IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v186y2023i4d10.1007_s10551-023-05437-6.html
   My bibliography  Save this article

MNEs’ Ambidexterity Strategies and Moral Conflicts: The Case of Google in China

Author

Listed:
  • Shuxin Zhong

    (Hohai University)

  • Xiaoyang Zhao

    (Hohai University)

  • Juan Song

    (Central South University)

Abstract

Multinational enterprises (MNEs) must often address moral conflicts given their responsibilities to meet conflicting demands from diverse stakeholders in transnational operations. Thus, this study constructs a comprehensive theoretical framework to understand the co-evolution between MNEs’ ambidexterity strategies and moral conflicts by incorporating studies on institutional theory and strategic management. Through a longitudinal case study, we find that the balance of three dimensions of ambidexterity strategies influences the content and intensity of MNEs’ moral conflicts by shaping the dual structure of stakeholders from home and host countries. Further, moral conflicts reshape the balance of ambidexterity strategies by the pressure of legitimacy and performance. Hence, to achieve better performance in transnational operations, MNEs must not only pay attention to the contingent ambidexterity strategies in dynamic environments, but also leverage the fitness among different dimensions of ambidexterity strategies. The findings provide implications for MNEs’ transnational operations in the increasingly complex global business.

Suggested Citation

  • Shuxin Zhong & Xiaoyang Zhao & Juan Song, 2023. "MNEs’ Ambidexterity Strategies and Moral Conflicts: The Case of Google in China," Journal of Business Ethics, Springer, vol. 186(4), pages 781-796, September.
  • Handle: RePEc:kap:jbuset:v:186:y:2023:i:4:d:10.1007_s10551-023-05437-6
    DOI: 10.1007/s10551-023-05437-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-023-05437-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10551-023-05437-6?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. David Tan & Justin Tan, 2017. "Far from the Tree? Do Private Entrepreneurs Agglomerate Around Public Sector Incumbents During Economic Transition?," Organization Science, INFORMS, vol. 28(1), pages 113-132, February.
    2. Stark, Andrew, 2015. "Inverting Donaldson’s Framework: A Managerial Approach To International Conflicts Of Cultural And Economic Norms," Business Ethics Quarterly, Cambridge University Press, vol. 25(4), pages 535-558, October.
    3. Prange, Christiane & Verdier, Sylvie, 2011. "Dynamic capabilities, internationalization processes and performance," Journal of World Business, Elsevier, vol. 46(1), pages 126-133, January.
    4. Justin Tan & Anna Tan, 2012. "Business Under Threat, Technology Under Attack, Ethics Under Fire: The Experience of Google in China," Journal of Business Ethics, Springer, vol. 110(4), pages 469-479, November.
    5. Justin Tan & Irene Chow, 2009. "Isolating Cultural and National Influence on Value and Ethics: A Test of Competing Hypotheses," Journal of Business Ethics, Springer, vol. 88(1), pages 197-210, April.
    6. Magali A. Delmas & Michael W. Toffel, 2008. "Organizational responses to environmental demands: opening the black box," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1027-1055, October.
    7. Royston Greenwood & Amalia Magán Díaz & Stan Xiao Li & José Céspedes Lorente, 2010. "The Multiplicity of Institutional Logics and the Heterogeneity of Organizational Responses," Organization Science, INFORMS, vol. 21(2), pages 521-539, April.
    8. Carlos Garcia‐Pont & J. Ignacio Canales & Fabrizio Noboa, 2009. "Subsidiary Strategy: The Embeddedness Component," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 182-214, March.
    9. Justin Tan, 2009. "Institutional Structure and Firm Social Performance in Transitional Economies: Evidence of Multinational Corporations in China," Journal of Business Ethics, Springer, vol. 86(2), pages 171-189, March.
    10. Esben Pedersen & Wencke Gwozdz, 2014. "From Resistance to Opportunity-Seeking: Strategic Responses to Institutional Pressures for Corporate Social Responsibility in the Nordic Fashion Industry," Journal of Business Ethics, Springer, vol. 119(2), pages 245-264, January.
    11. Dima Jamali & Ramez Mirshak, 2010. "Business-Conflict Linkages: Revisiting MNCs, CSR, and Conflict," Journal of Business Ethics, Springer, vol. 93(3), pages 443-464, May.
    12. 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.
