Journal
INTERNATIONAL BUSINESS REVIEW
Volume 26, Issue 1, Pages 57-70Publisher
ELSEVIER
DOI: 10.1016/j.ibusrev.2016.05.006
Keywords
Ambidexterity; Dynamic capabilities; Globalization; Uppsala model; IKEA; AB Volvo
Categories
Funding
- Handelsbanken's research foundations
- HUR
- SSAAPS
- SI
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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. (C) 2016 Elsevier Ltd. All rights reserved.
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