An investigation of ambidextrous mechanisms and processes at the subsidiary level in emerging market multinational corporations: a case study of Viettel Global

Abstract

In the challenging global business environment, emerging market multinational corporations (EM MNCs) must handle their exploration and exploitation tasks to survive and compete more effectively against rivals, both at home and abroad. Organisational ambidexterity (OA), the concept of managing such paradoxical tasks, is highly compatible with the cultural, economic, and institutional challenges those firms encounter. Prior research has demonstrated that the implementation of OA significantly enhances success in overseas market expansion, compensates for EM MNCs' late-mover disadvantage on the global stage, provides certain operational advantages, and embraces an organisational learning mentality and flexibility in strategic choices, etc. However, the available streams of OA research have mainly been focused on its performance outcome, antecedents and static ambidextrous structural designs while neglecting the dynamic management of OA and the complex process that combine those antecedents and mechanisms. This study attempted to address this research gap in the context of EM MNCs, using a single case study of such a firm from Vietnam, Viettel Global (VTG). Study aim: This research investigated the manifestations of OA and the antecedents that help construct a pathway to achieve it in the case of the studied EM MNC. Through such investigation, it aimed to contribute to the intersections of the ambidextrous process and mechanisms research in the context of EM MNCs at the subsidiary level. Method: To achieve the above-mentioned aim, this two-phased research employed a case study approach involving qualitative data collection mainly using semi-structured interviews. The first phase (pilot study) collected and analysed the data from the pilot interviews, with the respondents being the MNC's headquarters managers. The second phase (main study) investigated four subsidiaries of the EM MNC in Southeast Asia by interviewing the subsidiary managers. Over the course of three years, primary data from 21 confidential email interviews and secondary data gathered from magazines, newspapers, and the EM MNC's websites were collected, compiled, and analysed. The analysis was conducted using the thematic data analysis approach and Nvivo software. A combined strategy of deductive and inductive methods was utilised: the deductive method was applied to use the findings from data to test propositions related to existing theories, while the inductive method helped collect, explore, and analyse data to find patterns to construct frameworks. Findings: Based on the empirical evidence collected, this research proposed two theoretical frameworks to fulfil the research objectives. Framework 1 employed an intellectual capital lens to systematically aggregate and organise ambidextrous mechanisms into a model by offering an empirical example of their use in a typical EM MNC. It made up for the absence of integrated studies (since ambidextrous mechanisms have often been studied individually) and offered an easy-to-follow approach that would assist researchers and practitioners in understanding and applying ambidextrous strategies more easily. The second framework strengthened and enriched the three-stage process model (including the initial stage, contextualisation stage, and implementation stage) of achieving OA by integrating the dimension of ambidextrous mechanisms into each step. Framework 2 provided a comprehensive and methodical tool that might be useful for EM MNCs in supporting OA at their subsidiaries in practice. It can also be taken as a premise for managers to consider investing in the intellectual capital (IC) that their organisation lacks to initiate, contextualise, and implement OA in the way they wish to.