos et al., 2015).
tional practices to best leverage the information and Indeed, mutual trust encourages actors to freely share
knowledge acquired. Some studies have highlighted the information (Caniëls et al., 2017) and to debate opposing
moderating role of internal practices to enhance the viewpoints, which increases their ability to effectively rec-
impact of external information seeking on innovation out- oncile tensions between exploration and exploitation
comes (e.g., Ardito & Petruzzelli, 2017; Martini et al., 2017; (Kostopoulos et al., 2015).
Nambisan, 2013). For instance, Ardito and Petruz- Therefore, one may suggest the empowerment climate
zelli (2017: 262) focused on the moderating role of strate- can enhance the positive impact of external information
gic human resources practices, as they “can enhance seeking (whether through environmental scanning or
employees” attitude at absorbing new knowledge in a external managerial networking) on OA, by fostering a
timely manner, sharing information, and paying attention context “that provides the unit’s workforce with ability,
to novel recombination opportunities, with the ultimate motivation, and opportunity to perform and utilize
aim of achieving the desired work behaviors and efforts diverse knowledge assets” (Kostopoulos et al., 2015: 115).
contributing to innovation outcomes. In the same vein, To some extent, this is consistent with the study of Kos-
Martini et al. (2017) focused on internal integration mech- topoulos et al., (2015), who found that high-performance
anisms and idea management practices as key moderators, human resource practices, such as those that promote
as they can support the assimilation and application of the empowerment, positively moderate the relationships
knowledge absorbed by external search. Although these between social capital (i.e., the knowledge embedded in
studies focused on innovation outcomes and not on the interpersonal networks) and unit ambidexterity. There-
learning modes by which innovations occur, we propose fore, we propose the following hypotheses:
that appropriate organizational practices can also enhance
the impact of external information seeking on OA. H3. Empowerment climate positively moder-
More specifically, we are interested in the moderating ates the relationship between environmental
role of organizational practices that support an “empow- scanning, in terms of (a) depth and
erment climate.” Empowerment climate, which refers to (b) breadth and OA in SMEs.
“the degree to which senior managers share power with
their subordinates” (Alexiev et al., 2020: 473), is defined H4. Empowerment climate positively moder-
as a shared perception regarding the extent to which a ates the relationship between external mana-
firm maintains organizational practices that support gerial networking, in terms of (a) depth and
employee empowerment, that is, practices that promote (b) breadth and OA in SMEs.
information sharing, autonomy through boundaries and
team accountability (Alexiev et al., 2020; Nauman
et al., 2010; Seibert et al., 2004). The focus on these prac- RESEARCH METHOD
tices is justified here by the assumption that employee
empowerment might be necessary to make external infor- Sample and data collection
mation seeking more effective. Indeed, Martini et al.
(2017) suggested that external search strategies are ineffec- To test the hypotheses, an empirical survey of French
tive when firms lack the ability to communicate and share manufacturing SMEs in the Auvergne-Rhône-Alpes
internally but are likely to be effective when organiza- region was conducted. The sole focus on the manufactur-
tional practices favor employee empowerment. This is ing context was motivated by the concern for homogene-
because employee empowerment can foster absorptive ity, as exploration and exploitation in manufacturing
capacity (Ebers & Maurer, 2014; García-Morales firms are expected to differ significantly from those in ser-
et al., 2008; Soo et al., 2017), by providing employees with vice firms (Huang et al., 2021). Concerning the geograph-
incentives to share and transfer information and knowl- ical context, French manufacturing firms are particularly
edge (Alexiev et al., 2020; Chang, 2016; Soo et al., 2017) interesting to study, given that the manufacturing sectors
and increasing their ability and willingness to acquire and are known, in Europe, to be the main driver of economic
assimilate external knowledge and to transform and apply activity, and that France, in particular, continues to
relevant knowledge (Ebers & Maurer, 2014). In particular, weigh heavily in European production.1 An investigation
by motivating employees to engage in information and into the French Auvergne-Rhône-Alpes region is
knowledge exchange, an empowerment climate can pro-
mote both the refinement and renewal of knowledge, thus 1
French National Agency for Territorial Cohesion (2018).
