Organizational ambidexterity, firm performance, and sustainable development: Mediating role of entrepreneurial orientation in Pakistani SMEs

This empirical research investigates the mediating role of entrepreneurial orientation in the relationships between organizational ambidexterity and sustainable development engagement and firm performance. The data were collected from 339 small and medium enterprises using a time-lagged approach and further analyzed using structural equation modeling. The results confirm the mediation of entrepreneurial orientation in the relationships between organizational ambidexterity and firm performance and sustainable development engagement. Institutional support also strengthens the entrepreneurial orientation relationship with firm performance and sustainable development practices. This study provides detailed theoretical and managerial implications by effectively using institutional support to increase firm performance and sustainable development engagement. •The study explored the mediating role of EO in the relationships of OA with SDE and firm performance.•We also examined the moderation of institution support in EO linked with SDE and firm performance.•The time-lagged primary data was collected from the SME sector of the emerging economy of Pakistan.•Institutional support is crucial for the relationship between EO with firm performance and SDE.