This study aims to examine the effects of ambidexterity and entrepreneurial orientation on sustainability performance through eco-innovation among small and medium-sized enterprises (SMEs) in the food and beverage sector in Karawang Regency, Indonesia. A quantitative research approach was employed using data collected from 100 SME owners selected through purposive sampling. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The findings reveal that both ambidexterity and entrepreneurial orientation have positive and significant effects on sustainability performance through eco-innovation. These results indicate that SMEs capable of balancing resource exploration and exploitation while demonstrating innovative, proactive, and risk-taking entrepreneurial behaviors are more likely to achieve superior sustainability performance. From a practical perspective, the findings provide valuable insights for SME owners and policymakers in strengthening ambidexterity and entrepreneurial orientation to promote eco-innovation and improve sustainability performance. This study contributes to the Resource-Based View (RBV) by providing empirical evidence that ambidexterity and entrepreneurial orientation function as strategic organizational capabilities that enhance sustainability performance through eco-innovation in food and beverage SMEs operating in an emerging economy.
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