Field Of International Business Research Articles

International business–government relations research 1945–2015: Concepts, typologies, theories and methodologies

Seventy years after its postwar inception, the field of international business–government relations (IBGR) is rich in new concepts, typologies, theories and methodologies that have broadly reflected the three post-WWII periods of Confrontation, Accommodation and Competition. This analysis discusses the correspondence between these “new terms” and IBGR practice during each one of these periods which have continuously brought up new actors, issues and ideologies whose study keeps growing in quantity if not always in quality. It concludes with what can be anticipated regarding the international relations between business and governments in a future marked by much greater political disorder and less economic multilateralism as well as by nonmarket strategies that may remain localized.

Do We Need to Distance Ourselves from the Distance Concept? Why Home and Host Country Context Might Matter More Than (Cultural) Distance

AbstractWe scrutinize the explanatory power of one of the key concepts in International Business: the concept of (cultural) distance. Here we focus on its effect on entry mode choice, one of the most researched fields in international business strategy. Our findings might, however, be equally be relevant for the field of International Business as a whole. Our analysis is based on a review of 92 prior studies on entry mode choice, as well as an empirical investigation in over 800 subsidiaries of MNCs, covering nine host and fifteen home countries across the world. We conclude that the explanatory power of distance is highly limited once home and host country context are accounted for, and that any significant effects of cultural distance on entry mode choice might simply be caused by inadequate sampling. Entry mode studies in particular, and International Business research in general, would do well to reconsider its fascination with distance measures, and instead, focus first and foremost on differences in home and host country context. We argue that serious engagement with deep contextualization is necessary in International Business research to pose new and relevant questions and develop new and innovative theories that explain empirical phenomena.

Demand-side Perspectives in International Business: Themes and Future Directions

Abstract Demand-side perspectives represent a burgeoning research area in the fields of technology innovation, entrepreneurship and strategic management, yet are only at an early stage in the field of international business. Demand-side research looks outside the focal organization toward consumers and product markets to explain managers' strategic decisions — decisions that increase value created within a value system by emphasizing: consumer benefits experienced; thematic similarity (i.e., products and services that are used in performance of the same activity); value systems/ecosystems rather than a single focal organization only; and value creation for consumers rather than value capture for a firm. Demand-side research can be valuable for expanding the strategic actions available to multinational organizations and international social enterprises by integrating geographical expansion and business diversification in ways that can create the most value for heterogeneous end users both across and within national boundaries. This adds conceptual complexity to the international business field by raising international consumer issues to the strategic level – with, for example, investments in mergers and acquisitions and strategic alliances – rather than the more typical single-business or functional marketing levels. This added complexity has the potential to extend international business theories in new ways.

A brief commentary on the past, present and future trajectory of the Journal of World Business

In this brief commentary, we reflect on 50 years of the Journal of World Business and its predecessor, Columbia Journal of World Business. Commenting from our roles as authors, editorial board members, reviewers and advocates for the journal, we chronicle important trends in JWB's editorial emphasis and publication record, trends that are reflective of broader changes in the global business environment and the field of International Business. We derive a series of themes that have ebbed and flowed during the period, and reflect on these patterns and their implications for IB scholarship. We conclude by deriving insights from past contributions that can shed light on future directions in the international business field.

Organizational Image, Identity, and International Divestment: A Theoretical Examination

International divestment is a prevalent phenomenon and should be viewed as an integral part of the internationalization process. Nevertheless, the field of international business and strategy has paid scant attention to this topic. We develop a conceptual framework to examine a firm's propensity to divest internationally and the type of foreign operations it will divest. We posit that a firm's international divestment decisions are influenced by its organizational image and identity. Premised on this behavioral perspective, this article develops a theoretical model and generates a set of propositions to shed light on the topic of international divestment.

