Ambidexterity in a Rapidly Changing Environment of China: Top Management Team Decision Making and Sustained Performance

Abstract

The market requires Internet companies to achieve unit ambidexterity to adapt to a rapidly changing market environment. Studies have discussed the background, behavior, and performance of corporate ambidexterity but have not focused on formulating ambidextrous decisions by the top management team. We implemented inductive multiple case studies by utilizing five Chinese Internet companies as subjects. Results show that if the senior managers consider the contingency between business and environment from the perspective of the entire industry to achieve goals, resource allocation, and co-evolution, and effectively coordinate the internal conflict of the decision-making process, then the company could attain sustained performance. The newly constructed theoretical framework emphasizes the role of contingency and strategy behavior, rather than deterministically interpreting the outcome based on the personal judgment of senior managers and the embeddedness of units.