Contextualizing international ambidextrous strategies of Chinese multinational enterprises

Abstract

This article helps explain the theoretical mechanisms of the contextual influence of ambidextrous foreign acquisition strategies of Chinese multinational enterprises (MNEs) in Europe. Based on the National Business System approach, we demonstrate that these strategies are contextually driven and institutionally conditioned. We use fuzzy‐set qualitative comparative analysis to identify the configurations of factors affecting the strategies of 829 mergers and acquisitions (M&As) in 29 countries in 1992–2019. We propose a new measure for the organizational ambidexterity construct based on the nature and type of M&As. Our results show that conglomerate affiliation, state ownership, and international business experience affect the deployment of ambidextrous acquisition strategies, while outward foreign direct investment (FDI) policies have a positive effect only for individual firms or when host country innovation environment is well developed. Finally, smaller individual MNE early internationalizers are more likely to deploy acquisition ambidexterity when the government adopts outward FDI policies.

Ambidextrous strategies in turbulent times: the experience of manufacturing SMEs during the COVID-19 pandemic

“…International business scholars suggest that firms may positively adopt ambidextrous strategies to internationalize and expand their market, being the organization able to overcome the different trade-offs in going global (i.e. location conditions or forms of governance) (Avioutskii and Tensaout, 2022). From this point of view, ambidexterity can be approached also as a strategic dimension that could help firms in facing the challenges of turbulent environments.…”

Home country influence in cross-border mergers and acquisitions by emerging market firms: a systematic review

“…In addition, studies shed light on specific policies initiated by the home government in emerging markets, especially in China, and their effects on EMFs' CBMAs. For example, in the pre-M&A stage, they stimulate M&As in industries new to acquirers (Avioutskii and Tensaout, 2022) as per the "Made in China 2025" program (Fuest et al, 2022) and in countries involved in the Belt and Road Initiative (Fuest et al, 2022;. Government-led cultural promotion benefits the completion of Chinese CBMAs in host countries involved in the Belt and Road Initiative (Liu et al, 2020).…”

“…That is, while government support is mostly seen as a facilitating factor (i.e. opportunity) (Avioutskii and Tensaout, 2022;Deng, 2009;Zhang, 2022), strong government intervention is a typical sign of poor institutional quality from an institutional economics perspective (Cuervo-Cazurra et al, 2019); consequently, this can constrain EMFs' CBMAs (i.e. barrier) (Dong et al, 2019;He and Zhang, 2018;Hsu and Cao, 2021).…”

Ambidextrous organizations in and from emerging markets—Editors' special issue introduction

“…The fourth study “ Contextualizing international ambidextrous strategies of Chinese MNEs ” by Avioutskii and Tensaout (2022) speaks about the impact of ambidextrous strategies of Chinese MNEs in context of foreign acquisitions in Europe. This research conducted across 29 countries and 829 mergers and acquisitions (data collected between 1992 and 2019), on the basis of National Business System approach shows that conglomerate affiliation, state ownership and international business experience have direct impact on execution of ambidextrous acquisition strategies.…”