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414
BERARD and CLOUTIER
especially meaningful, as it is the fourth wealthiest region (e.g., Chen et al., 2021; Heavey et al., 2015), “the addi-
in the European Union and the second in France in terms tive operationalization is preferable to the multiplicative
of gross domestic product. Moreover, in France, it is the measure for ambidexterity as its use has been shown to
second most innovative region in terms of expenditures lead to lower loss in information” (van Neerijnen
on research and development, and the first industrial et al., 2022: 1801). However, to demonstrate the robust-
region, with the highest number of manufacturing sector ness of the findings, we performed analyses by also
jobs, mainly through SMEs which are the first employers using multiplicative operationalization. The findings
in the region.2 obtained with the multiplicative operationalization of
The survey took place within a broader project sup- OA remained consistent with those obtained with its
ported by the Auvergne-Rhône-Alpes regional council, additive operationalization.
which allowed the face-to-face administration of a ques-
tionnaire to CEOs of 1439 manufacturing firms with less
than 250 employees. These CEOs had to answer the ques- Environmental scanning
tionnaire before entering a training program proposed by
this regional council. In accordance with the French To measure the breadth and depth of environmental
SME population, our sample includes relatively small scanning, CEOs were asked to indicate whether, and
firms: 37.6% of them have fewer than 10 employees, with which frequency, different domains of the external
48.8% have between 10 and 50 employees, and 13.6% environment had been monitored at their firm. In line
have more than 50 employees. They tend to be mature with the studies of Garg et al. (2003) and McGee and
firms, with an average of 46 years in existence and a Sawyerr (2003), six external environment domains were
median age of 24 years. Their output includes a wide considered: market, technological, competitive, political/
variety of products, including metal products, machinery legal, economic, and sociocultural environments. Scan-
and equipment, rubber and plastic products, food prod- ning breadth was measured as the number of different
ucts, computer and optical products, textiles, electrical domains monitored and could take a value between
equipment, furniture, and pharmaceuticals, to name but 0 and 6. Scanning depth, which was measured only for
a few. the domains monitored, relied on the scale used by
The questionnaire included questions regarding May et al. (2000); Nag et al. (2020); and Stewart et al.
many managerial practices, including practices about (2008). This five-point scale allowed us to measure the
exploration, exploitation, environmental scanning, frequency of environmental scanning for each moni-
external managerial networking, and empowerment tored domain (from “less than once a year” to “daily”).
climate. Then, scanning depth was a composite index developed
by averaging the frequency of scanning across the mon-
itored domains.
Variable measures
OA External managerial networking
Recognizing that exploration and exploitation are two The measure of the breadth and depth of external mana-
dimensions of learning behavior, complementary and gerial networking relied on the study of Watson (2007).
not substitutable (Chen et al., 2021; Jansen CEOs were asked to indicate whether, and with which
et al., 2009), we used a two-step approach to measure intensity, they had sought advice for their recent strategic
the level of OA. First, exploration and exploitation decision-making, from seven external sources: banks,
were assessed using the two five-point Likert scales pro- advisers (including business consultants and attorneys/
posed by Bierly and Daly (2007). The exploration scale lawyers), external accountants, industry associations
includes four items that focus “on the extent to which and/or public organizations, suppliers and/or customers,
the firm excels at developing radically new knowledge,” managers of other firms, and family and/or friends. Net-
whereas the exploitation scale includes three items that working breadth, which is the number of different
focus “on the extent to which the firm successfully sources a CEO mobilized, could thus take a value
exploits existing knowledge areas” (Bierly & between 0 and 7. Networking depth, which was only
Daly, 2007: 502). Second, in line with our conceptuali- measured for the sources mobilized, was based on a four-
zation of OA, we treated exploration and exploitation point scale that gave an indication of the intensity with
as orthogonal variables and measured OA as the sum which CEOs mobilized external networks to request
of exploration and exploitation. Indeed, although OA advice during strategic decision-making (from “very little
has been operationalized as the multiplication of explo- mobilized” to “strongly mobilized”). In accordance with
ration and exploitation in several prior studies Watson (2007), networking depth was a composite index
developed by averaging the intensity of networking
2
Key figures according to the Chamber of Commerce and Industry (2022). across the mobilized sources.