    13. David Chandler, 2014. "Organizational Susceptibility to Institutional Complexity: Critical Events Driving the Adoption and Implementation of the Ethics and Compliance Officer Position," Organization Science, INFORMS, vol. 25(6), pages 1722-1743, December.
    14. Eden, Lorraine & Molot, Maureen Appel, 2002. "Insiders, outsiders and host country bargains," Journal of International Management, Elsevier, vol. 8(4), pages 359-388.
    15. Patrick Regnér & Jesper Edman, 2014. "MNE institutional advantage: How subunits shape, transpose and evade host country institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(3), pages 275-302, April.
    16. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Eric Yanfei Zhao & Greg Fisher & Michael Lounsbury & Danny Miller, 2017. "Optimal distinctiveness: Broadening the interface between institutional theory and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 93-113, January.
    17. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    18. Justin Tan & David Tan, 2005. "Environment–strategy co‐evolution and co‐alignment: a staged model of Chinese SOEs under transition," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 141-157, February.
    19. Glenn B. Voss & Zannie Giraud Voss, 2013. "Strategic Ambidexterity in Small and Medium-Sized Enterprises: Implementing Exploration and Exploitation in Product and Market Domains," Organization Science, INFORMS, vol. 24(5), pages 1459-1477, October.
    20. Christiane Prange & Sylvie Verdier, 2011. "Dynamic capabilities, internationalization processes and performance," Post-Print hal-02312587, HAL.
    21. Jing-Lin Duanmu, 2014. "State-owned MNCs and host country expropriation risk: The role of home state soft power and economic gunboat diplomacy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(8), pages 1044-1060, October.
    22. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    23. Justin Tan, 2009. "Multinational Corporations and Social Responsibility in Emerging Markets: Opportunities and Challenges for Research and Practice," Journal of Business Ethics, Springer, vol. 86(2), pages 151-153, March.
    24. Pamela S. Tolbert & Robert J. David & Wesley D. Sine, 2011. "Studying Choice and Change: The Intersection of Institutional Theory and Entrepreneurship Research," Organization Science, INFORMS, vol. 22(5), pages 1332-1344, October.
    25. Gary Dann & Neil Haddow, 2008. "Just Doing Business or Doing Just Business: Google, Microsoft, Yahoo! and the Business of Censoring China’s Internet," Journal of Business Ethics, Springer, vol. 79(3), pages 219-234, May.
    26. Dorothee Baumann-Pauly & Andreas Georg Scherer & Guido Palazzo, 2016. "Managing Institutional Complexity: A Longitudinal Study of Legitimacy Strategies at a Sportswear Brand Company," Journal of Business Ethics, Springer, vol. 137(1), pages 31-51, August.
    27. J. Hamilton & Stephen Knouse & Vanessa Hill, 2009. "Google in China: A Manager-Friendly Heuristic Model for Resolving Cross-Cultural Ethical Conflicts," Journal of Business Ethics, Springer, vol. 86(2), pages 143-157, May.
    28. 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.
    29. James Faulconbridge & Daniel Muzio, 2016. "Global Professional Service Firms and the Challenge of Institutional Complexity: ‘Field Relocation' as a Response Strategy," Journal of Management Studies, Wiley Blackwell, vol. 53(1), pages 89-124, January.
    30. Constantine Andriopoulos & Marianne W. Lewis, 2009. "Exploitation-Exploration Tensions and Organizational Ambidexterity: Managing Paradoxes of Innovation," Organization Science, INFORMS, vol. 20(4), pages 696-717, August.
    31. Christina Fang & Jeho Lee & Melissa A. Schilling, 2010. "Balancing Exploration and Exploitation Through Structural Design: The Isolation of Subgroups and Organizational Learning," Organization Science, INFORMS, vol. 21(3), pages 625-642, June.
    32. Ravi Ramamurti, 2001. "The Obsolescing ‘Bargaining Model’? MNC-Host Developing Country Relations Revisited," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 23-39, March.
    33. Geoffrey Jones & Tarun Khanna, 2006. "Bringing history (back) into international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 453-468, July.
    34. Maria Vincenza Ciasullo & Raffaella Montera & Nicola Cucari & Francesco Polese, 2020. "How an international ambidexterity strategy can address the paradox perspective on corporate sustainability: Evidence from Chinese emerging market multinationals," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2110-2129, July.
