This study investigates how small and medium-sized enterprises (SMEs) achieve and manage innovative ambidexterity through the dynamic capability perspective, addressing potential imbalances particularly in the context of resource constraints and changing environments. Employing a comparative case study approach, the research draws on qualitative, in-depth interviews with CEOs and founders of four Russian SMEs within the Information Technology (IT) sector, selected from a larger cohort. Key capabilities were identified at each stage of the dynamic capability process. In the sensing phase, essential capabilities include cultivating dynamic technological and marketing skills, problem-solving proficiency, and a commitment to continuous learning with real-time awareness. In the seizing phase, the emphasis shifts to enhancing capabilities through learning, fostering an innovation-driven culture, empowering employees, providing continuous training, promoting active collaboration at all levels, and recognizing achievements through team rewards. During, the reconfiguration phase adaptive decision-making, resource and coordination flexibility, and future-oriented innovation and partnerships become critical. These capabilities foster a balance of exploratory and exploitative innovation within SMEs enabling the achievement of innovative ambidexterity. Throughout this process, potential imbalances are managed by leveraging critical capabilities such as clear goal-setting and performance feedback, a culture of openness, trust, and mutual support, and adaptive decision-making with wise allocation of firm-specific resources. Through our findings, we advance the understanding that ambidexterity is achievable in resource-constrained SMEs under external constraints, offering insights into dynamic capabilities that enable such attainment.