Shengsheng Huang and John Cantwell
This paper proposes locational ambidexterity as a location-specific factor based on an operation flexibility perspective, and explores why and how multinational corporations…
Abstract
Purpose
This paper proposes locational ambidexterity as a location-specific factor based on an operation flexibility perspective, and explores why and how multinational corporations (MNCs) proactively deal with uncertainty by valuing locational ambidexterity in making location decisions.
Design/methodology/approach
Location choice data for foreign direct investment (FDI) at a sub-national level in China is used to test the role of locational ambidexterity.
Findings
We find that FDI generally prefers locations with high ambidexterity. Moreover, investments from a heterogeneous country context are more sensitive to locational ambidexterity than those from a similar country context. However, there is no significant evidence that wholly owned investments favor locational ambidexterity more than do international joint ventures.
Research limitations/implications
An alternative operationalization of locational ambidexterity may be needed. Future research could explore the sources of locational ambidexterity, identify other firm- and industry-level factors that could alter the value of ambidexterity, investigate how MNCs integrate locational ambidexterity into organization-specific option creation strategies and test the ambidexterity perspective with micro-level location choice data.
Practical implications
Locational ambidexterity may reduce the overall risk and adjustment cost of future changes. FDI may choose a location with high ambidexterity, i.e. a balanced portfolio of location-specific determinants, under uncertainty about the future.
Originality/value
Drawing on the notion of location flexibility from Buckley and Casson (1998), this study identifies a new location character, locational ambidexterity, and proposes that MNCs address uncertainty by choosing ambidextrous locations that offer more flexibility for MNCs to change or respond to potential volatility. Selecting locations with high ambidexterity is thus an alternative and complement to the organization-specific flexibility creation strategies suggested by the literature on real option and flexibility.
Details
Keywords
– This article aims to present the second part of an interview with Dr Xiao-Ping Chen. The focus is on her experience in, and insight on, Chinese management research.
Abstract
Purpose
This article aims to present the second part of an interview with Dr Xiao-Ping Chen. The focus is on her experience in, and insight on, Chinese management research.
Design/methodology/approach
This paper is based on a recent interview with Dr Xiao-Ping Chen.
Findings
Dr Xiao-Ping Chen shared her research experience and insight in the following aspects: identifying topics in Chinese management research, collaborating with Chinese domestic scholars, and approaching a research question or idea to make research fruitful with evolving research agenda on Chinese guanxi. She also shared her insights on exploring new research topics vs following or extending others' ideas, and how the gap between research and practice might be bridged.
Research limitations/implications
Dr Chen's research experience and insights provide an exemplary case for junior scholars to deal with the challenges in conducting and publishing Chinese management research, particularly in how to take an “insider's view” in identifying and engaging in interesting and valuable research.
Originality/value
The interview profiles a picture of a scholar in Chinese management research.