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This paper aims to explore the relationship between owner-manager or leader’s ambidextrous leadership style and its effect on human resource management (HRM) practices, contextual ambidexterity and knowledge-intensive small- and medium-enterprises (SMEs) strategic agility.

This study presents an in-depth qualitative case study analysis of two knowledge-intensive SMEs from India’s information technology and health-care products industry serving a range of global clients. Using the theoretical lenses of empowerment-focused HRM practices, ambidextrous leaders, contextual ambidexterity and strategic agility, semi-structured interview data of leaders, managers and employees of the case organizations were analysed. Through a two-staged analytical process, we abductively developed a novel conceptual framework at the intersection of the above theoretical lenses.

The findings suggest that the knowledge-intensive SME’s strategic agility, ambidexterity and empowerment-focussed HRM approach was influenced by the owner-manager or leader’s ambidextrous leadership style and their philosophy towards managing people and had a positive impact in creating a culture of trust, participation, risk-taking and openness, and led to delivering innovative products and services as well as several positive employee-level outcomes.

Recent literature reviews on HRM In SMEs highlight several gaps, including the impact of owner-manager or leader’s philosophy of managing people in shaping HRM practices and employee outcomes. This paper thus adds to the existing literature on HRM and knowledge-intensive SMEs.

The study examines the mediating mechanisms of job engagement (JE) and organizational engagement (OE) in the relationship between organizational career development (OCD) and retention of millennial employees.

Data from a total of 422 employees working in information technology organizations in India were collected through a structured questionnaire survey and subjected to analysis using structural equation modelling (SEM) with a confidence level of 95 percent. The convenience sampling technique for collecting data and descriptive research design was used in the study.

Results of SEM indicate that there is a positive relationship between OCD and employee retention (ER), which is mediated by JE and OE partially.

The study contributes by establishing the mediating role played by JE and OE in the relationship between OCD and ER.