Drawing on self-determination theory, empowering leadership and knowledge management strategies this study develops an integrated model to investigate organizational ambidexterity and organizational performance. Data were collected through survey questionnaire from small medium enterprises located in Saudi Arabia. For statistical analysis structural equation modelingapproach is incorporated. Findings of the structural equation modeling revealed that altogether perceived autonomy, perceived competence, perceived relatedness, empowering leadership, knowledge creation and knowledge integration explained substantial variance 𝑅 252.6%in organizational ambidexterity. Therefore, organizational performance was measured with resource readiness and organizational ambidexterity and revealed 𝑅 255.2 %variance in organization performance.The predictive relevance of the research model was established with blind-folding method (𝑄 2 ). For managerial implications, this research directs that empowering leadership, resource readiness and perceived competence are potential constructs to enhance organizational ambidextrousness and organizational performance. Findingdiscloses theoretical contributions, research limitations and future research directions.
Key words: Organizational ambidexterity; Innovation; Knowledge management strategies; Empowering leadership; Resource readiness; Structural equation modeling