International Business Context Research Articles

Culture and international innovation: a theoretical approach

PurposeThe rapidly changing international business landscape, driven by dynamic factors such as technology, emerging markets, and unpredictable crises, demands that organizations innovate to survive while gaining and sustaining competitive advantages. Culture, an intricate multilevel construct, presents challenges for transnational enterprises and international business as a key “soft” element of organizational strategy.Design/methodology/approachThis paper employs a triangulated method combining a systematic literature search, machine learning, and qualitative thematic content analysis to explore the relationship between culture and innovation within the context of international business. The analysis involved scrutinizing 697 journal articles indexed in the Web of Science database.FindingsUsing k-means, which is an unsupervised machine-learning tool in Python, and hypertext preprocessor language scripting, we identified seven topic clusters and 94 keywords. Qualitative thematic content analysis facilitated the recognition of prevailing patterns in researchers' conceptualizations of the interplay between innovation and culture. We identified influential relationships between cultural configurations and innovation.Research limitations/implicationsOur analysis contributes to developing a comprehensive research field map encompassing international business, innovation, and culture.Originality/valueThis study significantly enhances our knowledge of culture and international innovation. Future research that recognizes culture as a dynamic configuration at multiple levels (e.g. national, organizational, professional, and individual) and employs more comprehensive measures of innovation and culture could substantially advance our understanding of the intersection of culture and innovation in international business.

Multinational enterprises' lobbying and foreign subsidiary performance: Evidence from the U.S. in the context of the global financial crisis

AbstractWhether corporate political activity (CPA) benefits firm performance is contested in the literature. However, the CPA‐performance relationship has been less explored in the international business context or in the context of macroeconomic shocks—notably the global financial crisis—during which multinational enterprises (MNEs) may be forced to revisit their market and non‐market strategies. In this study, we draw upon insights from the institutional theory and legitimacy perspectives to argue that the performance consequences of MNEs' lobbying in a host market are contingent upon the MNE's experience of operating in the host market, their lobbying frequency, and the subsidiary's technological intensity. The empirical analysis used to test our hypotheses is based on a panel dataset of 224 subsidiaries of foreign MNEs operating in the United States, spanning the 8‐year period 2005–2013, covering the years of the financial crisis. We find support for most of our hypotheses and contribute to the performance implications of CPA in international business contexts.

Host-country climate risk and the expansion of emerging market firms: a strategic tripod application

ABSTRACT Climate risk is a pressing global concern that affects multinational enterprises in manifold ways. Yet this has received less attention in international management literature. To address the gap, this study examines the impact of climate risk on the expansion and performance of emerging multinational enterprises (EMNEs) and tests the moderating effects of industry and institutional factors on the relationships. Using a dataset comprising the international acquisitions initiated by MNEs from emerging markets in 1998–2018, we find that host-country climate risk negatively affects the firms’ expansionary entries and is detrimental to firm performance. In addition, we find that firms from high-polluting industries are likely to show greater environmental awareness and increase their commitment to climate-risk countries. At the country level, our results show that home-host country political ties reduce the negative impact of climate risk on firms’ expansion and performance. The findings contribute to the literature on environmental management in an international business context and offer important practical implications for managers and government agencies.

Artificial intelligence for international business: Its use, challenges, and suggestions for future research and practice

AbstractThe emergence of artificial intelligence (AI) has transformed global business, aiding operational efficiency and innovation. It utilizes machine learning and big data analytics, driving predictive market trends and strategic decision‐making. However, despite the rising discussion and accessibility of AI tools, understanding its impact on international business remains limited. This article explores AI's potential in international business strategies, practices, and activities. To address this aim, we reviewed 37 articles in the existing literature to critically explore AI within the context of international business. More specifically, we explored how AI can be applied to innovation approaches in international business, international market selection, entry modes, foreign exchange, international human resource management, international supply chains, managing across cultures, and more topics. AI has necessitated changes in workplace configurations and the need for organizational and employee adjustments in response to this technology. As a result of the foregoing issues on AI integration within international business, our analysis provided an exploratory discussion around its use, challenges, managerial implications, and suggested areas requiring future studies.

Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China

Organizational paradox has received substantial scholarly attention; however, the literature has not yet explored the idea that it can be ingrained and manifested as an international organizational culture. In this study, we conceptually explore and empirically examine paradoxical organizational culture and its impact on international firm performance. In this vein, this study advances our knowledge of international organizational culture by extending paradox theory. We propose a “paradoxical organizational culture” as a type of international organizational culture characterized by the sustained and visible coexistence of contradictory cultural features within an international organization. We also argue that the effectiveness of paradoxical organizational culture is amplified, not dampened, by authoritarian leadership. Quantitative analyses based on cluster groups were used to examine the relationships among paradoxical culture, leadership, and firm performance. The empirical results, based on original survey data collected from China (2256 individual respondents from 394 Chinese international firms), support our claims. Our study is expected to provide implications for those interested in the concepts of paradoxical organizational culture and authoritarian leadership in the international business context.

Vox populi, vox dei: A concept and measure for grassroots socio-political risk using Google Trends

In this paper, we propose a concept of grassroots socio-political risk (SPR) and provide a measure for it that is based on individual-level Google Trends data that captures issue salience. Our concept provides a bottom-up complement to established measures that focus more on political and institutional players and the institutional constraints they face. Our grassroots SPR index attempts to capture public pressure to initiate institutional change in a country. In contrast to existing measures, our Google Trends–based measure captures issue salience directly among individuals rather than media or analyst reports. As such, it is uniquely representative of socio-political sentiment, timely, and widely available. Our concept and measure offer international business (IB) researchers novel opportunities. In addition to developing the index, we scrutinize its validity and provide an illustrative empirical application in the IB context by showing that differences between internal and external assessments of grassroots SPR are contingent on psychic distance.

Exogenous shocks and MNEs: Learning from pandemics, conflicts, and other major disruptions

Exogenous shocks have long been a feature of the global economy, yet they have become particularly salient in recent years. This Special Issue of the Journal of World Business addresses the shift to a New Normal characterized by frequent events that disrupt the international business context, such as the COVID-19 pandemic and the Russia-Ukraine conflict. In this Introduction to the Special Issue, we discuss how the IB literature has treated exogenous shocks. We posit that important lessons can be learned from history, and from the experience of MNEs in the countries of the Global South. We also suggest future research avenues centered around exogenous shocks, international business, and multinational enterprises.

Cyber security laws and safety in e-commerce in India

In today’s information technology age, the issue of cyber Security is a complicated and fascinating area of law. The phenomenal growth and development of e-commerce in India is astounding. However, with the rising dependence on internet commerce, the dangers of fraud and security and trust problems have become severe impediments. Creating robust legal and regulatory frameworks that meet the growing concerns about online fraud, data security, and intellectual property protection in both local and international business contexts is critical. The e-commerce sector, like any expanding business, confronts various obstacles, primarily due to an inadequate and inefficient legal and regulatory framework that fails to guarantee the rights and duties of all players engaged sufficiently. To protect user data, tackle cyber threats, and maintain customer trust, e-commerce enterprises must comply with legal regulations. In India, cybersecurity governance falls under the Information Technology Act of 2000, regulating e-commerce, electronic contracts, data protection, and cybercrimes. The imminent passage of the Personal Data Protection Bill, 2019, is expected after ongoing review. The Indian Penal Code addresses unauthorized access, hacking, identity theft, phishing, and computer virus dissemination. The Reserve Bank of India oversees online payment and financial security, mandating two-factor authentication, encryption, and secure payment channels. CERT-In coordinates national cybersecurity incidents, while electronic signatures and digital certificates hold legal recognition. Intellectual Property Laws regulate online violations of patents, copyrights, and trademarks. The Indian government also enforces cybersecurity standards for enterprises and organizations, covering IT infrastructure and incident response. Nonetheless, further steps must be taken to improve the efficiency of India’s cyber security regulations. This research study uses a doctrinal and analytical approach to examine India’s present Cyber Security Laws and Guidelines. It assesses their effectiveness in addressing legal concerns with Security, privacy, and data protection inside the country. It also evaluates the legal structure that governs the link between e-commerce and Cyber Laws in India. This research will provide a thorough overview of the present condition of cyber security regulations in India, setting the way for prospective reforms and progress in this critical area.

