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Achieving Superior Internationalization Through Strategic Ambidexterity

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  • MARY HAN

    (Ryerson University, School of Business Management, Canada)

Abstract

In this paper, I examine the optimal approach to internationalization. Drawing from the ambidexterity literature, I build on the concept of structural ambidexterity and suggest that the optimal approach occurs when firms pursue 'strategic ambidexterity,' which is characterized by simultaneously executing paradoxical strategies of pro-profit and pro-growth. I examine this approach through empirical study based on in-depth field research of two cases: Merrill Lynch, a multinational enterprise and Comdirect Bank, an international new venture. I find that a) firms that pursue strategic ambidexterity in their internationalization effort achieve above-average internationalization performance in the short term; and b) firms that pursue strategic ambidexterity in their internationalization effort also achieve above-average firm-level performance in the long term. I conclude that strategic ambidexterity is the optimal strategy by which to achieve superior performance.

Suggested Citation

  • Mary Han, 2007. "Achieving Superior Internationalization Through Strategic Ambidexterity," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 43-77.
    • Handle: RePEc:wsi:jecxxx:v:15:y:2007:i:01:n:s0218495807000046
    DOI: 10.1142/S0218495807000046
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    References listed on IDEAS

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    1. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0, October.
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    Cited by:

    1. 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.
    2. David B. Audretsch & Maribel Guerrero, 2023. "Is ambidexterity the missing link between entrepreneurship, management, and innovation?," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1891-1918, December.
    3. Riviezzo, Angelo & Garofano, Antonella & Napolitano, Maria Rosaria & Marino, Vittoria, 2015. "Moving forward or running to standstill? Exploring the nature and the role of family firms’ strategic orientation," Journal of Family Business Strategy, Elsevier, vol. 6(3), pages 190-205.
    4. Vahlne, Jan-Erik & Jonsson, Anna, 2017. "Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA," International Business Review, Elsevier, vol. 26(1), pages 57-70.
    5. Ramya T. Venkateswaran, 2023. "Is there an illusion of symmetry in cultural distance from Asia–pacific Emnes? the role of business groups in navigating cultural distance through ambidextrous learning," Asia Pacific Journal of Management, Springer, vol. 40(3), pages 1169-1215, September.
    6. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2013. "International ambidexterity and firm performance in small emerging economies," Journal of World Business, Elsevier, vol. 48(1), pages 58-67.
    7. Christofi, Michael & Vrontis, Demetris & Cadogan, John W., 2021. "Micro-foundational ambidexterity and multinational enterprises: A systematic review and a conceptual framework," International Business Review, Elsevier, vol. 30(1).
    8. Gordian Rättich & Kim Clark & Evi Hartmann, 2011. "Performance measurement and antecedents of early internationalizing firms: A systematic assessment," Working Papers 0031, College of Business, University of Texas at San Antonio.
    9. Olga Kassotaki, 2022. "Review of Organizational Ambidexterity Research," SAGE Open, , vol. 12(1), pages 21582440221, March.

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