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Strategic ambidexterity and innovation in Chinese multinational vs. indigenous firms: The role of managerial capability

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  • Wu, Jie
  • Wood, Geoffrey
  • Chen, Xiaoyun
  • Meyer, Martin
  • Liu, Zhiyang

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.

Suggested Citation

  • Wu, Jie & Wood, Geoffrey & Chen, Xiaoyun & Meyer, Martin & Liu, Zhiyang, 2020. "Strategic ambidexterity and innovation in Chinese multinational vs. indigenous firms: The role of managerial capability," International Business Review, Elsevier, vol. 29(6).
    • Handle: RePEc:eee:iburev:v:29:y:2020:i:6:s0969593119309394
    DOI: 10.1016/j.ibusrev.2019.101652
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    1. Khan, Zaheer & Amankwah-Amoah, Joseph & Lew, Yong Kyu & Puthusserry, Pushyarag & Czinkota, Michael, 2022. "Strategic ambidexterity and its performance implications for emerging economies multinationals," International Business Review, Elsevier, vol. 31(3).
    2. David B. Audretsch & Maribel Guerrero, 2023. "Is ambidexterity the missing link between entrepreneurship, management, and innovation?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1891-1918, December.
    3. Yi, Changjun & Zhang, Jipeng & Zhan, Yun & Yan, Xiaojuan & Chen, Chusheng, 2021. "Internationalization speed and subsidiary survival of EMNCs: The moderating roles of CEO international experience and state ownership," Journal of Asian Economics, Elsevier, vol. 77(C).
    4. Chao Wang & Xiu-e Zhang, 2022. "Binary effects of exploratory and exploitative learning on opportunity identification: The different moderations of environmental munificence and entrepreneurial commitment," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 497-524, September.

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