The emergence of populism as an institution and its recursive mechanisms: A socio-cognitive theory perspective

AbstractThe rise of populism worldwide provides an excellent setting to explore the dynamic relationships among international business (IB), institutional context, and IB policymaking. It also has important implications for multinational enterprises (MNEs). To understand populism’s recursiveness, such relationships need to be examined more broadly from a social psychology lens; also, within IB and IB policy research. While populism has been attracting widespread attention among many different IB stakeholders, our understanding of populism at the nexus of politics, the economy and social psychology remains undertheorized and, sometimes, misunderstood. We employ socio-cognitive theory (SCT) to answer how populism arises (RQ1) and establishes itself as an institution (RQ2). By shedding light on the origin and mechanics of populism’s recursive nature, the logic of “proto-institutions”, which we employ to understand institutional change in the context of populism, helps advance institutional theory within an IB context. Exploring the implications of populism for MNEs helps advance theory on MNE non-market strategies (NMSs) and shed light on MNEs’ corporate political activities. The re-framing of populism as a wicked problem further provides a theoretical toolkit for IB policy research. We present several future research directions for IB and IB policy research, as well as MNE research.

Sustaining firm sustainability endeavors: The role of international diversification on firm CSR capability

CSR's role in the international business context has been widely noted. Yet, how firms' cross-border strategies influence firm CSR capability is largely absent in the literature. Our study examines how firm international diversification, as reflected by breadth and depth, affects CSR capability. These relationships are further built into a contingency-based model incorporating the market dynamism and competition intensity. We collect a large dataset with 6069 firm-year observations range from year 2000–2015, and we employ multiple robust methods including Newey-West robust regression and Driscoll-Kraay robust regression to estimate the model. The results demonstrate the significant driving role of international diversification on CSR capability, although diminishing return effects exist in the contingencies. Also, this relationship becomes stronger in more dynamic and more competitive environments. Our research provides unique contributions to the stakeholder theories, strategic CSR theories, dynamic capability view, and international business literature.

Factors Affecting Cooperation in the International Supply Chain of Seafood Enterprises: the Case of Vietnamese

Purpose: The purpose of this research is to analyze and evaluate factors affecting cooperation in the international supply chain of Vietnamese seafood enterprises. Theoretical framework: Operations in international business context are associated with high risks, so cooperation in supply chain helps to improve management flexibility. On the other hand, acccording to the theory of resource dependency, resource sharing and information sharing strategies can affect the quality and the level of cooperation among supply chain partners. Design/methodology/approach: To achieve the aim of this study, a literature survey related to supply chain and supply chain cooperation is carried out, and empirical analysis is conducted among 327 partners in seafood industry with the results analyzed using Cronbach’s Alpha analysis, exploratory factor analysis (EFA), and linear regression analysis (RA). Findings: Research results have confirmed that there are six main factors directly affecting the international supply chain cooperation of Vietnamese seafood enterprises including: (1) Trust; (2) Power; (3) Distance; (4) Government policy; (5) Cooperation strategies and (6) Information sharing. Research/Practical & Social implication: The encouraging policies and simplified export regulations are to be implemented by the government, VASEP and enterprises so the knowledge about international supply chain cooperation will be promoted with the help of comprehensive future research directions. Originality/value: This is literally one of the first research works in Vietnam to incorporate the information sharing component into the model of affecting factors for international supply chain cooperation. Regardless of business uncertainties, the study shed new light on supply chain cooperation and promote firms to gain an edge in the global marketplace.

