Developing EMNEs’ ambidextrous dynamic capabilities to cope with overseas stigma: A case study of parent-subsidiary resource orchestration

The intensifying trend of deglobalization exacerbates the overseas stigma faced by Emerging Market Multinational Enterprises (EMNEs), making the development of coping capabilities an urgent challenge. Adopting a longitudinal single-case study approach, we examine an internationally leading industrial valve manufacturer headquartered in China to categorize the types of overseas stigma and to reveal the mechanism underlying the development of ambidextrous dynamic capabilities for coping with stigma. From the perspectives of dynamic capabilities and resource orchestration between parent and subsidiary companies, this study identifies the microfoundations for developing ambidextrous dynamic capabilities to cope with overseas stigma and reveals the corresponding response logics. These findings contribute to the literature on EMNEs' ambidextrous dynamic capabilities by revealing the micro-foundation for developing these capabilities in the context of overseas stigma. Additionally, by identifying the types of overseas stigma, response mechanisms, and underlying logics, this research enriches the literature on overseas stigma management and offers significant practical implications for EMNEs confronting such challenges.