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EXTERNAL INFORMATION SEEKING AND ORGANIZATIONAL AMBIDEXTERITY IN SMES: DOES EMPOWERMENT CLIMATE MATTER? 415
Empowerment climate solution was analyzed to verify whether one single factor
emerged or a single general factor resulted in most of the
The measure of empowerment climate was extracted covariance between measures. Given that no single factor
from the scale of Nauman et al. (2010). The nine items emerged, and the first factor captured only 27% of the
used on a five-point scale made it possible to take into variance in data, the common method variance is not a
account the key components of an empowerment climate: pervasive issue.
information sharing (item example: “Easy access to infor-
mation and data on the firm’s projects”), autonomy
through boundaries (item example: “Clear understanding RESULTS
of individual roles and responsibilities”), and responsibil-
ity and accountability (item example: “Delegation of Scale reliability and validity
responsibilities”).
Before testing the hypotheses, a confirmatory factor anal-
ysis was performed to assess the psychometric properties
Control variables (validity and reliability) of the scales used (see Table 1).
This analysis demonstrated a satisfactory fit in data, as
Both firm- and CEO-level variables were used as control the comparative fit indexes (CFI and TLI) were above
variables, as usually done in prior research on informa- 0.9 (Bagozzi & Yi, 1988; Hu & Bentler, 1999) and the
tion seeking and OA (Kiss et al., 2020). We controlled chi-square/degrees of freedom ratio (χ 2/df = 3.5) was
for firm size (measured through the total number of lower than 4 (Rupert et al., 2016). Moreover, the root
employees in the firm) and firm age, as these variables mean square error of approximation (RMSEA) and the
have been often taken into account in empirical research standardized root mean square residual (SRMR) were
on OA (e.g., Cao et al., 2010; Kiss et al., 2020; Lubatkin lower than 0.05, thus showing a good fit (Hu &
et al., 2006). We also controlled for the CEO’s experience Bentler, 1999).
in a top management position (measured in the number All items were significantly related to their hypothe-
of years) and his/her age, as both CEO experience and sized factors (p < 0.001). Scale reliability was proven,
age can influence the effects observed (e.g., Kiss as both the values of Cronbach’s alpha and composite
et al., 2020). All control variables were transformed by reliability (CR) were all above the threshold of 0.7 usu-
their natural logarithm. ally accepted, except for networking depth. For the lat-
ter, both values were nevertheless above the threshold
of 0.6, which is commonly considered acceptable
Common method bias (e.g., Bagozzi & Yi, 1988; Hair et al., 2006). Conver-
gent validity of the constructs was thus supported, even
Several precautions were taken to minimize the issues of if the scores of average variance extracted (AVE) were
common method bias. First, as done by Schønning et al. lower than expected for scanning depth and networking
(2019) to reduce item ambiguity, the survey was pilot- depth. Indeed, as recognized by several scholars
tested. This took place with 20 interviewees, CEOs, or (e.g., Lombardi et al., 2020; Yeniaras & Unver, 2016),
firm managers who did not take part in the study but convergent validity is still considered adequate if CR is
whose characteristics matched those of the studied popu- greater than 0.6, even if AVE is less than 0.5. Finally,
lation. Second, we ensured that respondents could not as often done in previous studies (e.g., Cabrilo &
easily guess our modeling intentions, as this helps to Dahms, 2020; Rupert et al., 2016), discriminant validity
reduce common method bias (Cabrilo & Dahms, 2020). was established by ensuring that the square roots of
To do that, the items used to measure the research con- AVE were systematically higher than the inter-construct
structs were included in a comprehensive survey on correlations.
SMEs’ managerial practices, making it difficult for
respondents to draw any conclusions about research
intentions. Third, respondent anonymity was guaranteed. Hypothesis testing
The anonymity guarantee is indeed known to be a means
of reducing social desirability bias (e.g., Bouguerra The descriptive statistics and correlations of all variables
et al., 2022; Kostopoulos et al., 2015; Lombardi are presented in Appendix. The research hypotheses were
et al., 2020; Schønning et al., 2019). Finally, we mobi- then tested using multiple hierarchical regression analy-
lized a post-hoc statistical technique that relied on Har- sis. Table 2 presents the results of the four models tested.
man’s single-factor test, as often done in previous studies Model 1 includes only the control variables. It indicates
to test for common method variance (e.g., Darwish that firm size has a positive influence on OA, whereas
et al., 2020; Lombardi et al., 2020; Schønning firm age has a negative one. Nevertheless, neither the
et al., 2019). Following this technique, all items were experience nor the age of the CEO has a significant
loaded into a factor analysis and the unrotated factor impact on OA.
