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| The Impact of Internationalization Ambidexterity on Enterprise Innovation Performance:The Double Moderation of Cognitive Institution and Normative Institution |
| Xiao Peng,Yang Jingjing,Liu Sheng,Chen Yifei |
| (Business School, Anhui University, Hefei 230601, China) |
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Abstract As globalization continues to develop, China's 'One Belt, One Road' initiative has encouraged more and more enterprises to engage in cross-border activities to overcome the competitive disadvantages of emerging economies in the international marketplace. The business strategies of enterprises in international markets can be divided into exploitative and exploratory internationalization, with exploitative internationalization helping enterprises to improve their short-term competitiveness and gain current revenues to ensure their current survival, and exploratory internationalization helping enterprises to gain long-term revenues and improve their long-term competitiveness to ensure their future development. There have been difficulties in balancing these two business strategies, but recent studies suggest that it is possible to coordinate these two types of business activities in a balanced way that will enhance the innovation performance. Therefore, this paper aims to examine if and how such an ambidexterity strategy affects enterprise innovation performance. Meanwhile,it is necessary to consider what situational factors affect the impact of an ambidexterity strategy on enterprise innovation performance. However little consideration has been given to the external institutional environment, therefore this paper examines the situational variable of institutional environment which can be further divided into three dimensions, namely moderating, cognitive and normative institutions. The previous studies have focused on the formal institutions such as the moderating institutions, while less research has been conducted on the informal institutions similar to cognitive and normative institutions. It is increasingly claimed that for overseas enterprises, the ability to integrate into the local culture determines whether multinational enterprises can successfully operate in the host country. This paper therefore examines the role of cognitive and normative institutions in influencing the relationship between ambidexterity internationalization strategies and enterprise innovation performance.#br#In order to investigate the impact of the balanced and joint dimensions of internationalization ambidexterity on enterprise innovation performance and analyze the roles of the cognitive and normative institutions in the host country, this paper collects data from 627 Chinese multinational enterprises by a questionnaire based on ambidexterity theory and institutional theory, anddefining variables and using the process plug-ins to test the hypothesis.#br#The results of the analysis show that the joint and balanced dimensions of ambidexterity internationalization have significant positive impacts on the innovation performance of firms, and the host country cognitive and regulatory institutions have positive moderating effects on the positive relationship between ambidexterity internationalization and innovation performance, and the higher the level of the host country cognitive and normative institutions, the greater the positive impacts of the ambidexterity balanced and joint dimensions on enterprise innovation performance. When the sample is regressed by industry, the results of the analysis show that the moderating effect of the cognitive and regulatory institutions is more pronounced in the manufacturing sector.#br#In contrast to previous literature, this paper compares the effects of the balanced and joint dimensions of ambidexterity strategies on innovation performance,and proves that the joint dimension in which exploration and exploitation are complementary and mutually reinforcing activities, has a better effect on innovation performance than the balanced dimension in which exploration and exploitation strategies are sought on an equal footing. To some extent, it broadens the scope of research on dual strategies for internationalization. In addition, this paper also compares the magnitude of the impact of cognitive and normative institutions on the path, and finds that the adoption of an internationalization ambidexterity strategy contributes more to innovation performance with the addition of normative institution than thatwith the addition of cognitive institution, expanding the scope of cognitive and normative institutions on the relationship between internationalization and innovation performance. This extends the research on how cognitive and normative institutions influence the relationship between internationalization and innovation performance. The study further analyses the extent to which cognitive and normative institutions in manufacturing and non-manufacturing industries have an impact on the relationship between internationalization ambidexterity and innovation performance, and finds that cognitive and normative institutions have greater moderating effects in manufacturing industries than in non-manufacturing industries, presenting new research directions for internationalization ambidexterity theory and institutional theory in different industries.#br#
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Received: 30 December 2022
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