Market–political ambidexterity during institutional transitions

Abstract

In emerging economies undergoing institutional transitions, while market forces have grown, government influences are not necessarily in decline. Therefore, in addition to market capabilities, firms also need to develop political and nonmarket capabilities. We argue that firms grow during institutional transitions by developing a set of capabilities that we label market-political ambidexterity to embrace both governments and markets. Viewing market-political ambidexterity as a bundle of dynamic capabilities, we contribute to the literature by articulating this important but previously underexplored construct. [Key words] Ambidexterity, market-political ambidexterity, institutional transitions, emerging economies