Realizing Product-Market Advantage in High-Technology International New Ventures: The Mediating Role of Ambidextrous Innovation

Abstract

This study examines the pivotal role of ambidextrous innovation in the strategy-performance thesis of the export ventures of high-technology international new venture (INV) firms. To date, the literature on INVs has failed to consider ambidextrous innovation in the strategy interplay in approaching new markets overseas. Building on the resource-based view of the firm, the authors empirically examine the relationships among competitive strategy, innovation ambidexterity, positional advantage, and export venture performance. In the context of Mexican high-technology INVs, the authors find that innovation ambidexterity codetermines both marketing differentiation and cost leadership advantages, and together these link to export venture performance gains. The authors reveal that marketing differentiation and cost leadership strategies positively influence differentiation and cost advantages, respectively. They observe hybrid strategy to influence marketing differentiation advantage inversely. Moreover, marketing differentiation strategy alone is important in driving innovation ambidexterity. The study findings have important implications for research on international marketing, new venture decision making, and overseas expansion strategies.