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The role of a local network in achieving contextual ambidexterity in foreign subsidiaries operating in Brazil – a multi-level analysis

The role of a local network in achieving contextual ambidexterity in foreign subsidiaries... This study aims to examine how knowledge acquired from a network built on trust and commitment can increase the management team’s effectiveness (MTE) in implementing an ambidextrous subsidiary.Design/methodology/approachAn online survey was conducted with top managers of foreign subsidiaries operating in Brazil. A total of 289 valid respondents were statistically evaluated using the partial least squares-structural equation modeling technique to test the model and hypotheses. A multilevel analysis research methodology was applied because the conceptual model relates constructs at the micro (political behavior and management team effectiveness) and macro (improved external ties [IET] and contextual ambidexterity [CA]) levels.FindingsSubsidiaries need to improve the MTE to achieve CA. The authors found that the local network built on trust and commitment facilitates access to differentiated knowledge. Unique knowledge reduces conflicts amongst team members and enhances explorative and exploitative activities to reach CA.Practical implicationsThe authors suggest that top managers can increase decision-making effectiveness by using trust and commitment to building a robust local network with selected stakeholders. Privileged knowledge allows attaining constructive political behavior (PB) and leverages exploitative and explorative activities.Originality/valueThe novelty resides in three aspects. First refers to linking CA and foreign subsidiaries in Brazil. Second, suggesting that IET has a double effect, as a moderator between PB and MTE, and concurrently has a direct effect on CA. Third, suggesting that capturing valuable resources from a local network built on the pillars of trust and commitment. Fourth, the authors examine the influence of differentiated knowledge on MTE. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of International Business and Strategy Emerald Publishing

The role of a local network in achieving contextual ambidexterity in foreign subsidiaries operating in Brazil – a multi-level analysis

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References (68)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2059-6014
eISSN
2059-6014
DOI
10.1108/ribs-03-2021-0045
Publisher site
See Article on Publisher Site

Abstract

This study aims to examine how knowledge acquired from a network built on trust and commitment can increase the management team’s effectiveness (MTE) in implementing an ambidextrous subsidiary.Design/methodology/approachAn online survey was conducted with top managers of foreign subsidiaries operating in Brazil. A total of 289 valid respondents were statistically evaluated using the partial least squares-structural equation modeling technique to test the model and hypotheses. A multilevel analysis research methodology was applied because the conceptual model relates constructs at the micro (political behavior and management team effectiveness) and macro (improved external ties [IET] and contextual ambidexterity [CA]) levels.FindingsSubsidiaries need to improve the MTE to achieve CA. The authors found that the local network built on trust and commitment facilitates access to differentiated knowledge. Unique knowledge reduces conflicts amongst team members and enhances explorative and exploitative activities to reach CA.Practical implicationsThe authors suggest that top managers can increase decision-making effectiveness by using trust and commitment to building a robust local network with selected stakeholders. Privileged knowledge allows attaining constructive political behavior (PB) and leverages exploitative and explorative activities.Originality/valueThe novelty resides in three aspects. First refers to linking CA and foreign subsidiaries in Brazil. Second, suggesting that IET has a double effect, as a moderator between PB and MTE, and concurrently has a direct effect on CA. Third, suggesting that capturing valuable resources from a local network built on the pillars of trust and commitment. Fourth, the authors examine the influence of differentiated knowledge on MTE.

Journal

Review of International Business and StrategyEmerald Publishing

Published: Jan 25, 2023

Keywords: Contextual ambidexterity; External network; Politic behavior; Management team; Microfoundations

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