Abstract
In this study, we challenge the conventional understanding of ambidexterity as an unquestionable contribution to better performance. We combine the concept of ambidexterity and the notion of managerial capability to explore different effects of ambidexterity on innovation performance in the context of emerging markets. We investigate this ambidexterity-innovation effect, and how this effect is moderated by managerial capability, on a sample of 74 Chinese multinational enterprises (MNEs) vs. 60 indigenous firms that are both in high technology industries. We find that, surprisingly, ambidexterity has a negative effect on the innovation performance of indigenous firms, although this effect is less so in the case of Chinese MNEs. More importantly, strong managerial capability increases the positive effect of ambidexterity on the innovation performance of Chinese MNEs, but not so for indigenous firms. We discuss the implications of these findings on research on ambidexterity and product innovation.
Original language | English |
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Article number | 101652 |
Number of pages | 8 |
Journal | International Business Review |
Volume | 29 |
Issue number | 6 |
Early online date | 20 Dec 2019 |
DOIs | |
Publication status | Published - 1 Dec 2020 |
Bibliographical note
The authors would like to acknowledge the financial support provided by National Natural Science Foundation of China (No. 71728003) and University of Macau MYRG (Grant Number: 2016-00207-FBA, Grant Number: 2018-00171-FBA) for this research.Keywords
- Strategic ambidexterity
- Exploration vs. exploitation
- Managerial capability
- Product innovation
- Emerging multinational enterprises (EMNEs)
- China
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Jie Wu
- Business School, Africa-Asia Centre for Sustainability (AACS)
- Business School, Business Management - Chair in Strategy and Entrepreneurship
Person: Academic