IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v29y2020i6s0969593120300482.html
   My bibliography  Save this article

The micro-foundations of strategic ambidexterity: Chinese cross-border M&As, Mid-View thinking and integration management

Author

Listed:
  • Zhang, Xiaotao
  • Liu, Yipeng
  • Tarba, Shlomo Y.
  • Giudice, Manlio Del

Abstract

Chinese cross-border mergers and acquisitions (M&As) display several unique properties in relation to the ways in which their international business operations are organised and managed. Their seemingly puzzling ‘light-touch’ integration approach can be significantly understood from a strategic ambidexterity perspective: on the one hand, the ‘light-touch’ enables the exploitation of the targets’ existing knowledge bases; on the other hand, elements of the ‘light-touch’ facilitate the exploration of the new knowledge arising from the collaboration between targets and acquirers. However, an important theoretical gap remains: why do Chinese companies deploy such a strategic ambidexterity approach in their post-acquisition integrations? This paper aims to fill this gap by proposing Mid-View thinking as a micro-foundation of strategic ambidexterity in integration management from a cultural and philosophical perspective. To illuminate our conceptualization and argument, we conducted qualitative in-depth interviews with CEOs/high-level managers of acquired German companies. Communication approach and organizational control—as two critical aspects in integration management—reveal how Mid-View thinking can serve as a micro-foundation of strategic ambidexterity. We conclude this paper by presenting its theoretical contributions, managerial implications, and future research directions.

