How Market-Guanxi Ambidexterity Affects Adaptive Capability in China’s Transition Economy
Whether market- and guanxi-based strategies are complementary or substitutable in shaping adaptive capability is a critical yet controversial issue. This paper tackles this problem by adopting the ambidexterity perspective. Specifically, using a sample of 185 Chinese private firms, this study examines the independent and interactive effects of market orientation (MO) and guanxi orientation (GO, i.e., emphasizing on building business and political ties) on adaptive capability of firms in transition economies. Our results suggest that both direct impacts and complementary impacts of MO and GO strongly exist in shaping firms’ adaptive capability, indicating the importance of “strategic ambidexterity.” These findings have several theoretical implications for studies on ambidexterity and adaptive capability, and practical implications for firm strategies in transition economies.
market-guanxi strategies / ambidexterity / adaptive capability / transition economy / market orientation (MO) / guanxi orientation (GO) / China
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