To read this content please select one of the options below:

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

Eduardo Jorge Branco Vieira Barcelos (Department of Administration, Escola Superior de Propaganda e Marketing, São Paulo, Brazil)
Felipe Mendes Borini (Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo, São Paulo, Brazil)
Marcos Amatucci (Department of Administration, Escola Superior de Propaganda e Marketing, São Paulo, Brazil)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 10 June 2022

Issue publication date: 25 January 2023

43

Abstract

Purpose

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/approach

An 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.

Findings

Subsidiaries 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 implications

The 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/value

The 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.

Keywords

Acknowledgements

The authors are grateful to the constructive and insightful suggestions they received from the Guest Editors and the two anonymous reviewers at RIBS. The research was supported by the authors.

Citation

Barcelos, E.J.B.V., Borini, F.M. and Amatucci, M. (2023), "The role of a local network in achieving contextual ambidexterity in foreign subsidiaries operating in Brazil – a multi-level analysis", Review of International Business and Strategy, Vol. 33 No. 1, pp. 18-34. https://doi.org/10.1108/RIBS-03-2021-0045

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

Related articles