Ambidexterity Perspective Research Articles

Better at Home, Abroad, Or Both? How Chinese Firms use Ambidextrous Internationalization Strategies to Drive Innovation

Purpose Existing research emphasized that Chinese firms gain experience and improve innovation capability through interaction with competitors at home (i.e., inside-out internationalization) and abroad (i.e., outside-in internationalization). However, how Chinese firms transform these experiences into different types of innovation (product vs. process) is largely unknown. The present study (1) analyzes how different internationalization trajectories lead to different types of innovation, (2) establishes how Chinese firms use ambidextrous strategies to combine inside-out and outside-in internationalization, and 3) provides empirical evidence of how ambidextrous strategies might influence performance. Design/methodology/approach This study uses (1) a case research method to refine the classification of firms’ internationalization strategy types, (2) a qualitative textual analysis of firms’ annual reports to differentiate between product and process innovation and to estimate these firms’ international performance, and (3) an inductive approach to derive testable propositions from the literature review and empirical cases. Findings This study provides evidence that many Chinese firms follow an inside-out approach to internationalization and primarily focus on process innovation. At the same time, those firms that implement ambidextrous internationalization strategies develop both product and process innovations and appear to exhibit higher performance. Research limitations/implications This study’s focus on understanding what drives different types of innovation of Chinese firms is important as these firms often struggle to accomplish the dual tasks of competing both at home and abroad with innovation-driven domestic and foreign rivals. Applying an ambidexterity perspective to the context of internationalization strategy makes it possible to reconcile the need to simultaneously implement both outside-in and inside-out strategies and to achieve higher performance results. Further empirical research is required to confirm and generalize this study’s findings. Practical implications Managers are advised to assess which internationalization path would be optimal under a given set of conditions. Further, they should balance their internationalization strategies with respect to innovation types. Foreign multinationals may learn from Chinese firms how to develop ambidextrous internationalization strategies. Originality/value This study applies the ambidexterity lens and differentiates between product and process innovation to explore how different types of internationalization strategies affect product vs. process innovation, as well as firm performance. The empirical evidence provided in this paper is based on original data from 30 Chinese companies and two in-depth case studies. This study provides novel insights into how different trajectories could be combined through ambidextrous strategies.

Understanding Resilience in Organizational Operations - An Ambidexterity Perspective

In this paper we seek to understand how the processes necessary for organizational efficiency and continuity can co-exist with the adaptability required to deal with unanticipated difficulties and ...

An Ambidexterity View toward Technology Commercialization

Organizational capabilities such as technological capabilities and marketing capabilities are key determinants of the success of technological commercialization (TC). However, how firms combine and balance different organizational capabilities in pursuing successful TC remains under-examined. Adopting insights from the ambidexterity perspective, this study focuses on the tension and interplay between two types of capabilities, and conceptualize the simultaneous pursuit of technological capabilities and marketing capabilities as capability ambidexterity. We propose that the balance capability, the combined capability, and the simultaneous pursuit of balance capability and combined capability positively affect TC. We further examine how human resource management practices (high commitment work systems) affect the relationships between capability ambidexterity and TC. Results based on a sample of 272 firms provide partial support to the proposed model. Our results contribute to a better understanding of capa...

Business model ambidexterity and technological innovation performance: evidence from China

ABSTRACTBy applying an ambidexterity perspective to the business model context, this study examines the effects of efficiency and novelty – two conflicting business model design themes – on technological innovation performance and the relationship between these themes as it relates to enhancing technological innovation performance. From an analysis of data on 173 Chinese manufacturing firms, it is found that both efficiency and novelty themes are positively related to technological innovation performance; the combined dimension (CD) of business model ambidexterity (the interaction between efficiency and novelty themes) is positively related to technological innovation performance; and the balance dimension (BD) of business model ambidexterity (the balance between efficiency and novelty themes) positively moderates the relationship between CD and technological innovation performance.

Managing dual business models in emerging markets: an ambidexterity perspective

Research on dual business models has highlighted the challenge for firms when they compete with different business models in a market. Drawing from ambidexterity literature, we investigate the question of how firms integrate or separate business models at the level of value chain activities, which constitute the core operational activities within each business model. We employ a qualitative research approach based on 11 case studies of Western firms that implemented a low‐cost business model in parallel to their premium business model in emerging markets. We find that firms may become ambidextrous in their business models by means of domain separation. In doing so, firms may separate value chain activities to address different additional customer segments in emerging markets. This study contributes to the emerging topic of dual business models and provides the ground for future research on ambidexterity in a global context.