    35. Chenjian Zhang & Justin Tan & David Tan, 2016. "Fit by adaptation or fit by founding? A comparative study of existing and new entrepreneurial cohorts in China," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 911-931, May.
    36. Valentina Marano & Tatiana Kostova, 2016. "Unpacking the Institutional Complexity in Adoption of CSR Practices in Multinational Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 53(1), pages 28-54, January.
    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. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    2. Karafyllia, Maria & Zucchella, Antonella, 2017. "Synergies and tensions between and within domestic and international market activities of firms," International Business Review, Elsevier, vol. 26(5), pages 942-958.
    3. Priyono Anjar & Nursyamsiah Siti & Darmawan Baziedy A., 2019. "Managing ambidexterity in internationalisation of SMEs from an emerging country: A dynamic capability perspective," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 10(3), pages 7-26, December.
    4. Saka-Helmhout, Ayse, 2020. "Institutional agency by MNEs: A review and future research agenda," Journal of International Management, Elsevier, vol. 26(2).
    5. Juha Uotila, 2018. "Punctuated equilibrium or ambidexterity: dynamics of incremental and radical organizational change over time," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 131-148.
    6. Telma Mendes & Vítor Braga & Carina Silva & Vanessa Ratten, 2023. "Taking a closer look at the regionally clustered firms: How can ambidexterity explain the link between management, entrepreneurship, and innovation in a post-industrialized world?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2007-2053, December.
    7. Úbeda-García, Mercedes & Claver-Cortés, Enrique & Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio, 2020. "Toward a dynamic construction of organizational ambidexterity: Exploring the synergies between structural differentiation, organizational context, and interorganizational relations," Journal of Business Research, Elsevier, vol. 112(C), pages 363-372.
    8. Michael Yao-Ping Peng & Ku-Ho Lin & Dennis Liute Peng & Peihua Chen, 2019. "Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High-Tech Firms," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    9. Angeloantonio Russo & Rosamartina Schena, 2021. "Ambidexterity in the context of SME alliances: Does sustainability have a role?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 606-615, March.
    10. Christine Chou & Steven O. Kimbrough, 2016. "An agent-based model of organizational ambidexterity decisions and strategies in new product development," Computational and Mathematical Organization Theory, Springer, vol. 22(1), pages 4-46, March.
    11. Bruyaka, Olga & Prange, Christiane, 2020. "International cultural ambidexterity: Balancing tensions of foreign market entry into distant and proximate cultures," Journal of Business Research, Elsevier, vol. 118(C), pages 491-506.
    12. Jan Ossenbrink & Joern Hoppmann & Volker H. Hoffmann, 2019. "Hybrid Ambidexterity: How the Environment Shapes Incumbents’ Use of Structural and Contextual Approaches," Organization Science, INFORMS, vol. 30(6), pages 1319-1348, November.
    13. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    14. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    15. Glenn B. Voss & Zannie Giraud Voss, 2013. "Strategic Ambidexterity in Small and Medium-Sized Enterprises: Implementing Exploration and Exploitation in Product and Market Domains," Organization Science, INFORMS, vol. 24(5), pages 1459-1477, October.
    16. Dasí, Àngels & Iborra, María & Safón, Vicente, 2015. "Beyond path dependence: Explorative orientation, slack resources, and managerial intentionality to internationalize in SMEs," International Business Review, Elsevier, vol. 24(1), pages 77-88.
    17. van Assen, Marcel F., 2020. "Empowering leadership and contextual ambidexterity – The mediating role of committed leadership for continuous improvement," European Management Journal, Elsevier, vol. 38(3), pages 435-449.
    18. Filippini, Roberto & Güttel, Wolfgang H. & Nosella, Anna, 2012. "Ambidexterity and the evolution of knowledge management initiatives," Journal of Business Research, Elsevier, vol. 65(3), pages 317-324.
    19. 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.
    20. 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).

    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:kap:jbuset:v:186:y:2023:i:4:d:10.1007_s10551-023-05437-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.