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416
BERARD and CLOUTIER
Exploration To what extent do you agree with the following statements? 0.760 0.766 0.501
-We frequently experiment with radical new ideas. 0.751
-At our firm, employees frequently come up with creative 0.641
ideas that challenge conventional ideas.
-Compared to our principal competitors, a high percentage 0.643
of our firm sales come from new products launched
within the past 3 years.
-We are usually one of the first companies in our industry to 0.644
use new, breakthrough technologies.
Exploitation To what extent do you agree with the following statements? 0.739 0.749 0.550
-At our firm, a strong emphasis is placed on improving 0.780
efficiency.
-Our firm excels at refining existing technologies. 0.720
-We frequently adjust our procedures, rules, and policies to 0.612
make things work better.
Scanning depth How often do you monitor … (only for monitored domains) 0.783 0.782 0.424
-Market environment 0.601
-Technological environment 0.595
-Competitive environment 0.607
-Political/legal environment 0.580
-Economic environment 0.674
-Sociocultural environment 0.609
Networking depth During your recent strategic decision-making, with what 0.626 0.660 0.371
intensity have you mobilized … (only for mobilized
actors)
-Banks 0.539
-Advisers (including business consultants and attorneys/ 0.643
lawyers)
-External accountants 0.632
-Industry associations and/or public organizations 0.427
-Suppliers and/or customers 0.397
-Managers of other firms 0.392
-Family and/or friends 0.386
Empowerment climate How important are the following practices in your firm? 0.887 0.890 0.525
-Easy access to information and data on the firm’s projects 0.699
-Easy circulation of project documentation to facilitate 0.700
discussion
-Collaboration among members of the management team 0.677
-Clear understanding of individual roles and responsibilities 0.712
-Open communication among firm member 0.780
-Delegation of responsibilities 0.654
-Teamwork 0.751
-Incentives for the professional growth of employees and 0.521
training
-Participative decision-making 0.679
Model fit: χ 2 = 1300; df = 367; CFI = 0.912; TLI = 0.902; SRMR = 0.0450; RMSEA = 0.0424
Abbreviations: RMSEA, root mean square error of approximation; SRMR, standardized root mean square residual.
*Factor loadings are standardized and significant at p < 0.001.
In Model 2, the independent variables related to envi- introduced. Results show a positive influence of both
ronmental scanning (depth and breadth) and external scanning depth and breadth on OA, providing support to
managerial networking (depth and breadth) were H1a and H1b. They also show that both networking
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EXTERNAL INFORMATION SEEKING AND ORGANIZATIONAL AMBIDEXTERITY IN SMES: DOES EMPOWERMENT CLIMATE MATTER? 417
Control variables
Firm size 0.13*** 0.10*** 0.07* 0.07*
Firm age 0.16*** 0.13*** 0.10*** 0.09***
CEO experience 0.04 0.05 0.07* 0.07*
CEO age 0.03 0.02 0.05 0.05
Independent variables
Scanning breadth 0.22*** 0.18*** 0.07
Scanning depth 0.08** 0.06* 0.23
Networking breadth 0.15*** 0.14*** 0.23
Networking depth 0.14*** 0.10*** 0.46***
Moderating variable
Empowerment climate 0.32*** 0.60***
Interaction effects
Scanning breadth * Empowerment 0.31*
Scanning depth * Empowerment 0.22
Networking breadth * Empowerment 0.10
Networking depth * Empowerment 0.49**
R2 0.03 0.16 0.25 0.26
Adjusted R 2 0.02 0.15 0.24 0.25
ΔR 2
0.13 0.09 0.01
Note: Standardized coefficients are reported.
