Abstract
In globalized and increasingly competitive business environment, learning and knowing make it easier for small and medium-sized enterprises (SMEs) to increase their competitive power and gain competitive advantage. SMEs can develop the ability through learning to evaluate the present and the future and, respond correctly, timely and competently to environmental changes and uncertainties. This research was conducted to determine the effect of intellectual capital (IC), organizational ambidexterity (OA) and organizational agility (OAG) on the competitive advantage (CA) of SMEs operating in Türkiye (TR) and the United Kingdom (UK). In the study, which is an empirical research, survey technique was used as a data collection tool. A questionnaire was applied to 792 employees working in managerial positions in SMEs operating in TR and the UK by using convenience sampling method and the collected data was analysed using the structural equation modelling technique. The results show that the IC has a statistically significant, positive effect on OA and OAG in SMEs operating in TR and the UK. In addition, OA has a statistically significant, positive effect on OAG and the OAG has a statistically significant, positive effect on CA in both countries. The analysis results show that there are differences between countries in terms of how intellectual capital, organizational ambidexterity and organizational agility have impact on competitive advantage. The findings facilitate to understand how SMEs have competitive advantage in the developed and developing countries.