Organisational Ambidexterity in Emerging Markets

Emerging markets are complex environments for retailers wanting to expand their brand into new markets. South Africa has recently seen an upsurge in the middle-class market who have further increased income disparity in the country. The country’s poor residing in the townships have attracted significant attention from major retailers as a potential market growth opportunity. Serving this market presents a horde of challenges for South African retailers that have long eyed the market. This study seeks to gain a deeper understanding of how retail companies deal with these challenges through exploration and exploitation under the umbrella of ambidexterity. This research also looks at how ambidextrous firms manage their business model together with partners or separately. A case research approach was used to investigate the experiences of a South African retail firm in the FMCG sector and how they implemented and managed their business strategy to counter emerging market challenges. Five in-depth interviews were conducted and extensive secondary data was collected and analysed to build on constructs identified in existing literature.