***p ≤ 0.001.
**p ≤ 0.01.
*p ≤ 0.05.
depth and breadth have a positive influence on OA, pro- information-seeking activities could help SMEs realize
viding support to H2a and H2b. the importance of pursuing OA and the problems associ-
In Models 3 and 4, the moderating variable and its ated with the simultaneous pursuit of exploration and
interaction effects with the independent variables were exploitation. Such activities could also contribute to the
added. Results highlight the moderating role of empow- formulation of solutions that enable the successful pursuit
erment climate, but its effects are complex. On the one of OA, by providing the information and knowledge
hand, they show that empowerment climate positively required to both explore and exploit. More specifically,
moderates the relationship between scanning breadth and we showed that both the breadth and depth of scanning
OA, but without significantly moderating the relationship and networking matter. This is in accordance with previ-
between scanning depth and OA. Therefore, H3b is sup- ous work that has highlighted the value of broadly and
ported, whereas H3a is rejected. On the other hand, the frequently scanning the external environment and of
results indicate no significant moderating effect of developing broad and intense networks, to access more
empowerment climate on the relationship between net- relevant and timely information (e.g., Liao, 2018).
working breadth and OA and a negative moderating We also found evidence that empowerment climate
effect when considering networking depth. Hence, both positively moderates the relationship between environ-
H4a and H4b, which predicted a positive moderating mental scanning and OA but only regarding scanning
effect of empowerment climate on the networking–OA breadth. It means that empowerment climate has a pow-
relationship, are rejected. erful moderating role only when considering the diversity
of scanned domains whether they are scanned in depth or
not. Therefore, one may suggest that empowerment cli-
DISCUSSION mate acts as a situational enhancer regarding the positive
impact of environmental scanning on OA, when the envi-
Our findings confirm that OA is positively impacted by ronmental information, acquired through scanning and
environmental scanning and external networking in to be interpreted and applied internally, is inherently
SMEs. As suggested in previous studies (e.g., Boronat- diversified. High-performance human resources practices,
Navarro et al., 2021; Kiss et al., 2020), external such as those that promote empowerment, may indeed
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418
BERARD and CLOUTIER
increase the propensity to utilize information and knowl- empowerment climate, and OA in SMEs. Our results
edge from multiple domains (Kostopoulos et al., 2015) showed by the way that beyond its moderating role,
and may contribute to enhance the positive effect of scan- empowerment climate has a direct positive effect on OA
ning breadth on OA. (see Table 2). Note that this direct effect has already been
By contrast, we showed that the empowerment cli- demonstrated in previous work (e.g., Caniëls et al., 2017).
mate does not positively moderate the relationship By interacting with two of our independent variables
between external managerial networking and OA. The (scanning breadth and networking depth), while being
moderating effect is not significant when considering net- itself an independent variable, empowerment climate acts
working breadth, whereas it is significantly negative as a quasi-moderator.
when considering networking depth. This means that a
high empowerment climate is detrimental to the effect of
networking depth on OA in SMEs. Although it is widely CONCLUSION
recognized that excessive networking may be counterpro-
ductive (Watson, 2007), our findings reveal that it is Theoretical contributions
when employees are highly empowered that excessive net-
working, in terms of depth, may be detrimental. This sug- Our study provides important theoretical contributions.
gests that networking depth might increase the risks of First, drawing on the literature that has suggested that
over-search when the empowerment climate is high. accessing valuable, timely, and varied information is
These risks, including the absorptive capacity problem required to achieve OA (e.g., Cao et al., 2010; Heavey
and the not-invented-here (NIH) syndrome, may then et al., 2015), it provides new insights concerning the rela-
outweigh the benefits derived from searching widely tionships between external information seeking and OA
(Ardito & Petruzzelli, 2017). First, since information in SMEs. Indeed, while confirming the positive effects of
acquired from external contacts is highly tacit, complex environmental scanning and external networking on OA,
in nature and often difficult to interpret (Kiss our study allows for a more detailed and nuanced analy-
et al., 2020), an absorptive capacity problem can occur in sis of these effects, by showing that both the breadth and
firms with a high empowerment climate. Indeed, such a the depth of scanning and networking matter. In doing
problem, which refers to the cognitive limitations that so, it also responds to the need to better understand the
firms face when there are too many ideas and advice to antecedents of OA in SMEs (e.g., Alcalde-Heras
manage and choose among alternatives (Laursen & et al., 2019; Huang et al., 2021; Soto-Acosta et al., 2018),
Salter, 2006), could be accentuated by empowerment which encounter difficulties in coordinating opposing
practices. Certainly, such practices risk reinforcing a activities such as exploration and exploitation (Lubatkin
sense of confusion among employees when faced with the et al., 2006; Soto-Acosta et al., 2018).