Knowledge and capabilities: what are their roles in international business of SMEs?

PurposeEngaging in international business (IB) is a particular challenge to small and medium-sized companies (SMEs), representing a condition to ensure growth and longevity. Due to their limitations of tangible resources, these companies make use of their levels of knowledge and capabilities to reach new markets. This study seeks to ascertain the role, the typologies of the knowledge and capabilities required for access to IB, and how benefits may arise for SMEs from their international experience.Design/methodology/approachTo achieve these objectives, the authors ground the insights on a qualitative study that gathered data from ten semi-structured interviews with leading entrepreneurs engaged in IB. The data were analysed resorting to the QSR Nvivo software.FindingsThe results demonstrate how (1) knowledge and the development of dynamic capabilities all represent determinant facets to engaging in IB and that (2) the knowledge and learning capabilities acquired and developed in IB context also result in positive returns in domestic markets.Originality/valueDespite the rising of IB studies, the interaction between knowledge and capabilities from the perspective of accessing international markets has not received attention enough from scholars. The authors argue that both constructs must act together to reach and maximize the IB of SMEs and provide evidence that engagement abroad brings several other advantages beyond economic returns.

Reconceptualising English for International Business Contexts: A BELF approach and its educational implications (a review)

Reconceptualising English for International Business Contexts: A BELF approach and its educational implications (a review)

Orientation and action: SME responses to customers and competitors in an international competitive business context

This paper investigates strategic orientations toward three key parties (customers, domestic competitors, and foreign competitors) and considers how each pressures small- and medium-sized enterprises (SMEs) to reduce costs and innovate. We surveyed 2792 SMEs from 30 countries, about their business environment and firm innovation. Results indicate that SMEs are selective in responding to pressures from customers, and when they do respond, SMEs do so on their own terms. Further, SMEs differentiate their responses to competitive pressure based on whether pressure arises from foreign or domestic sources. Our study adds to the behavioral perspective of the market orientation literature by focusing on how customers and competitors drive SME behaviors aimed at achieving positional market advantages.

CODEVI: translating cross-border challenges into value creation?

Learning outcomes This case study was intended for MBA/postgraduate level courses, or for high-level executive courses. It provided a complex international business context to analyse the intricacies and dependencies between emerging regions, wherein a company (Grupo M) established an entire manufacturing cluster and invested all its assets in a place that has never hosted any industrial activity – in a country whose culture and traditions differed significantly from those of the neighbouring country that provided the investment. The case included a discussion of the negotiations that a private company undertook with two governments (Haiti and the Dominican Republic) to secure access to the free-zone facilities granted by the importing countries. The case could be seen as a stimulating international business context to examine central tenets around “shared value creation” (Porter and Kramer, 2011): the practice of creating economic value in a way that also creates value for society by addressing its needs and challenges. As per these authors, there are three ways to create shared value: by reconceiving products and markets, by redefining productivity in the value chain and by enabling local cluster development. The latter is the one best exemplified in this case. Additionally, the case brought intriguing insights on international business that can be related to ethics, corporate social responsibility and its many facets (Banerjee, 2007), as well as concepts around “responsible lobbying” (Anastasiadis et al., 2018). Case overview/synopsis This case presented the expansion challenges of CODEVI, a Dominican company, which established and operated an industrial (free zone) park in Haiti. Grupo M decided to move its operations when The World Trade Organization eliminated the quota system for apparel imported from the Far East Countries, and its CEO, Fernando Capellán, foresaw that the Dominican Republic would soon become non-competitive. At the time, an agreement between the US and Haiti, which gave preferential access to production from this extremely poor country, was being negotiated. In 2003, there were two sleepy towns at the Haitian-Dominican border: Dajabón, with about 18,000 inhabitants in the Dominican side, and Ounaminthe in Haiti, with about 40,000 inhabitants (with 90 per cent unemployment and over 80 per cent living below the extreme poverty line) on the Haitan side. These two locations were at the heart of a case that narrated how a complex international business operation resulted in an industrial park that has enjoyed considerable economic success, while simultaneously improving dramatically the living conditions of both border towns: Dajabón now has about 35,000 inhabitants and was a booming town, with a prosperous middle class; Ounaminthe now had 170,000 inhabitants (17,000 work directly at CODEVI), and was a city that essentially remained outside the chaos that often plagues the rest of Haiti. Additionally, a major impact of CODEVI was that it stopped the area’s illegal emigration of Haitians to the Dominican Republic, one of the Dominican Republic’s most pressing problems. But as the CODEVI industrial park has no area to expand, a decision must be made to either expand next to the present park, or at one of the three sister towns along the border. Such a park would have to be built from nothing, as was the case for CODEVI almost two decades ago. Complexity academic level MBA, executive and postgraduate. Supplementary materials Teaching notes are available for educators only. Subject code CSS 5: International Business.

