Ambidexterity as a dynamic capability in the globalization of the multinational business enterprise (MBE): Case studies of AB Volvo and IKEA |
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Authors: | Jan-Erik Vahlne Anna Jonsson |
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Institution: | 1. Centre for International Business, School of Business, Economics & Law, Gothenburg University, P.O. Box 650, SE-405 30 Gothenburg, Sweden;2. Department of Business Administration, School of Economics and Management, Lund University, P.O. Box 7080, SE-220 07 Lund, Sweden |
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Abstract: | Most current research argues that globalization of companies is a myth. In spite of this Swedish firms have managed to globalize successfully according to a study by Vahlne and Ivarsson (2014). On a general level this is because they managed to build strong advantages and learned to overcome barriers constituted by cultural, institutional and geographic distance. We elaborate on the expectation that organizational ambidexterity has explanatory power for profitable globalization. We perform case studies of IKEA and AB Volvo to motivate our expectation and illustrate how these firms have been able, or not able, to balance and manage the simultaneous processes of exploration and exploitation. Ambidexterity is included in the package of dynamic capabilities affecting the globalization process positively. We find that being proactive in exploration and improving on the effectiveness in exploitation may lead to successful globalization performance. |
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Keywords: | Ambidexterity Dynamic capabilities Globalization Uppsala model IKEA AB Volvo |
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