Suggested Citation

  • Zhang, Xiaotao & Liu, Yipeng & Tarba, Shlomo Y. & Giudice, Manlio Del, 2020. "The micro-foundations of strategic ambidexterity: Chinese cross-border M&As, Mid-View thinking and integration management," International Business Review, Elsevier, vol. 29(6).
    • Handle: RePEc:eee:iburev:v:29:y:2020:i:6:s0969593120300482
    DOI: 10.1016/j.ibusrev.2020.101710
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593120300482
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2020.101710?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ingmar Björkman & Günter K Stahl & Eero Vaara, 2007. "Cultural differences and capability transfer in cross-border acquisitions: the mediating roles of capability complementarity, absorptive capacity, and social integration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 658-672, July.
    2. Maurizio Zollo & Harbir Singh, 2004. "Deliberate learning in corporate acquisitions: post‐acquisition strategies and integration capability in U.S. bank mergers," Strategic Management Journal, Wiley Blackwell, vol. 25(13), pages 1233-1256, December.
    3. Rudolf R. Sinkovics & Elfriede Penz & Pervez N. Ghauri, 2008. "Enhancing the Trustworthiness of Qualitative Research in International Business," Management International Review, Springer, vol. 48(6), pages 689-714, December.
    4. Peter J Buckley & L Jeremy Clegg & Hinrich Voss & Adam R Cross & Xin Liu & Ping Zheng, 2018. "A retrospective and agenda for future research on Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 4-23, January.
    5. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    6. Ai, Qi & Tan, Hui, 2020. "Uncovering neglected success factors in post-acquisition reverse capability transfer: Evidence from Chinese multinational corporations in Europe," Journal of World Business, Elsevier, vol. 55(3).
    7. Liu, Yipeng & Almor, Tamar, 2016. "How culture influences the way entrepreneurs deal with uncertainty in inter-organizational relationships: The case of returnee versus local entrepreneurs in China," International Business Review, Elsevier, vol. 25(1), pages 4-14.
    8. Tony Fang, 2012. "Yin Yang: A New Perspective on Culture," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(1), pages 25-50, March.
    9. Xing, Yijun & Liu, Yipeng & Tarba, Shlomo & Cooper, Sir Cary L., 2017. "Servitization in mergers and acquisitions: Manufacturing firms venturing from emerging markets into advanced economies," International Journal of Production Economics, Elsevier, vol. 192(C), pages 9-18.
    10. Dean Xu & Klaus E. Meyer, 2013. "Linking Theory and Context: ‘Strategy Research in Emerging Economies’ after Wright et al. (2005)," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1322-1346, November.
    11. Liu, Yipeng & Meyer, Klaus E., 2020. "Boundary spanners, HRM practices, and reverse knowledge transfer: The case of Chinese cross-border acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    12. Yadong Luo, 2020. "Adaptive learning in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1547-1567, December.
    13. Hermann Simon, 2009. "Hidden Champions of the Twenty-First Century," Springer Books, Springer, number 978-0-387-98147-5, June.
    14. Meyer, Klaus E., 2015. "Context in Management Research in Emerging Economies," Management and Organization Review, Cambridge University Press, vol. 11(03), pages 369-377, September.
    15. Fang, Tony, 2012. "Yin Yang: A New Perspective on Culture," Management and Organization Review, Cambridge University Press, vol. 8(1), pages 25-50, March.
    16. Ghauri, Pervez & Fang, Tony, 2001. "Negotiating with the Chinese: a socio-cultural analysis," Journal of World Business, Elsevier, vol. 36(3), pages 303-325, October.
    17. Hughes, Paul & Hughes, Matthew & Stokes, Peter & Lee, Hanna & Rodgers, Peter & Degbey, William Y., 2020. "Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    18. Xing, Yijun & Liu, Yipeng, 2015. "Poetry and Leadership in Light of Ambiguity and Logic of Appropriateness," Management and Organization Review, Cambridge University Press, vol. 11(4), pages 763-793, December.
    19. Rikard Larsson & Sydney Finkelstein, 1999. "Integrating Strategic, Organizational, and Human Resource Perspectives on Mergers and Acquisitions: A Case Survey of Synergy Realization," Organization Science, INFORMS, vol. 10(1), pages 1-26, February.
    20. Wang, Daojuan & Hain, Daniel S. & Larimo, Jorma & Dao, Li T., 2020. "Cultural differences and synergy realization in cross-border acquisitions," International Business Review, Elsevier, vol. 29(3).
    21. Melissa E. Graebner & Koen H. Heimeriks & Quy N. Huy & Eero Vaara, 2017. "The Process of Postmerger Integration : A Review and Agenda for Future Research," Post-Print hal-02276670, HAL.
    22. T. K. Das, 1989. "Organizational Control: An Evolutionary Perspective," Journal of Management Studies, Wiley Blackwell, vol. 26(5), pages 459-475, September.
    23. Helene Tenzer & Markus Pudelko & Anne-Wil Harzing, 2014. "The impact of language barriers on trust formation in multinational teams," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 508-535, June.
    24. He, Shaowei & Khan, Zaheer & Shenkar, Oded, 2018. "Subsidiary capability upgrading under emerging market acquirers," Journal of World Business, Elsevier, vol. 53(2), pages 248-262.
    25. Ahammad, Mohammad Faisal & Tarba, Shlomo Y. & Liu, Yipeng & Glaister, Keith W. & Cooper, Cary L., 2016. "Exploring the factors influencing the negotiation process in cross-border M&A," International Business Review, Elsevier, vol. 25(2), pages 445-457.
    26. Mary Yoko Brannen & Rebecca Piekkari & Susanne Tietze, 2014. "The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 495-507, June.
    27. Klaus E Meyer & Mike W Peng, 2016. "Theoretical foundations of emerging economy business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(1), pages 3-22, January.
    28. Yadong Luo & Rosalie L Tung, 2018. "A general theory of springboard MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 129-152, February.
    29. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 2020. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 538-576, June.
