IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v45y2024i4p1944-1964.html
   My bibliography  Save this article

The nonlinear relationship between digital affordances and firm‐level export performance: The moderating role of organizational ambidexterity

Author

Listed:
  • László Erdey
  • Laisha Liu
  • Adrián Nagy

Abstract

A diminished trade cost has been ascribed to the advancement of digital transformation, particularly digital technologies and platforms. Nevertheless, whether this decline in trade costs manifests in the extensive or intensive margin of trade remains an unresolved query. This study conducts a comprehensive analysis of the influence of digital affordances on firm‐level export performance. Specifically, we posit that digital affordances will manifest a convex influence on firms' export decisions and intensive margin of export. Furthermore, we propose that the relationship between digital affordances and firm‐level export decisions will be contingent upon the degree of firms' organizational ambidexterity. To empirically test our hypotheses, we leverage a dataset comprising 13,251 firm‐level observations gathered by the World Bank Enterprise Surveys (WBES) unit across 19 Organization for Economic Cooperation and Development (OECD) countries. Our study substantiates a U‐shaped nexus between digital affordances and firm‐level export performance. Importantly, our analysis supports that this U‐shaped nexus is accentuated when firms present a high level of organizational ambidexterity.

Suggested Citation

  • László Erdey & Laisha Liu & Adrián Nagy, 2024. "The nonlinear relationship between digital affordances and firm‐level export performance: The moderating role of organizational ambidexterity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 1944-1964, June.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:4:p:1944-1964
    DOI: 10.1002/mde.4117
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4117
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4117?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Katharina Eck & Martina Engemann & Monika Schnitzer, 2015. "How trade credits foster exporting," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 73-101, February.
    2. Santos Silva, J.M.C. & Tenreyro, Silvana & Wei, Kehai, 2014. "Estimating the extensive margin of trade," Journal of International Economics, Elsevier, vol. 93(1), pages 67-75.
    3. Marnix Assink, 2006. "Inhibitors of disruptive innovation capability: a conceptual model," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 9(2), pages 215-233, April.
    4. Love, James H. & Ganotakis, Panagiotis, 2013. "Learning by exporting: Lessons from high-technology SMEs," International Business Review, Elsevier, vol. 22(1), pages 1-17.
    5. Alfonso Exposito & Juan A. Sanchis-Llopis, 2020. "The effects of innovation on the decisions of exporting and/or importing in SMEs: empirical evidence in the case of Spain," Small Business Economics, Springer, vol. 55(3), pages 813-829, October.
    6. One-Ki (Daniel) Lee & Vallabh Sambamurthy & Kai H. Lim & Kwok Kee Wei, 2015. "How Does IT Ambidexterity Impact Organizational Agility?," Information Systems Research, INFORMS, vol. 26(2), pages 398-417, June.
    7. Yan, Ji & Tsinopoulos, Christos & Xiong, Yu, 2021. "Unpacking the impact of innovation ambidexterity on export performance: Microfoundations and infrastructure investment," International Business Review, Elsevier, vol. 30(1).
    8. Bob Walrave & Kim E. van Oorschot & A. Georges L. Romme, 2011. "Getting Trapped in the Suppression of Exploration: A Simulation Model," Journal of Management Studies, Wiley Blackwell, vol. 48(8), pages 1727-1751, December.
    9. Azar, Goudarz & Ciabuschi, Francesco, 2017. "Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness," International Business Review, Elsevier, vol. 26(2), pages 324-336.
    10. Åkesson, Maria & Sørensen, Carsten & Ihlström Eriksson, Carina, 2018. "Ambidexterity under digitalization: a tale of two decades of new media at a Swedish newspaper," LSE Research Online Documents on Economics 88838, London School of Economics and Political Science, LSE Library.
    11. Ruey-Jer (Bryan) Jean & Rudolf R Sinkovics & S Tamer Cavusgil, 2010. "Enhancing international customer–supplier relationships through IT resources: A study of Taiwanese electronics suppliers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1218-1239, September.
