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Purpose Ambidexterity’s effects on exploration and exploitation have been widely studied in the innovation literature. However, to date, no studies have determined how combining or balancing the two strategic marketing foci may improve new product performance outcomes. This is an important issue in emerging markets, which have considerable potential to introduce new products, given the rising affordability and intense competition between Western and local firms. These challenges compel managers to offer new products and solutions in these markets. However, firms may adopt different strategic marketing foci for new product development. Using Pakistan as an emerging-market context, this paper aims to provide novel insights into how managers can choose the right balance of a customer-driving versus customer-driven strategy to optimise new-product performance. Design/methodology/approach A multi-industry approach surveyed senior strategy managers (N = 106) of Pakistani businesses. Findings Using polynomial regression and surface test analyses, the findings showed that balancing the two strategies influenced new-product performance more than either strategy alone. Surprisingly, the imbalance of greater customer-driving over customer-driven strategy or vice versa did not improve new-product performance. Moreover, new-product performance was greater when the level of balance was higher compared to when it was lower. Originality/value Grounded in behavioural and strategic adaptation theory, this study extends ambidexterity’s theoretical foundations in marketing by empirically determining the optimal balance of an orientation and performance implication model. The findings can assist emerging market managers in choosing the right balance and combination of the two strategies for better performance of new products.

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PurposeThis paper presents a theorization and an empirical analysis of the influences of international open innovation (IOI) on the international market success of emerging market small and medium-sized enterprises (ESMEs). An analysis of the moderating roles played by cross-cultural competencies and digital alliance capabilities in this specific context is also presented.Design/methodology/approachThe study adopted a quantitative research design involving a survey of 231 ESMEs based in the UAE. The authors formulated some hypotheses and tested them by employing hierarchical regression models.FindingsThe findings revealed that IOI positively affects the international market success of ESMEs. The authors further found that both cross-cultural competencies and digital alliance capabilities moderate the relationship between IOI and international market success.Originality/valueThe study advances the international marketing, knowledge and innovation management literature in two ways. First, it is a pioneering study that advances both the theoretical and empirical scholarship regarding the relationship between IOI and emerging market firm international market success by employing an extended resource-based view. Second, it further highlights the role played by cross-cultural competencies and digital alliance capabilities as effective governance mechanisms that moderate the relationship between IOI and international market success.

Purpose The common market practice by global consumer brands to create localised packaging for foreign markets conflicts with findings that cast doubt on this strategy. By examining the differential influence of standard (Western) and local (Chinese) packaging on Chinese consumers’ perceptions and choice behaviour, this study aims to examine whether this strategy is effective or even necessary. Design/methodology/approach A pre-test first identified suitable products and brands. Using a multiple methods approach, online participants in China first rated the brands and packaging of hedonic and utilitarian products. The ratings were then validated by triangulating with the results of a discrete choice experiment that captured participants’ choice behaviour. Findings For hedonic products, standard packaging is rated more positively and chosen more often than local packaging. For utilitarian products, there are no differences in ratings and choice. For hedonic products, brand likeability is higher for standard packaging than for local packaging. For utilitarian products, brand likeability does not differ between the two packaging types. Research limitations/implications These findings cast doubt on the effectiveness of indiscriminate packaging localisation. International marketers need to rethink their approach, particularly in non-Western markets. Interviews with five brand managers in charge of major consumer brands in China revealed their actual market practice and further illuminate this study’s findings. Originality/value This is first study to question the common market practice of packaging localisation and investigate the differential effects of standard versus local packaging of foreign products on consumers’ perceptions and choice behaviour.