Antecedents of organizational ambidexterity: an empirical investigation of foreign ventures in an emerging market

The purpose of this paper is to examine the antecedents of organizational ambidexterity of foreign ventures in an emerging market. Organizational ambidexterity, the simultaneous pursuit of exploration and exploitation, represents a key innovation strategy. Yet, the driving factors of such innovation strategies for foreign ventures competing in emerging markets have been underresearched. In this study, unpacking the construct of organizational ambidexterity into two dimensions (i.e. the combined dimension [CD] and the balance dimension [BD]), the authors aim to investigate how firm-level and industry-level factors drive foreign ventures in pursuing exploration and exploitation and maximizing the benefits of both.

This study adopts the hierarchical multiple regression approach using a sample of foreign ventures operating in high-tech manufacturing industries in China.

The authors find that the firm-level factor of strategic flexibility leads positively to the CD of organizational ambidexterity, whereas the industry-level factor of technological turbulence has a significantly positive impact on the BD.

This study provides important insights into the driving factors of organizational ambidexterity for foreign ventures competing in emerging markets.