challenge of determining what needs to be done and how Second, our study brings new insights into the rela-
to achieve results (Abukhait et al., 2019). This suggests tionships between external information seeking and OA
that it may be more difficult, in firms with a high empow- by examining the moderating role of empowerment cli-
erment climate, to interpret and apply internally the mate. Drawing from the literature on absorptive capacity
external information for OA purposes, when the informa- (e.g., Ebers & Maurer, 2014; García-Morales et al., 2008;
tion is acquired through the deep networking of CEOs. Soo et al., 2017), we indeed hypothesized that external
Second, empowered employees may be more likely to information seeking must be combined with organiza-
reject ideas and knowledge from external sources, since tional practices that foster absorptive capacity, such as
they were not developed by them. This can lead to the empowerment, to best leverage the acquired information
spread of the NIH syndrome within the firm (Natalicchio to achieve OA. In doing so, our study contributes to
et al., 2018). This syndrome describes a negative attitude advanced research that highlights the need for more stud-
toward external knowledge or ideas (Antons et al., 2017; ies on the role of specific organizational practices in
Antons & Piller, 2015) and is known to hinder organiza- enhancing the impact of external information seeking
tional learning by preventing the firm from absorbing (e.g., Martini et al., 2017; Nambisan, 2013). More specifi-
external knowledge (Hannen et al., 2019). When informa- cally, our main results indicated that empowerment cli-
tion is acquired through the deep networking of CEOs, a mate positively moderates the effect of scanning breadth
negative interaction effect of empowerment climate may on OA but negatively moderates the effect of networking
thus be indicative of an NIH syndrome, leading empow- depth. As we showed that empowerment climate is not
ered employees to reject external ideas, to the detriment always beneficial to the effect of external information
of OA. seeking on OA, our findings suggest the need to better
Finally, by highlighting the positive moderating effect understand the relationship between empowerment and
of empowerment climate when environmental scanning is absorptive capacity. In particular, although previous
broad but an adverse effect when CEOs’ external net- studies have produced mixed results regarding the impact
working is deep, our study reveals the complexity of the of empowerment on absorptive capacity (e.g., Ebers &
relationships between external information seeking, Maurer, 2014; Jansen et al., 2005), they suggest the need,
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EXTERNAL INFORMATION SEEKING AND ORGANIZATIONAL AMBIDEXTERITY IN SMES: DOES EMPOWERMENT CLIMATE MATTER? 419
for OA researchers, to take into account the features of ties among actors outside but also within the firm can
external information seeking when examining this lead to knowledge benefits that contribute to OA.
relationship. Second, our sample focused on manufacturing SMEs
in the French region Auvergne-Rhône-Alpes. Although
this has the advantage of reducing the potential effect of
Managerial implications unobserved heterogeneity, it raises the question of exter-
nal validity. Thus, it would be recommended to conduct
Our findings also have important implications for SME further studies across different regions to contribute to
managers. They confirm “the importance of building the generalizability of our findings. However, firms in
scanning and information networks among SMEs” our sample do not constitute a homogeneous population.
(Franco et al., 2011: 268), by demonstrating the positive For instance, they especially differ in size, which we
effects on OA. Although firms with limited resources therefore controlled for, among other things. That being
may be more likely to restrict the breadth and/or depth of said and as recalled by Berghman et al. (2013), this
their activities related to external information seeking reflects the difficult trade-off between internal and exter-
(Franco et al., 2011; Haase & Franco, 2011), our study nal validity and highlights the value of addressing the
demonstrated the interest in carrying out efforts in broad critical issue of unobserved heterogeneity in future stud-
and deep scanning as well as in broad and deep external ies, especially those that would hold across different
networking to help achieve OA. This is even more impor- contexts.
