An Investigation of Factors Affecting Australian Small and Medium Enterprise Performance

This quantitative/empirical study explored the connection between ambidextrous leadership, entrepreneurial orientation (EO), organisational innovation, and firm performance in Australian small and medium enterprises (SMEs) focused on sustainability. The research examined these variables in SMEs with 5 to 199 employees and over five years of operation across various private sectors. Data from 344 owners and managers were collected through questionnaires. The findings indicate that organisational innovation contributes to SMEs' improved performance and long-term sustainability. Additionally, EO influences organisational innovation, indirectly impacting firm performance through its mediating role. However, ambidextrous leadership did not directly affect EO or organisational innovation through the mediation of EO.