Decoding internationalization: examining digital ambidexterity and competitive strategy configuration via fsQCA

Abstract

This study examines in detail the specific ways employed by Business-to-Business (B2B) firms to navigate the complexities of internationalization. To date, research has primarily focused on fragmented aspects. Drawing on a sample of 341 B2B firms and through an in-depth examination employing the fuzzy-set Qualitative Comparative Analysis (fsQCA) methodology, this research illuminates the nuanced interplay between certain configurations of digital ambidexterity (exploitation or exploration) and competitive strategy (cost, differentiation, and focus), and their effect on firm internationalization business performance, moderated by the digitalization levels (limited, moderate, and high). The findings reveal multiple equifinal configurations that contribute to internationalization performance. Across different levels of digitalization, varying combinations of digital ambidexterity and competitive strategy are found to positively influence business performance, each characterized by a unique configuration of core and peripheral conditions. This study contributes to international business theory and practice, particularly benefiting companies facing resource constraints and seeking clarity on how to prioritize their limited resources. By identifying the specific configurations of digital ambidexterity and competitive strategy that lead to successful internationalization, the research provides a roadmap for B2B firms to navigate the digital landscape and achieve global success.