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Executives’ Assessments of Evolutionary and Leapfrog Modes: An Ambidexterity Explanation Logic

Author

Listed:
  • Yu Xie

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Yi-Fei Du

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Francis Boadu

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Xuan-Ya Shi

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

Abstract

Under the background of resource dependence, it is of great significance to study the emerging market multinationals’ (EMNEs) entry mode into international market. How do complementary assets and expansion opportunities in a host country market influence the EMNEs executive’s entry mode choice? We adopt policy capture method to designed questionnaire and administered to high-level EMNEs executives in China. The results show that the availability of complementary assets in the host country market have a positive influence on EMNEs executives’ evolutionary and leapfrog entry modes choice, and EMNEs executives’ preferences for leapfrog mode over evolutionary mode is positively related to the host country’s complementary assets. The expansion opportunities in the host country market have a positive influence on EMNEs executives’ evolutionary and leapfrog entry modes choice. This shows that expansion opportunities in the host country market have a similar degree of attraction for executives’ evolutionary and leapfrog modes. Unlike most current studies, which advocate that leapfrog is mainly used to obtain international assets, while evolutionary approach is more suitable for seeking international opportunities. This paper shows that the opportunity factors play the same important role as assets factors in promoting EMNEs executives’ springboard behavior. It also reveals the ambidexterity logic in EMNEs executives’ decision-making process.

Suggested Citation

  • Yu Xie & Yi-Fei Du & Francis Boadu & Xuan-Ya Shi, 2018. "Executives’ Assessments of Evolutionary and Leapfrog Modes: An Ambidexterity Explanation Logic," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2893-:d:163853
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    Cited by:

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    2. Maria Vincenza Ciasullo & Raffaella Montera & Nicola Cucari & Francesco Polese, 2020. "How an international ambidexterity strategy can address the paradox perspective on corporate sustainability: Evidence from Chinese emerging market multinationals," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2110-2129, July.
    3. Bo Zhang & Zhanwen Niu & Chaochao Liu, 2020. "Lean Tools, Knowledge Management, and Lean Sustainability: The Moderating Effects of Study Conventions," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
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    5. Rong Li & Yi-Fei Du & Hong-Juan Tang & Francis Boadu & Min Xue, 2019. "MNEs’ Subsidiary HRM Practices and Firm Innovative Performance: A Tacit Knowledge Approach," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    6. Francis Boadu & Yu Xie & Yi-Fei Du & Elizabeth Dwomo-Fokuo, 2018. "MNEs Subsidiary Training and Development and Firm Innovative Performance: The Moderating Effects of Tacit and Explicit Knowledge Received from Headquarters," Sustainability, MDPI, vol. 10(11), pages 1-25, November.

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