tant as achieving OA is particularly difficult for SMEs, Third, while being aware of the potential biases in
given their lack of resource slack, managerial expertise, single-informant self-report studies, we followed the
and formal systems (Lubatkin et al., 2006; Soto-Acosta small business literature, which is characterized by the
et al., 2018). frequent use of self-reports of CEOs in a key-informant
Our study also showed that SMEs should emphasize approach (e.g., Huang et al., 2021; Molina-Morales &
ways to seek out external information that are appropri- Martínez-Fernandez, 2010; Nag et al., 2020; Yoo &
ate to the level of empowerment climate so that the posi- Sawyerr, 2014). The focus on the CEO as a key respon-
tive effects on OA can be fully realized. In SMEs with dent is also common in OA research, as “it is the CEO
high levels of empowerment climate, the focus may be who is tasked with attending to and managing the issues
put on scanning activities that are broader in range. By that emanate from the simultaneous pursuit of explora-
contrast, it would be counterproductive to focus on deep tion and exploitation” (Kiss et al., 2020: 2204). Since
external networking in these firms. Definitely, as external common method variance is a potentially important bias
information seeking activities are costly (Frishammar & in single-informant surveys (Soto-Acosta et al., 2018;
Åke Hörte, 2005; Watson, 2007), it is important for Wang & Rafiq, 2014), we took several precautions to
SMEs to ensure they can extract the most benefit from minimize it. It remains that the measure of empowerment
these activities. climate might be subject to a social desirability bias,
which could lead CEOs to be tempted to overestimate its
extent, despite the guarantee of anonymity. Moreover,
Limitations and avenues for future research the literature on empowerment climate has recognized
that it is the shared meaning that employees attribute to
This study has some limitations, which provide opportu- empowering practices that matters, since it is this subjec-
nities for future research. First, regarding the features of tive perception that determines their behaviors (Seibert
environmental scanning and external networking, we et al., 2004). Consequently, it would be useful in future
only took into account breadth (in terms of range) and studies to collect data from several respondents, in this
depth (in terms of frequency or intensity). However, case from the employees themselves, to be able to estab-
other features may matter when considering the relation- lish inter-respondent instrument reliability, especially
ships between external information seeking activities, concerning the perceptions of empowerment climate.
empowerment climate, and OA. In particular, scanning Finally, our empirical study thus focused only on the
modes making it possible to distinguish the different CEO level, whereas building on the premise that external
sources used, such as personal or impersonal sources information seeking must be combined with appropriate
(e.g., Daft et al., 1988; May et al., 2000; Robinson & organizational practices to acquire, assimilate, and pro-
Simmons, 2018), could be considered. Similarly, includ- cess information internally. Considering different organi-
ing other features of networking could help to fully cap- zational levels could then provide rich insight into how
ture the complexity of this activity, such as relationship external information is internally applied for OA pur-
duration and emotional intensity (e.g., Collins & poses in SMEs. In particular, taking the individual level
Clark, 2003; Heavey et al., 2015). It would also be inter- into account would make it possible to include the role of
esting to examine internal networking, since it can also psychological empowerment, that is, the role of the “indi-
provide environmental information (Sawyerr et al., 2003). viduals” subjective experiences of empowerment (Seibert
Indeed, Heavey et al. (2015) argued that the strength of et al., 2004: 335). Indeed, organizational practices that
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420
BERARD and CLOUTIER
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1. OA 6.19 1.68 1
2. Scanning breadth 4.29 1.48 0.31** 1
3. Scanning depth 2.74 0.83 0.13** 0.12** 1
4. Networking breadth 4.83 1.74 0.23** 0.25** 0.03 1
5. Networking depth 2.37 0.65 0.17** 0.07** 0.17** 0.06* 1
6. Empowerment climate 3.72 0.74 0.39** 0.19** 0.11** 0.07* 0.16** 1
7. Firm size (log) 2.63 1.16 0.05 0.13** 0.04 0.03 0.05 0.06* 1
8. Firm age (log) 3.04 1.08 0.11** 0.00 0.02 0.09** 0.01 0.05 0.40** 1
9. CEO experience (log) 2.32 0.84 0.00 0.06* 0.01 0.11** 0.06* 0.04 0.09** 0.11** 1
10. CEO age (log) 3.86 0.19 0.01 0.06* 0.01 0.14** 0.09** 0.04 0.12** 0.13** 0.55** 1
Abbreviation: OA, organizational ambidexterity.
**p < 0.01.
*p < 0.05.