    12. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    13. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    14. Rialti, Riccardo & Zollo, Lamberto & Ferraris, Alberto & Alon, Ilan, 2019. "Big data analytics capabilities and performance: Evidence from a moderated multi-mediation model," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    15. José Luis Ferreras-Méndez & Oscar Llopis & Joaquín Alegre, 2022. "Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity," Post-Print hal-03603189, HAL.
    16. Wendy K. Smith & Michael L. Tushman, 2005. "Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams," Organization Science, INFORMS, vol. 16(5), pages 522-536, October.
    17. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    18. Bouwman, Harry & Nikou, Shahrokh & de Reuver, Mark, 2019. "Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?," Telecommunications Policy, Elsevier, vol. 43(9).
    19. Hinz, Julian & Stammann, Amrei & Wanner, Joschka, 2019. "Persistent zeros: The extensive margin of trade," Kiel Working Papers 2139, Kiel Institute for the World Economy (IfW Kiel).
    20. Paul Goldsmith-Pinkham & Isaac Sorkin & Henry Swift, 2020. "Bartik Instruments: What, When, Why, and How," American Economic Review, American Economic Association, vol. 110(8), pages 2586-2624, August.
    21. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    22. Diego Comin & Martí Mestieri, 2018. "If Technology Has Arrived Everywhere, Why Has Income Diverged?," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 137-178, July.
    23. Noelia Cámara & David Tuesta, 2018. "Measuring financial inclusion: a multidimensional index," IFC Bulletins chapters, in: Bank for International Settlements (ed.), The role of data in supporting financial inclusion policy, volume 47, Bank for International Settlements.
    24. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
    25. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    26. Åkesson, Maria & Sørensen, Carsten & Eriksson, Carina Ihlström, 2018. "Ambidexterity under digitalization: A tale of two decades of new media at a Swedish newspaper," Scandinavian Journal of Management, Elsevier, vol. 34(3), pages 276-288.
    27. Vijay Narayanan, 2015. "Export Barriers for Small and Medium-sized Enterprises: A Literature Review based on Leonidou’s Model," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 105-123.
    28. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    29. Glenn Hoetker, 2007. "The use of logit and probit models in strategic management research: Critical issues," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 331-343, April.
    30. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    31. Barbieri, Paolo & Boffelli, Albachiara & Elia, Stefano & Fratocchi, Luciano & Kalchschmidt, Matteo, 2022. "How does Industry 4.0 affect international exposure? The interplay between firm innovation and home-country policies in post-offshoring relocation decisions," International Business Review, Elsevier, vol. 31(4).
    32. Roger B. Newson & Milena Falcaro, 2023. "Robit regression in Stata," Stata Journal, StataCorp LLC, vol. 23(3), pages 658-682, September.
    33. Wen Jun & Muhammad Hamid Nasir & Zahid Yousaf & Amira Khattak & Muhammad Yasir & Asad Javed & Syed Hamad Shirazi, 2021. "Innovation performance in digital economy: does digital platform capability, improvisation capability and organizational readiness really matter?," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 25(5), pages 1309-1327, May.
    34. Zhang, Zhouyi & Song, Yi & Cheng, Jinhua & Zhang, Yijun, 2023. "Effects of heterogeneous ICT on critical metal supply: A differentiated perspective on primary and secondary supply," Resources Policy, Elsevier, vol. 83(C).
    35. Greenaway, David & Guariglia, Alessandra & Kneller, Richard, 2007. "Financial factors and exporting decisions," Journal of International Economics, Elsevier, vol. 73(2), pages 377-395, November.
    36. Dana Minbaeva & Torben Pedersen & Ingmar Björkman & Carl F Fey & Hyeon Jeong Park, 2014. "MNC knowledge transfer, subsidiary absorptive capacity and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 38-51, January.