A Yin-Yang dialectical systems theory of knowledge creation

PurposeCross-cultural cognitive paradoxes have frequently broken the existing boundaries of knowledge and stimulated demands for knowledge creation (KC), and such paradoxes have triggered and will continue to trigger novel risks in the context of international business (IB). Given the nascency of relevant issues, this study aims to develop a more comprehensive understanding of KC across cultures by proposing a Yin-Yang dialectical systems theory of KC as micro-foundation to more systematically frame the risk/paradox-resolving mechanism elicited by cultural collisions.Design/methodology/approachThis paper is conceptual in nature. The authors first critically review the literature to lay a broad theoretical foundation. Integrating the philosophy- and praxis-based views, the authors reposition knowledge as a Yin-Yang dialectical system of knowing, with yin representing the tacit while yang represents the explicit. Next, the authors justify the underling logic of realising KC through a contradiction-resolving process. On this basis, the authors draw upon the Yijing’s Later Heaven Sequence (LHS) as the source domain of a heuristic metaphor to reconceptualise KC as a dynamic capability in the IB context.FindingsUsing the LHS paradigm to metaphorically map the intricate patterns of interaction and interconnectivity among the involved individuals, organisations and all related stakeholders, this research identifies and theorises the overall dynamic capability of KC in the IB context, which comprises five sets of processes: contradiction, conflict, communication, compromise and conversion.Practical implicationsThis research highlights that KC is simultaneously activated and constrained by human actions as well as by the socially constructed context in which it emerges, which helps individuals, organisations and policy makers more clearly frame the novel risks induced by cross-cultural cognitive conflicts in the IB context.Originality/valueThe authors synthesise Yin-Yang dialectics with the approach of collective phronesis, proposing a novel, praxis-oriented Yin-Yang dialectical systems theory of KC. It provides a deeper understanding of the epistemological paradox inherent in all knowledge, thus enabling KC to be rationalised by a sounder logical reasoning. By fusing the macro and micro perspectives on KC, the authors also enrich existing theory and future theory building in the domain of knowledge management.

Are Reshoring Decisions Influenced by External Stakeholders and Country‐Level Environmental Regulation?

AbstractThe rationale behind reshoring activities remains unclear. Multinationals reshore their subsidiaries when regulations in the host country become too costly or difficult to manage. However, it is unclear whether the positive association between the propensity for reshoring subsidiaries and the host country's regulations applies to all types of subsidiaries (i.e. majority or minority owned) and whether it is moderated by other factors. We suggest that external stakeholders play a crucial role in strengthening the relationship between the decision to reshore and the host country's regulations. Within the context of international business, we examine the reshoring decision of a panel of subsidiaries controlled by UK multinationals located in 39 countries and focus on a specific set of environmental and corporate governance regulations. Our findings suggest that reshoring amongst minority‐owned subsidiaries is more likely to happen in countries with weak protection of shareholders and mandatory environmental disclosure. Such a relationship is also strengthened by the presence of external stakeholders, namely, foreign directors sitting on subsidiaries’ boards. We contribute to the reshoring literature by showing the role of external stakeholders and the impact of institutions and regulatory requirements on reshoring decisions.

