Configuring subsidiary performance in ambidextrous networks: The role of top management team diversity and autonomy

Subsidiaries are at the frontline of value creation in modern multinational enterprises. This research is among the first to apply an asset bundling framework to investigate how foreign‐owned subsidiaries achieve higher performance outcomes via ambidextrous network management, that is, with strong e...

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Bibliographic Details
Published in:Thunderbird international business review 2022-09, Vol.64 (5), p.405-427
Main Authors: Dahms, Sven, Cabrilo, Sladjana, Kingkaew, Suthikorn
Format: Article
Language:English
Subjects:
ambidexterity
Emerging markets
Exploitation
fsQCA
Interorganizational networks
Management
networks
Subsidiaries
Value creation
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Summary:Subsidiaries are at the frontline of value creation in modern multinational enterprises. This research is among the first to apply an asset bundling framework to investigate how foreign‐owned subsidiaries achieve higher performance outcomes via ambidextrous network management, that is, with strong exploitative (intraorganizational) as well as strong explorative (interorganizational) network relationships, in emerging markets. Ambidextrous network management may be supplemented by decision‐making autonomy and top management team national diversity. The framework is tested on a sample of subsidiaries located in both Thailand and Singapore. The analysis revealed several configurations that make subsidiaries with ambidextrous networks become successful. Our findings demonstrate to subsidiary managers that exploitation and exploration are complementary for long‐term success in a subsidiary, but that the relative balance between the two is likely to vary according to the nature of subsidiary context‐specific assets.
ISSN:1096-4762
1520-6874
DOI:10.1002/tie.22262