The aim of this paper is to investigate the way manufacturing SMEs use exploitation, exploration and ambidexterity to sustain their servitization strategy. We rely on an in-depth longitudinal case study and explore how a French manufacturing SME in the capital goods industry has combined exploitation and exploration activities to develop over time a wide range of services. The findings show (1) that service business development relied on a contextual ambidexterity approach, and (2) that antecedents of ambidexterity mainly related to formal structure and leadership. Further, this study contributes both to the literature on servitization and to the literature on ambidexterity in SMEs.
