Pursuing ambidextrous foreign direct investment (FDI) has been suggested as a desirable strategic choice of emerging economy (EE) firms in their internationalization. Yet, reconciling explorative and exploitative activities overseas is complicated due to their conflicting and tensional nature. This study explores why some EE firms can achieve high levels of ambidextrous FDI while others cannot. Drawing on upper echelons theory, we propose a micro-foundation perspective of ambidextrous FDI by studying top management teams’ (TMTs) attributes. Applying a configurational approach to a sample of 294 EE firms’ FDI observations (of which 43 are ambidextrous FDI in nature) from 2011 to 2015, we not only confirm the equal importance of both TMT incentive and cognitive factors as causal conditions to achieve a high degree of ambidextrous FDI, but also provide original evidence on the interactive configurations of those factors that lead to ambidextrous FDI.

This study adopts a configurational perspective to examine how business model designs and contextual factors in transforming economies combine to create value. We investigate configurations of efficiency-centered and novelty-centered business model designs, corporate ownership, development stage, and external regulatory volatility associated with high growth in a transforming economy. Using a fuzzy-set qualitative comparative analysis of Chinese firms, we find five solutions associated with superior growth, suggesting that the effective configurations of business model designs vary in different contexts. Our study offers a holistic understanding of the relationship between business model designs and firm growth, and yields useful insights for business model designs for practitioners.