In the past 40 years since China's reform and opening-up, the internationalization of Chinese companies has been accelerating. This study attempts to explore the relationship between Chinese companies’ home-country network embeddedness, ambidextrous organization competence, and internationalization performance.
This study adopted a mixed methods strategy by combining both qualitative and quantitative approaches. First, four companies were investigated as exploratory cases by means of interviews. Second, based on the literature review and insights from the case studies, a set of hypotheses were deducted. A questionnaire survey with 382 valid returns provided quantitative data to verify the hypotheses.
Based on statistical analysis, it was found (a) home-country network embeddedness has a positive influence on company internationalization performance and ambidextrous organization competence; (b) ambidextrous organizational competence has a positive influence on the performance of company internationalization; (c) ambidextrous organization competence plays a mediating role between home-country network embeddedness and performance of company internationalization; and (d) environmental dynamics play a partially positive moderating role in the relationship between home-country network embeddedness, ambidextrous organization competence, and company internationalization performance.
Due to limited resources and the significant differences in international laws and regulations, the research was limited to Chinese oilfield technical service companies. Future study could be extended to a variety of different industries to enrich and perfect the theoretical models constructed by this research.
Originality and theoretical contributions
This study expands the research boundary of company network theories. It further identifies the intermediate mechanism of home-country network embeddedness and its influence on company internationalization performance, and it enriches the research of international direct investment theories.
This study could provide a theoretical reference and practical guidance for companies in China and other developing countries when they encounter problems in their international operations and competition.
Keywords: home-country network embeddedness; ambidextrous organization competence; company internationalization performance; environmental dynamics; Chinese oilfield technical service companies