Social media and international business: views and conceptual framing

PurposeThe objective of this paper is to increase understanding of social media in international business context. To this end, the authors make an attempt to integrate the existing, still somewhat limited views in a framework that advances the knowledge of scholars and decision-makers on this topic.Design/methodology/approachThe authors conduct a conceptual study supported by use of a systematic literature review method.FindingsThis study shows marketing as a dominant area of discussion and reveals that many firm functions where social media plays a role have received relatively little attention. Furthermore, the study shows that the positive features of social media in international activity tend to be more widely acknowledged and better understood than the potentially problematic aspects.Research limitations/implicationsThe number of articles analyzed in this study was relatively small, resonating with the nature of an emerging research area. Research on social media has only taken off over the last years, and it is understandable that there is limited research that connects it specifically to phenomena of international business.Practical implicationsThis study reminds managers to be cautious when using social media in international markets. The relationship between social media and international business exhibits dynamism and is dependent on a variety of factors. Social media does not come without costs, nor is easily transferred from one market to another. Efficient use of this media in the international context may increase the need of specific and qualified human resources, and it may necessitate having the whole process from R&D to delivery, and beyond, ready for adaptation.Originality/valueIt can be argued that we know too little about the relevant factors and relationships between social media and international business. The authors hope that this study revealing the scarcely studied aspects and suggesting a tentative framework for capturing the dynamics of social media and international business can guide subsequent research and accelerate its emergence.

Scale-ups and scaling in an international business context

Scaling, the persistent rapid growth to deliver a viable business model, often incorporates an explicit international business dimension. However, research on the cross-border management and organization of scaling and scale-ups in international business has been limited. We therefore build on prior scholarly understanding to differentiate scaling in three settings – initiative, organization and ecosystem – and elaborate on their respective international business aspects. We are sensitive to different organizational purposes and their associated scaling for commercial and/or social impact. Our arguments advance the conceptual understanding of scaling in international business and offer an agenda for future research.

Resource dependence theory in international business: Progress and prospects

AbstractResearch SummaryResource dependence theory (RDT) has been widely applied in the context of international business (IB) over the past four decades. This study reviews and synthesizes the insights of RDT in IB literature accumulated over the past 40 years and derives an integrative addendum for future research. We highlight three critical dependence dimensions (i.e., locational, interorganizational, and intraorganizational dependencies) and three essential RDT themes (i.e., dependence solutions, dependence‐managing outcomes, and macro environmental conditions of RDT) in the IB context. Our review concludes that the IB literature has reached a good level of conceptual and empirical consensus concerning how multinational corporations (MNCs) take a large array of resource dependence actions and manage their resource dependence in various situations. We also find a strong need for further extension of RDT in IB research, offering suggestions for future research, including additional theoretical integration, underlying processes, and new dynamics that change the course of cross‐border interdependencies under the new global reality.Managerial SummaryThis study systematically reviews the stock of knowledge over the past 40 years on how the logic of resource dependencies unfolds in IB practices (e.g., cross‐border M&As, alliances and joint ventures, global supply chains, corporate political strategies, headquarters‐subsidiary relationships, and upper‐echelon decisions). Our findings and conclusions offer a decision roadmap for IB practitioners to assess various resource dependence situations with external and internal stakeholders in IB operations and to effectively manage such interdependencies. We also elaborate on the important implications of MNCs' strategies for effectively managing their resource dependencies in international exchanges in the modern world, which is characterized by the coexistence of trends leading of both globalization and de‐globalization.