Organisational ambidexterity within process improvement

Purpose– Organisational ambidexterity has emerged as a new research paradigm that is relevant for promoting long-term firm performance however, research within practice-oriented domains has been limited. The purpose of this paper is to explore process improvement through the theoretical lens of organisational ambidexterity to understanding the conflicting aims of variation increasing and decreasing forms of operational process improvement.Design/methodology/approach– Drawing on reviews of both operations and strategic management literature, the paper employs a case study methodology to unpack critical aspects of ambidextrous process improvement across a range of organisational environments.Findings– The research shows that while the companies engaged in qualitatively different forms of improvement, by interpreting practices from an ambidextrous perspective, the complimentary nature of the two forms of improvement could be appreciated. The diversity of firms involved in the research also allowed findings to be considered in relation to a range of operational contexts.Research limitations/implications– The research highlights the relevance of an organisational ambidexterity perspective on operational process improvement, although the selection of companies the research draws from, limits it relevance to non-project-oriented organisations.Practical implications– Provides practitioners with a framework to inform their views and aims when engaging in process improvement activities.Originality/value– This is one of the first articles exploring process improvement from an ambidextrous perspective. This will help re-conceptualise process improvement away from wholly focusing upon quality improvement and variation reducing activities to help account for a more dynamic operating environment.

How to Adapt to Discontinuous Change? Bridging Dynamic Capabilities and Ambidexterity Perspectives

Two important perspectives for understanding how firms adapt to discontinuous change are dynamic capabilities and ambidexterity. In this paper we put forward a conceptual integration of these two p...

Exploration and organizational longevity: The moderating role of strategy and environment

This study investigates the effects of exploration and exploitation on organizational longevity. We ask two questions: (1) How does the balance between exploration and exploitation influence organizational longevity? and (2) How is the appropriate balance affected by organizational and environmental contexts? This study conceptualizes exploration and exploitation as two ends of a continuum in terms of innovation context and tests the hypotheses on balancing exploration and exploitation. An analysis of data from the Korean IT industry during 1981–2011 reveals an inverted U-shaped curvilinear relationship between the extent of exploratory innovation and organizational longevity, providing support for the ambidexterity perspective. We further examine the moderating effects of competitive strategy and environmental dynamism on the relationship between exploratory innovation and organizational longevity. The results indicate that differentiation strategy moderated the exploration–longevity relationship and call for a contingency approach for a better understanding of performance implications of the exploration–exploitation balance.

A conceptual analysis of strategic capability development within product innovation projects

Strategic capability development refers to the renewal of the organisational capabilities which are sources of competitive advantage. The aim of this paper is to examine how strategic capability and competitive advantage build up over time. Recent literature points to the integration of dynamic capability and ambidexterity perspectives in explaining organisational capability development. Literature analysis reveals the role of knowledge integration and product innovation in integrating dynamic capability and ambidexterity. However, little attention has yet been paid to knowledge integration within innovation projects as a context for capability development. Accordingly, this paper aims to develop a conceptual framework for strategic capability development focusing on the role of knowledge integration within product innovation projects. This framework contributes to identifying and emphasising the role of micro processes in capability renewal which in turn enhances our understanding of strategic capability development.

Paths to success: an ambidexterity perspective on how responsive and proactive market orientations affect SMEs' business performance

Despite advancements in understanding the distinction between responsive and proactive market orientations, their effects on business performance are still not explicit. Drawing on the market orientation and ambidexterity literature, this study examines how responsive and proactive market orientations affect business performance in SMEs from an ambidexterity perspective. In this study, we develop a theoretical model toward market orientation for business performance from an ambidexterity perspective. Ambidextrous market orientation (AMO) is defined as a match in the relative magnitude of responsive and proactive market orientations. Using a sample of 186 high-tech firms in China, the authors find that responsive and proactive market orientations are positively associated with exploitative and exploratory innovation strategies, respectively, and exploitative and exploratory innovation strategies are both positively related to business performance. More importantly, we find evidence consistent with the ambidexterity hypothesis by showing that (1) AMO has a positive impact on innovation ambidexterity (i.e., balanced dimension) in SMEs, (2) ambidexterity innovation mediates the relationship between AMO and business performance in SMEs, and (3) ambidexterity innovation has a more positive impact than exploitative and exploratory innovation strategies on business performance. Academic and managerial implications are also discussed.

