Ambidextrous Organization in East Asian Traditional Industries: An Empirical Analysis of Japanese Agricultural Corporations

Abstract

AbstractThis chapter discusses ambidextrous global strategy in traditional industries in East Asia. Specifically, ambidexterity management in Japanese agricultural corporations is investigated as an example of traditional industries in East Asia. The results show a strong “success trap” in the ambidexterity management of Japanese agricultural corporations. In other words, most knowledge management in Japanese agricultural corporations has a positive impact only on exploitation. Additionally, exploration in Japanese agricultural corporations did not have an impact on firm performance. Conversely, exploitation had a positive impact on firm performance in Japanese agricultural corporations. Further, the existence of ambidextrous managers improves firm performance. However, this effect was obtained in the form of “amplification of the positive impact of exploitation on firm performance” when the level of new market development was high. Thus, we can see that exploitation had an important impact on firm management in the traditional agriculture industry in Japan.