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

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.

Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation

“…Put differently, it is recognised that with a well-regulated collaborative social network relationship, firms are able to acquire relevant market information, valuable resources and business support advice about the foreign market which they leverage to identify market opportunities, expand to new markets and increase their degree of international operations (Alcaraz and Salamanca, 2022; Kryeziu et al , 2021; Santhosh, 2020). Thus, a highly built network relationship aids exporting entrepreneurs in gaining access to differentiated knowledge and distinctive resources which significantly increase market opportunities and competitive advantage and positively accelerate the pace, scope and degree of internationalisation (Barcelos et al , 2022; Santhosh, 2020). In the same vein, formal networking with an international agent and membership association is a source of information to enhance the international experience and competitiveness, to boost international activities (Boscor, 2015; Morais and Franco, 2018).…”