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Purpose

This study aims to investigate the relationships between organisational ambidexterity, HRM practices, Industry 4.0 technologies and the performance of small and medium-sized enterprises (SMEs) in Australia. It further examines whether HRM practices and Industry 4.0 technologies have any mediating effects on the relationship between organisational ambidexterity and Australian SMEs' performance.

Design/methodology/approach

To achieve the research objective, a quantitative approach was employed, and a cross-sectional survey was administered to 201 SMEs across diverse industries in Australia to collect primary data. The collected data were analysed using factor analysis and structural equation modelling (SEM) to examine relationships and test the proposed hypotheses.

Findings

The statistical results reveal that the organisational ambidexterity approach through exploiting existing competencies and exploring new opportunities along with HRM practices and Industry 4.0 technologies improve SMEs' performance in Australia. This study also finds that HRM practices and Industry 4.0 technologies mediate the relationship between organisational ambidexterity and Australian SMEs’ performance.

Originality/value

The concurrent effects of organisational ambidexterity, HRM practices and Industry 4.0 technologies on SMEs' performance, and how HRM practices and Industry 4.0 technologies mediate and affect the relationship between ambidexterity and SMEs' performance have not been addressed previously in Australia. This study, thus, addresses those research gaps, which are expected to add valuable insights for academics and practitioners in SME operations in Australia and other countries.

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