<![CDATA[Purpose: This study addresses a significant gap in the strategic management literature by proposing and empirically testing a dual-mediation framework in which dynamic capabilities influence firm performance through two complementary mechanisms organizational resilience as a value-protection pathway and organizational ambidexterity as a value-creation pathway in the context of East Javanese SMEs. Research Methodology: This quantitative, cross-sectional survey involved 356 SME owners, managers, and senior staff in East Java, Indonesia, across six sectors, selected via purposive sampling. Data were collected through online and offline questionnaires using validated seven-point Likert scales for all constructs, then analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. Results: Dynamic capability significantly improves organizational resilience, organizational ambidexterity, and firm performance, which is further improved by resilience and ambidexterity. Both mediators significantly mediate the dynamic capability, firm performance link, indicating partial mediation with ambidexterity as the dominant mechanism. Conclusions: Dynamic capabilities enhance SME competitive advantage through two complementary mechanisms: organizational ambidexterity, which drives innovation and value creation, and organizational resilience, which protects operational continuity during disruptions. Both partially mediate this relationship, supporting a dual mediation framework integrating Dynamic Capabilities, Organizational Resilience, and Organizational Learning theories. Limitations: The cross-sectional design and perception-based survey from a specific regional and sectoral sample limit causal inference, raise the risk of common method bias, and constrain generalizability. Contributions: This study contributes to strategic management literature by integrating dynamic capability, ambidexterity, and resilience into a unified dual-mediation framework, and offers practical guidance for SME owners, managers, and policymakers in emerging economies]]>
