Executives’ Assessments of Evolutionary and Leapfrog Modes: An Ambidexterity Explanation Logic

Yu Xie, Yi-Fei Du, Francis Boadu and Xuan-Ya Shi
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Yu Xie: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China
Yi-Fei Du: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China
Francis Boadu: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China
Xuan-Ya Shi: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China

Sustainability, 2018, vol. 10, issue 8, 1-16

Abstract: Under the background of resource dependence, it is of great significance to study the emerging market multinationals’ (EMNEs) entry mode into international market. How do complementary assets and expansion opportunities in a host country market influence the EMNEs executive’s entry mode choice? We adopt policy capture method to designed questionnaire and administered to high-level EMNEs executives in China. The results show that the availability of complementary assets in the host country market have a positive influence on EMNEs executives’ evolutionary and leapfrog entry modes choice, and EMNEs executives’ preferences for leapfrog mode over evolutionary mode is positively related to the host country’s complementary assets. The expansion opportunities in the host country market have a positive influence on EMNEs executives’ evolutionary and leapfrog entry modes choice. This shows that expansion opportunities in the host country market have a similar degree of attraction for executives’ evolutionary and leapfrog modes. Unlike most current studies, which advocate that leapfrog is mainly used to obtain international assets, while evolutionary approach is more suitable for seeking international opportunities. This paper shows that the opportunity factors play the same important role as assets factors in promoting EMNEs executives’ springboard behavior. It also reveals the ambidexterity logic in EMNEs executives’ decision-making process.

Keywords: evolutionary mode; leapfrog mode; EMNEs; international assets; international opportunities (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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