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International ambidexterity and firm performance in small emerging economies

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  • Hsu, Chia-Wen
  • Lien, Yung-Chih
  • Chen, Homin

Abstract

Conventional IB theories stress the importance and implications of a firm's exploitative strategy. However, the unprecedented competitive nature of contemporary business necessitates firm “ambidexterity” — the simultaneous execution of exploitation and exploration activities. Using balanced panel data of 207 Taiwanese firms spanning six years, this research examines the effects of international ambidexterity on firm performance. Findings reveal that ambidexterity promotes a firm's performance. For firms from small emerging economies, international ambidexterity is highly vulnerable to environmental complexity and sensitive to previous international experience and the firm's capability to conduct international business. These factors significantly moderate firm performance.

Suggested Citation

  • Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2013. "International ambidexterity and firm performance in small emerging economies," Journal of World Business, Elsevier, vol. 48(1), pages 58-67.
  • Handle: RePEc:eee:worbus:v:48:y:2013:i:1:p:58-67
    DOI: 10.1016/j.jwb.2012.06.007
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    References listed on IDEAS

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    Cited by:

    1. Villar, Cristina & Alegre, Joaquín & Pla-Barber, José, 2014. "Exploring the role of knowledge management practices on exports: A dynamic capabilities view," International Business Review, Elsevier, vol. 23(1), pages 38-44.
    2. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    3. Scott-Kennel, Joanna & Giroud, Axele, 2015. "MNEs and FSAs: Network knowledge, strategic orientation and performance," Journal of World Business, Elsevier, vol. 50(1), pages 94-107.
    4. repec:eee:iburev:v:26:y:2017:i:5:p:942-958 is not listed on IDEAS
    5. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    6. Bandeira-de-Mello, Rodrigo & Fleury, Maria Tereza Leme & Aveline, Carlos Eduardo Stefaniak & Gama, Marina Amado Bahia, 2016. "Unpacking the ambidexterity implementation process in the internationalization of emerging market multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 2005-2017.
    7. repec:eee:iburev:v:27:y:2018:i:1:p:198-207 is not listed on IDEAS
    8. repec:eee:iburev:v:26:y:2017:i:3:p:544-554 is not listed on IDEAS
    9. Yuksel Ayden, 2015. "A Critical Review of Theoretical Perspectives on Emerging Economy Multinationals," European Journal of Economic and Political Studies, Fatih University, vol. 8(1), pages 19-42.
    10. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.
    11. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    12. García-García, Raquel & García-Canal, Esteban & Guillén, Mauro F., 2017. "Rapid internationalization and long-term performance: The knowledge link," Journal of World Business, Elsevier, vol. 52(1), pages 97-110.

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