    30. Fang Wu & Rudolf R Sinkovics & S Tamer Cavusgil & Anthony S Roath, 2007. "Overcoming export manufacturers’ dilemma in international expansion," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 283-302, March.
    31. Buckley, Peter J. & Elia, Stefano & Kafouros, Mario, 2014. "Acquisitions by emerging market multinationals: Implications for firm performance," Journal of World Business, Elsevier, vol. 49(4), pages 611-632.
    32. William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
    33. Laura B. Cardinal & Sim B. Sitkin & Chris P. Long, 2004. "Balancing and Rebalancing in the Creation and Evolution of Organizational Control," Organization Science, INFORMS, vol. 15(4), pages 411-431, August.
    34. Melissa E. Graebner & Koen H. Heimeriks & Quy N. Huy & Eero Vaara, 2017. "The Process of Postmerger Integration : A Review and Agenda for Future Research," Post-Print hal-02311973, HAL.
    35. Xing, Yijun & Liu, Yipeng & Tarba, Shlomo Yedidia & Cooper, Cary L., 2016. "Intercultural influences on managing African employees of Chinese firms in Africa: Chinese managers’ HRM practices," International Business Review, Elsevier, vol. 25(1), pages 28-41.
    36. Yipeng Liu & Christoph Lattemann & Yijun Xing & David Dorawa, 2019. "The emergence of collaborative partnerships between knowledge-intensive business service (KIBS) and product companies: the case of Bremen, Germany," Regional Studies, Taylor & Francis Journals, vol. 53(3), pages 376-387, March.
    37. Dirk Holtbrügge & Sue Claire Berning, 2018. "Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support," Management International Review, Springer, vol. 58(1), pages 147-170, February.
    38. Alexander Zimmermann & Sebastian Raisch & Laura B. Cardinal, 2018. "Managing Persistent Tensions on the Frontline: A Configurational Perspective on Ambidexterity," Journal of Management Studies, Wiley Blackwell, vol. 55(5), pages 739-769, July.
    39. Fabian Jintae Froese & Dylan Sutherland & Jeoung Yul Lee & Yipeng Liu & Yuan Pan, 2019. "Challenges for foreign companies in China: implications for research and practice," Asian Business & Management, Palgrave Macmillan, vol. 18(4), pages 249-262, September.
    40. Tina C Ambos & Sebastian H Fuchs & Alexander Zimmermann, 2020. "Managing interrelated tensions in headquarters–subsidiary relationships: The case of a multinational hybrid organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(6), pages 906-932, August.
    41. Stephanie Lu Wang & Yadong Luo & Xiongwen Lu & Jinyun Sun & Vladislav Maksimov, 2014. "Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(2), pages 111-130, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Scuotto, Veronica & Magni, Domitilla & Palladino, Rosa & Nicotra, Melita, 2022. "Triggering disruptive technology absorptive capacity by CIOs. Explorative research on a micro-foundation lens," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    2. Kraus, Patrick & Stokes, Peter & Tarba, Shlomo Y. & Rodgers, Peter & Dekel-Dachs, Ofer & Britzelmaier, Bernd & Moore, Neil, 2022. "The ambidextrous interaction of RBV-KBV and regional social capital and their impact on SME management," Journal of Business Research, Elsevier, vol. 142(C), pages 762-774.
    3. Ferraris, Alberto & Degbey, William Y. & Singh, Sanjay Kumar & Bresciani, Stefano & Castellano, Sylvaine & Fiano, Fabio & Couturier, Jerome, 2022. "Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India," Journal of World Business, Elsevier, vol. 57(2).
    4. Peng Wang & Eugenia Yijun Xing & Xiaotao Zhang & Yipeng Liu, 2022. "Sensemaking and Sustainable Development: Chinese Overseas Acquisitions and the Globalisation of Traditional Chinese Medicine," Global Policy, London School of Economics and Political Science, vol. 13(S1), pages 23-33, April.
    5. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.
    6. Liu, Yipeng, 2020. "The micro-foundations of global business incubation: Stakeholder engagement and strategic entrepreneurial partnerships," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    7. 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).
    8. Pereira, Vijay & Patnaik, Swetketu & Temouri, Yama & Tarba, Shlomo & Malik, Ashish & Bustinza, Oscar, 2021. "A longitudinal micro-foundational investigation into ambidextrous practices in an international alliance context–A case of a biopharma EMNE," International Business Review, Elsevier, vol. 30(1).
    9. Liu, Yipeng & Collinson, Simon & Cooper, Sir Cary & Baglieri, Daniela, 2022. "International business, innovation and ambidexterity: A micro-foundational perspective," International Business Review, Elsevier, vol. 31(3).
    10. Yijun Xing & Yipeng Liu & Fabian Jintae Froese & Manli Huang, 2023. "Advancing Chinese leadership research: review and future directions," Asian Business & Management, Palgrave Macmillan, vol. 22(2), pages 493-508, April.
    11. Wu, Juan & Wang, Daojuan & Morschett, Dirk, 2023. "Light Touch Goes Where? A Longitudinal Study of the Post-Acquisition Integration Paths Adopted by Chinese Multinational Enterprises," Journal of International Management, Elsevier, vol. 29(5).
    12. Zheng, Qiuxia & Noorderhaven, Niels & Du, Jian, 2022. "Making the unlikely marriage work: The integration process of Chinese strategic asset-seeking acquisitions," Journal of World Business, Elsevier, vol. 57(3).
    13. Faroque, Anisur R. & Morrish, Sussie C. & Kuivalainen, Olli & Sundqvist, Sanna & Torkkeli, Lasse, 2021. "Microfoundations of network exploration and exploitation capabilities in international opportunity recognition," International Business Review, Elsevier, vol. 30(1).
    14. Roth, Linus & Corsi, Simone, 2023. "Ambidexterity in a geographic context: A systematic literature review on international exploration and exploitation of knowledge," Technovation, Elsevier, vol. 124(C).
    15. Yipeng Liu & Ralf Bebenroth & Yi Yang, 2022. "East-Meets-West: Mergers and Acquisitions challenges and opportunities in and out of Asia," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 715-744, November.