The Mediating Role of Strategic Orientations on the Relationship between Ambidexterity‐Oriented Decisions and Innovative Ambidexterity

Building on upper echelon theory and strategic process theory, this article analyzes the relationship between ambidexterity‐oriented decisions and innovative ambidexterity. While ambidexterity‐oriented decisions embrace the capability of top management teams to manage contradictory strategic directions, namely adaptability and alignment, innovative ambidexterity captures the ability of firms to simultaneously develop discontinuous and incremental innovations. In addition to the direct relationship between ambidexterity‐oriented decisions and innovative ambidexterity, it is argued that innovation orientation and cost orientation denote two cultural implementation mechanisms that mediate this effect. Using two top‐executive data sets collected in the United States (n = 83) and India (n = 78), the empirical analysis shows that innovation orientation and cost orientation partially mediate the direct influence of ambidexterity‐oriented decisions on innovative ambidexterity, thus further explaining how formulated decisions made by the top management team nurture ambidextrous innovation behavior. Hence, this article extends prior literature that emphasizes a positive influence of top managers on innovation through incorporating an organizational ambidexterity perspective. Second, this study contributes to ambidexterity literature through integrating strategic process theory. While ambidexterity‐oriented decisions primarily relate to strategy formulation, innovation orientation and cost orientation are associated with strategy implementation. The results show that both strategic subprocesses are vital in enabling ambidextrous innovation behavior. Third, an operationalization for the ability of top management to balance adaptability‐ and alignment‐oriented decisions is provided based on prior literature.

Knowledge exchange and knowledge protection in interorganizational learning: The ambidexterity perspective

Are knowledge exchange and knowledge protection conflicting or complementary? Although facilitating knowledge exchange and protecting core proprietary knowledge are important in interorganizational learning, extant studies often regard them as conflicting activities. Few studies have discussed the mechanisms that can help firms achieve both. In this current study, we extend the concept of ambidexterity to the interorganizational learning context and suggest several mechanisms that can enhance knowledge exchange and knowledge protection simultaneously. We conducted a survey and the empirical results reveal that experience sharing and shared interpretation are positively associated with knowledge exchange success. Hostage arrangement enhances the level of knowledge protection, whereas reciprocal investment has no effect on knowledge protection. Furthermore, ambidexterity (the product term of knowledge exchange success and knowledge protection) significantly affects the performance of a firm. Finally, we discuss the implications of this research and offer suggestions for future research.

Creativity in IS usage and workgroup performance: The mediating role of ambidextrous usage

Creativity in the use of information systems (IS) is critical to the performance and long-term success of organizations. Building on an organizational ambidexterity perspective, we investigate ambidexterity in IS usage which is defined as the capacity to simultaneously achieve exploitative usage and explorative usage at a workgroup level. This paper seeks to test the relationships among creative process, usage ambidexterity, and group performance. Based on a sample of 55 workgroups, we found that exploitative usage negatively influences usage ambidexterity while explorative usage positively influences it, and that usage ambidexterity positively influences group performance. Moreover, the findings indicate that usage ambidexterity mediates the effect of exploitative and explorative usage on group performance. Overall, the study contributes to greater clarity and a better understanding of how the creative process influences group performance.

Managing organizational identity in the e-commerce industry: An ambidexterity perspective

In the e-commerce industry, organizations should maintain an enduring and stable organizational identity to gain long-term success while also adapting quickly to the increasingly volatile environment in order to ensure profitability and survival. These ongoing paradoxical challenges concerning the management of organizational identity have been left unaddressed in existing literature. Drawing upon the literature related to organizational ambidexterity and organizational identity, this paper proposes two theoretical frameworks for systematically examining the ways in which organizations, especially those in the e-commerce industry, should manage their organizational identities by leveraging four balancing forms of organizational ambidexterity. Based on these two models, we comprehensively analyzed the case of D.com, which is China's most successful online ticket vendor. Our study not only contributes to the field of knowledge surrounding organizational identity and ambidexterity but also provides a detailed means for practitioners to manage organizational identities at both the strategic and operational levels within the e-commerce industry.