    37. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    38. Roy, Vivekananda, 2014. "Efficient estimation of the link function parameter in a robust Bayesian binary regression model," Computational Statistics & Data Analysis, Elsevier, vol. 73(C), pages 87-102.
    39. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    40. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    41. Aljumah, Ahmad Ibrahim & Nuseir, Mohammed T. & Alam, Md. Mahmudul, 2021. "Organizational Performance and Capabilities to Analyze Big Data: Do the Ambidexterity and Business Value of Big Data Analytics Matter?," OSF Preprints an8er, Center for Open Science.
    42. repec:osf:osfxxx:an8er_v1 is not listed on IDEAS
    43. Gao, Da & Li, Ge & Yu, Jiyu, 2022. "Does digitization improve green total factor energy efficiency? Evidence from Chinese 213 cities," Energy, Elsevier, vol. 247(C).
    44. Cieślik, Jerzy & Kaciak, Eugene & Thongpapanl, Narongsak (Tek), 2015. "Effect of export experience and market scope strategy on export performance: Evidence from Poland," International Business Review, Elsevier, vol. 24(5), pages 772-780.
    45. Meng Yan & Chaoxian Wang & Weidong Zhang, 2023. "Nonlinear impacts of information and communications technology investment on industrial structure upgrading: the role of marketization," Applied Economics Letters, Taylor & Francis Journals, vol. 30(3), pages 336-342, February.
    46. Dana B Minbaeva & Torben Pedersen & Ingmar Björkman & Carl F Fey, 2014. "A retrospective on: MNC knowledge transfer, subsidiary absorptive capacity, and HRM," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 52-62, January.
    47. YoungKi Park & Paul A. Pavlou & Nilesh Saraf, 2020. "Configurations for Achieving Organizational Ambidexterity with Digitization," Information Systems Research, INFORMS, vol. 31(4), pages 1376-1397, December.
    48. Doan, Ngoc Thang & Vu, Thi Kim Chi & Nguyen, Thi Cam Thuy & Nguyen, Thi Hong Hai & Nguyen, Kieu Trang, 2020. "Cash-in-advance, export decision and financial constraints: Evidence from cross-country firm-level data," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 75-92.
    49. Zhou, Fengxiu & Wen, Huwei & Lee, Chien-Chiang, 2022. "Broadband infrastructure and export growth," Telecommunications Policy, Elsevier, vol. 46(5).
    50. Belitski, Maksim & Korosteleva, Julia & Piscitello, Lucia, 2023. "Digital affordances and entrepreneurial dynamics: New evidence from European regions," Technovation, Elsevier, vol. 119(C).
    51. Marinella Boccia & Anna Maria Ferragina & Stefano Iandolo, 2022. "Follow the cloud! The impact of ICT on Italian provinces’ trade," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 667-690, December.
    52. Elia, Stefano & Giuffrida, Maria & Mariani, Marcello M. & Bresciani, Stefano, 2021. "Resources and digital export: An RBV perspective on the role of digital technologies and capabilities in cross-border e-commerce," Journal of Business Research, Elsevier, vol. 132(C), pages 158-169.
    53. Ana M. Fernandes & Peter J. Klenow & Sergii Meleshchuk & Martha Denisse Pierola & Andrés Rodríguez- Clare, 2023. "The Intensive Margin in Trade: How Big and How Important?," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(3), pages 320-354, July.
    54. Ernesto Cassetta & Umberto Monarca & Ivano Dileo & Claudio Di Berardino & Marco Pini, 2020. "The relationship between digital technologies and internationalisation. Evidence from Italian SMEs," Industry and Innovation, Taylor & Francis Journals, vol. 27(4), pages 311-339, April.
    55. Lin, Boqiang & Huang, Chenchen, 2023. "Nonlinear relationship between digitization and energy efficiency: Evidence from transnational panel data," Energy, Elsevier, vol. 276(C).
    56. Di Vaio, Assunta & Palladino, Rosa & Pezzi, Alberto & Kalisz, David E., 2021. "The role of digital innovation in knowledge management systems: A systematic literature review," Journal of Business Research, Elsevier, vol. 123(C), pages 220-231.
    57. Edmundas Kazimieras Zavadskas & Abbas Mardani & Zenonas Turskis & Ahmad Jusoh & Khalil MD Nor, 2016. "Development of TOPSIS Method to Solve Complicated Decision-Making Problems — An Overview on Developments from 2000 to 2015," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 645-682, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yan, Ji & Tsinopoulos, Christos & Xiong, Yu, 2021. "Unpacking the impact of innovation ambidexterity on export performance: Microfoundations and infrastructure investment," International Business Review, Elsevier, vol. 30(1).