    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. Liu, Yipeng & Meyer, Klaus E., 2020. "Boundary spanners, HRM practices, and reverse knowledge transfer: The case of Chinese cross-border acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    2. Yipeng Liu & Ralf Bebenroth & Yi Yang, 2022. "East-Meets-West: Mergers and Acquisitions challenges and opportunities in and out of Asia," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 715-744, November.
    3. Ai, Qi & Tan, Hui, 2020. "Uncovering neglected success factors in post-acquisition reverse capability transfer: Evidence from Chinese multinational corporations in Europe," Journal of World Business, Elsevier, vol. 55(3).
    4. Buckley, Peter J & Cui, Lin & Chen, Liang & Li, Yi & Choi, Yoona, 2023. "Following their predecessors’ journey? A review of EMNE studies and avenues for interdisciplinary inquiry," Journal of World Business, Elsevier, vol. 58(2).
    5. Zheng, Qiuxia & Noorderhaven, Niels & Du, Jian, 2022. "Making the unlikely marriage work: The integration process of Chinese strategic asset-seeking acquisitions," Journal of World Business, Elsevier, vol. 57(3).
    6. Degbey, William Y. & Pelto, Elina, 2021. "Customer knowledge sharing in cross-border mergers and acquisitions: The role of customer motivation and promise management," Journal of International Management, Elsevier, vol. 27(4).
    7. Chen, Feiqiong & Liu, Huiqian & Ge, Yuhao, 2021. "How does integration affect industrial innovation through networks in technology-sourcing overseas M&A? A comparison between China and the US," Journal of Business Research, Elsevier, vol. 122(C), pages 281-292.
    8. Jiang Wei & Yang Yang & Sali Li, 2021. "Mirror or no mirror? Architectural design of cross-border integration of Chinese multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1399-1430, December.
    9. Ren, Shuang & Fan, Di & Huang, Xinli & Li, Zijie, 2021. "The micro-foundation of ambidextrous opportunity identification in international expansion," International Business Review, Elsevier, vol. 30(1).
    10. Alexandre Bohas & Pierre-Xavier Meschi, 2023. "In vino vanitas: Social dynamics and performance of Chinese château acquisitions in the Bordeaux vineyards," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(2), pages 306-331, March.
    11. Mike W. Peng & Sergey Lebedev & Cristina O. Vlas & Joyce C. Wang & Jason S. Shay, 2018. "The growth of the firm in (and out of) emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 829-857, December.
    12. Xiaoting Hu & Ximing Yin & Zhanming Jin & Jizhen Li, 2020. "How Do International M&As Affect Rival Firm’s Sustainable Performance? —Empirical Evidence from an Emerging Market," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    13. Cui, Lin & Gao, Qiuling & Guo, Jinyu & Ma, Pengcheng, 2022. "OFDI performance of EMNEs: A review and recommendations for future research," Journal of International Management, Elsevier, vol. 28(3).
    14. Colman, Helene Loe, 2020. "Facilitating integration and maintaining autonomy: The role of managerial action and interaction in post-acquisition cabability transfer," Journal of Business Research, Elsevier, vol. 109(C), pages 148-160.
    15. Anne-Sophie Thelisson & Olivier Meier, 2022. "Managerial biases during a merger process in a government-controlled organization," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1315-1338, December.
    16. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    17. Xing, Yijun & Liu, Yipeng & Tarba, Shlomo & Cooper, Sir Cary L., 2017. "Servitization in mergers and acquisitions: Manufacturing firms venturing from emerging markets into advanced economies," International Journal of Production Economics, Elsevier, vol. 192(C), pages 9-18.
    18. Magnani, Giovanna & Gioia, Denny, 2023. "Using the Gioia Methodology in international business and entrepreneurship research," International Business Review, Elsevier, vol. 32(2).
    19. Yijun Xing & Yipeng Liu & Fabian Jintae Froese & Manli Huang, 2023. "Advancing Chinese leadership research: review and future directions," Asian Business & Management, Palgrave Macmillan, vol. 22(2), pages 493-508, April.
    20. Tobias Kretschmer & Christoph Dehne, 2020. "Organisationsstruktur und Führungsstil nach Akquisitionen – eine empirische Untersuchung [Organizational Structure and Leadership Style after Acquisitions – an Empirical Study]," Schmalenbach Journal of Business Research, Springer, vol. 72(4), pages 479-512, December.

    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:eee:iburev:v:29:y:2020:i:6:s0969593120300482. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    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.