<b>An Investigation of Factors Affecting Australian Small and Medium Enterprise Performance</b>

<b>Abstract</b><i>: </i><i>According to government reports, thousands of Australian-based small and medium enterprises (SMEs) struggle to survive. This research investigated the role of three constructs (ambidextrous leadership, entrepreneurial orientation (EO), and organisational innovation) on SME performance. Survey data from owners and managers of 344 Australian SMEs was analysed using structural equation modelling. The results partially validated the connection between opening leadership behaviours of ambidextrous leadership with firm performance (measured through customer satisfaction and financial performance). The research also indicated a substantial and positive influence of closing ambidextrous leadership behaviours on customer satisfaction and financial performance in firm performance. Contrary to expectations, results showed a significant negative association between EO and customer satisfaction and a weak correlation between EO and financial performance. Finally, organisational innovation was identified as an antecedent for customer satisfaction and financial performance, confirming existing research in this area.</i>