Entrepreneurial Behaviors of Returnee Entrepreneurs and Local Entrepreneurs in China

The returnee entrepreneurship phenomenon has been given increasing attention both in policy making and research. Although previous studies have found evidence about the advantages and disadvantages of returnee in entrepreneurship, the basic issue -- what's the difference between returnee and local entrepreneurs in entrepreneurship process remains unknown. This study use comparative case study to investigate the differences between returnee and local entrepreneurs, based on ambidexterity perspective, and found that returnee entrepreneurs are more influenced by transactional perspective, while local entrepreneurs are more influenced by relational perspective. What's more, the ambidexterity of returnee and local entrepreneurs is a dynamic process.

Market Orientation, Ambidexterity and Performance Outcomes

This study aims to discuss the relation between market orientation and innovation strategies from an ambidexterity perspective. First, defining ambidexterity as simultaneous pursuit of exploitative and explorative innovation strategies, we argue the role of market orientation with responsive and proactive dimensions as an antecedent of both exploitative and explorative innovation strategies. Secondly, we discuss the joint effects of both strategy types on firm performance. We develop several propositions and recommend that a total market orientation can facilitate firms to realize their organizational ambidexterity. Lastly, implications for further research and managerial suggestions are highlighted.

Organizational learning, NPD and environmental uncertainty: An ambidexterity perspective

On the theoretical level, this study formulates a research model that explains underlying relationships among explorative/exploitative learning (EI), new product development (NPD), environmental uncertainty (EU) and firm performance, based primarily on the organizational learning theory and contingency view; while on an empirical level, it examines these relationships in the emerging economy context of China. The empirical results suggest that both explorative and EI have inverted U-shape relationships with firm performance, and that the two types of learning can work in complement. Meanwhile, NPD works as a key mediator between explorative learning and firm performance. Furthermore, its respective relationships between the two types of learning and firm performance are differently moderated by external EU. The article also discusses theoretical as well as managerial implications and highlights future research directions.

An Ambidexterity Perspective Toward Multinational Enterprises From Emerging Economies

Executive Overview In this article we present an ambidexterity perspective on the international expansion of emerging economy enterprises, highlighting the unique strategic behavior of emerging market multinational enterprises (EM MNEs). Specifically, we conceptualize ambidexterity as a multidimensional term comprising co-evolution, co-competence, co-opetition, and co-orientation. While all firms need and maintain some degree of ambidexterity, EM MNEs have stronger motives and abilities to build and leverage such ambidexterity to offset their late-mover disadvantages. They behave co-evolutionarily to deal with the external environment they face at home and abroad, leverage their co-competence (transactional and relational) to compete against their global rivals, develop co-opetitive (simultaneous cooperation and competition) ties with their business stakeholders, and maintain co-orientations (leveraging competitive advantages to bolster short-term survival and compensating competitive disadvantages for lo...

Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity

A firm's organizational and technological boundaries are two important demarcation lines when sourcing for technology. Based on this theoretical lens, four possible combinations of exploration and exploitation emerge. Applying an ambidexterity perspective to a firm's technology sourcing strategy, we hypothesize that a curvilinear relationship exists between a firm's technology sourcing mix and its performance. We further introduce a contingency element by proposing that a firm's absorptive capacity exerts a positive moderating effect on this relationship. We empirically test these hypotheses on a random, multi-industry sample of U.S. manufacturing companies. We find support for the notion that the relationship between technology sourcing mix and firm performance is an inverted U-shape. Moreover, higher levels of absorptive capacity allow a firm to more fully capture the benefits resulting from ambidexterity in technology sourcing.

The determinants of academic research commercial performance: Towards an organizational ambidexterity perspective

This paper examined the relationship between organizational ambidexterity and research commercialization in universities. The paper develops two types of organizational ambidexterity: structural ambidexterity and contextual ambidexterity that influence research commercialization. Through a dataset of 474 academic patent inventors in Taiwan, the results revealed structural and contextual ambidexterity factors are patenting-, licensing- and start-up-specific. Despite both types of ambidexterity are complementary in patenting and licensing, contextual ambidexterity outperform structural ambidexterity in fostering university start-up equity participation. To promote academic research commercialization, it is necessary to build up a university as a dual structural organization that allows pursuing research excellence and research commercialization at the same time.