Unpacking the effect of strategic ambidexterity on performance: a cross-country comparison of MMNEs developing product-service innovation

Oscar F. Bustinza, Ferran Vendrell-Herrero, Emanuel Gomes

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

This study tests whether strategic ambidexterity improves Product-service innovation (PSI) outcomes for manufacturing multinational enterprises (MMNEs). It also tests successful pathways to develop PSI properly by organizing exploitation and exploration activities. Data from a survey of 338 MMNEs are analysed through Structural Equations Modelling. The sample contains firms from five world regions, including emerging economies. This approach enables contrast to determine cross-country heterogeneity in PSI outcomes. The results show that, to maximise firm performance, PSI must be developed through a sequential Exploitation-Exploration pathway. Although this optimal sequence is consistent across all world regions (except Japan), noticeable contextual differences emerge in the relative importance of exploration and exploitation to firm performance. Our findings show that exploitation (i.e., cost efficiency through PSI design) and exploration (i.e., PSI R&D) capabilities are equally important in emerging economies.

Original languageEnglish
Article number101569
JournalInternational Business Review
Volume26
Issue number6
DOIs
Publication statusPublished - Dec 2020

Keywords

  • Manufacturing multinational enterprises
  • Performance
  • Product-service innovation
  • Strategic ambidexterity

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