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Ambidextrous Knowledge Sharing within R&D Teams and Multinational Enterprise Performance: The Moderating Effects of Cultural Distance in Uncertainty Avoidance

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Abstract

Current debates on organizational learning distinguish between two distinct and mutually exclusive learning modes: exploration and exploitation. This paper deals with the concept of ambidextrous routines in knowledge management (KM) initiatives. Specifically, drawing on a sample of 1468 MNEs from 24 regions in China, we find that a synergetic combination of explorative and exploitative virtual knowledge is positively associated with MNE performance. In contrast, an imbalance between explorative and exploitative virtual knowledge hurts MNE performance. Furthermore, the effect of imbalanced ambidexterity in virtual knowledge sharing is moderated by the cultural distance in the uncertainty avoidance between the R&D team and the region where the team operates. This paper elaborates on the characteristics of ambidextrous KM initiatives at the micro-level; firms use ambidextrous KM practices to create a learning context, defined by guidelines and methods rather than by a definite purpose. The clear separation of KM initiatives’ purpose and their embedded learning routines and methods enables them to be used ambidextrously. Furthermore, this analysis indicates that ambidextrous KM initiatives follow a path characterized by an increasing variety of purposes but a decreasing variety of underlying structures. Consequently, firms create a learning context that can be activated when necessary in ways required in an exploratory and/or in an exploitative mode.

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Notes

  1. https://www.inc.com/adam-robinson/google-employees-dedicate-20-percent-of-their-time-to-side-projects-heres-how-it-works.html.

  2. https://www.fastcompany.com/1663137/how-3m-gave-everyone-days-off-and-created-an-innovation-dynamo.

  3. The Thousand Talents Plan/Program was established in 2008 by the central government of China to recognize and recruit leading international experts in scientific research, innovation, and entrepreneurship (Jia 2018).

  4. Scholars (e.g., Qian et al. 2017; Yan and Chang 2018) have used these data sources frequently in previous studies on Chinese firms.

  5. When we conducted the surveys for this study, we also included brief but clear explanations for the respondents. For example, we explained that our meaning of virtual knowledge sharing is the context of digitalization and recent advances in communication technologies, such as smartphones, tablet personal computers (PCs), laptop computers, etc., and social media, such as messengers, social networking services (SNS), etc. Meanwhile, our meaning of traditional knowledge sharing is focused on co-located face-to-face knowledge sharing and paper documents, but not including other types of traditional but non-co-located knowledge sharing methods, such as a fax machine and postage.

  6. Following Huang and Cummings (2011), we measured team-level cultural distance (i.e., cultural distance among team members in a single team) using Hofstede’s country-level four cultural dimensions (i.e., power distance, individualism, masculinity, and uncertainty avoidance).

  7. We thank an anonymous reviewer for his/her insightful comment.

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Funding

This work was supported by Hankuk University of Foreign Studies Research Fund (0f 2020).

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Authors and Affiliations

  1. National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing, China

    Jeoung Yul Lee

  2. School of Business Management, Hongik University, Sejong, South Korea

    Jeoung Yul Lee

  3. Bryan School of Business and Economics, University of North Carolina at Greensboro, Greensboro, NC, USA

    Vasyl Taras

  4. Department of Management, Kedge Business School, Talence, France

    Alfredo Jiménez

  5. College of Business, Hankuk University of Foreign Studies, Seoul, South Korea

    Byungchul Choi

  6. Discipline of International Business, University of Sydney Business School, Sydney, Australia

    Chinmay Pattnaik

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  1. Jeoung Yul Lee
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  2. Vasyl Taras
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Lee, J.Y., Taras, V., Jiménez, A. et al. Ambidextrous Knowledge Sharing within R&D Teams and Multinational Enterprise Performance: The Moderating Effects of Cultural Distance in Uncertainty Avoidance. Manag Int Rev 60, 387–425 (2020). https://doi.org/10.1007/s11575-020-00416-9

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