    2. Bob Walrave & A Georges L Romme & Kim E van Oorschot & Fred Langerak, 2017. "Managerial attention to exploitation versus exploration: toward a dynamic perspective on ambidexterity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(6), pages 1145-1160.
    3. Luqman, Adeel & Wang, Liangyu & Katiyar, Gagan & Agarwal, Reeti & Mohapatra, Amiya Kumar, 2024. "Unpacking associations between positive-negative valence and ambidexterity of big data. Implications for firm performance," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    5. Sverre J. Herstad, 2018. "Beyond ‘related variety’: how inflows of skills shape innovativeness in different industries," European Planning Studies, Taylor & Francis Journals, vol. 26(2), pages 396-420, February.
    6. Karl Aschenbrücker & Tobias Kretschmer, 2022. "Performance-based incentives and innovative activity in small firms: evidence from German manufacturing," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(2), pages 47-64, June.
    7. François Constant & Richard Calvi & Thomas Johnsen, 2020. "Managing tensions between exploitative and exploratory innovation through purchasing function ambidexterity Managing tensions between exploitative and exploratory innovation through purchasing functio," Post-Print hal-02891790, HAL.
    8. Youngtak M. Kim & John R. Busenbark & Seung-Hwan Jeong & Son K. Lam, 2022. "The performance impact of marketing dualities: a response surface approach to resolving empirical challenges," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 915-940, September.
    9. Katsuki Aoki & Miriam Wilhelm, 2017. "The Role of Ambidexterity in Managing Buyer–Supplier Relationships: The Toyota Case," Organization Science, INFORMS, vol. 28(6), pages 1080-1097, December.
    10. Matthews, Lane & Heyden, Mariano L.M. & Zhou, Dan, 2022. "Paradoxical transparency? Capital market responses to exploration and exploitation disclosure," Research Policy, Elsevier, vol. 51(1).
    11. Alexander Linhart & Maximilian Röglinger & Katharina Stelzl, 2020. "A Project Portfolio Management Approach to Tackling the Exploration/Exploitation Trade-off," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(2), pages 103-119, April.
    12. Ashrafi, Amir & Zareravasan, Ahad, 2022. "An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    13. Kammerlander, Nadine & Burger, Dominik & Fust, Alexander & Fueglistaller, Urs, 2015. "Exploration and exploitation in established small and medium-sized enterprises: The effect of CEOs' regulatory focus," Journal of Business Venturing, Elsevier, vol. 30(4), pages 582-602.
    14. Veider, Viktoria & Matzler, Kurt, 2016. "The ability and willingness of family-controlled firms to arrive at organizational ambidexterity," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 105-116.
    15. Huigang Liang & Nianxin Wang & Yajiong Xue, 2022. "Juggling Information Technology (IT) Exploration and Exploitation: A Proportional Balance View of IT Ambidexterity," Information Systems Research, INFORMS, vol. 33(4), pages 1386-1402, December.
    16. Ha, Le Thanh & Thanh, To Trung & Thang, Doan Ngoc & Anh, Pham Thi Hoang, 2021. "Bribery, export decisions, and institutional constraints: Evidence from cross-country firm-level data," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 585-612.
    17. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    18. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    19. Wenke, Kathrin & Zapkau, Florian B. & Schwens, Christian, 2021. "Too small to do it all? A meta-analysis on the relative relationships of exploration, exploitation, and ambidexterity with SME performance," Journal of Business Research, Elsevier, vol. 132(C), pages 653-665.
    20. Yasser Alizadeh & Antonie J. Jetter, 2019. "Pathways for Balancing Exploration and Exploitation in Innovations: A Review and Expansion of Ambidexterity Theory," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-33, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:45:y:2024:i:4:p:1944-1964. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.