Americana Group: KFC in Mecca

Subject area Marketing, Strategy, International Business. Study level/applicability Post-Graduates' classes. Case overview This case focuses on the particularities of the Kentucky Fried Chicken (KFC) restaurant run by the Americana Group in Mecca, in the Kingdom of Saudi Arabia. It allows students in the service industry, and especially those interested in the quick service industry to understand some of the challenges of operating in a market with high volume and other specific local market conditions. Perhaps, it will also allow those organizations wishing to enter into emerging markets to realize that globalization does not mean standardization of all practices but rather values. Expected learning outcomes On completion of utilizing the case study as an exercise, students should be able to develop: Case-specific skills: critically examine the importance of the international business and marketing strategy in the Middle East and demonstrate this by analyzing real regional/ world examples using complex theoretical frameworks; identify examples of best practice and explain the dynamics toward international business and marketing strategy with reference to a range of theoretical models; and apply these in a meaningful way to the Middle East North Africa region. Discipline-specific skills: synthesize and critically evaluate a corpus of academic literature and government reports on international business and marketing strategy; and link international business and marketing strategy concepts and theories to real regional/world examples. Personal and key skills: reflect on the process of learning and undertake independen/self-directed learning (including time management) to achieve consistent, proficient and sustained attainment. Work as either a participant or a leader of a group and contribute effectively to the achievement of objectives in the field of international business and marketing strategy. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

GEA Group – doing business in the Middle East

Subject area Management, Strategy, International business. Study level/applicability Undergraduate or Graduates. Case overview This case is suitable for students of international business and strategy at the advanced undergraduate-level or introductory masters-level courses. It can be used for organizational design, brand management and business-to-business management classes. It may be of interest to practitioners in the Middle East and North African (MENA) markets looking at managing cross-functional teams. Expected learning outcomes On completion of utilizing the case study as an exercise, students should be able to develop the following. Case-specific skills: Critically examine the importance of the international business and strategy in the Middle East and demonstrate this by analyzing real-regional/-examples using complex theoretical frameworks; identify examples of best practice and explain the dynamics toward international business and strategy with reference to a range of theoretical models and apply these in a meaningful way to the MENA region. Discipline-specific skills: Synthesize and critically evaluate a corpus of academic literature and government reports on international business and strategy; link international business and strategy concepts and theories to real-regional/world examples. Personal and key skills: Reflect on the process of learning and undertake independent/self-directed learning (including time management) to achieve consistent, proficient and sustained attainment; work as a participant or leader of a group and contribute effectively to the achievement of objectives in the field of international business and strategy. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

A rational normative model of international expansion: Strategic intent perspective, market positions, and founder CEOs/family-successor CEOs

Ever since Hamel and Prahalad propose the importance of the strategic intent perspective, understanding the relationship between entrepreneurial ambitions and an international expansion strategy becomes a key issue in the fields of international business and strategic management. However, most previous studies focus on the strategic behaviors of the CEOs of large public firms. This study incorporates upper echelons theory and entrepreneurship research to build up a rational normative framework of strategic intent perspective, market leader/follower positions, and founder CEOs/family-successor CEOs for the international expansion strategy of small- and medium-sized enterprises and family firms. By applying an experimental design method, the results show that the rational analyses of the strategic intent perspective and market positions affect a firm's international expansion strategy. However, different generations of CEOs might have different perspectives on international expansion in a specific industry. These findings broaden entrepreneurship and the upper echelons theory's explanations of international expansion decision-making.

On the Influence of Interpersonal Relations on Business Practices in Latin America: A Comparison with the Chinese Guanxi and the Arab Wasta

The connection between interpersonal relationships and business practices is currently an object of study in the field of international business. The authors have identified a significant body of research literature characterizing this phenomenon in China, where it is denominated as guanxi, as well as a recent interest of the academy in studying the Arab wasta (i.e., clout or influence). The authors argue that a similar phenomenon occurs in Latin America and identify patterns similar to those of guanxi and wasta in a cultural artifact called compadrazgo. The article offers insight for managers and individuals interested in doing business in Latin America. © 2015 Wiley Periodicals, Inc.

The Resource-based View and SME Internationalisation: An Emerging Economy Perspective

Objective : The aim of the paper is to advance the development of theory in the field of international business by seeking to understand to what extent the resource-based view (RBV), built on the experience and evidence from advanced economies, helps understand the internationalisation process of emerging economy SMEs. Research Design & Methods : The paper is built on a systematic literature review of peer-reviewed journal articles on SME internationalisation motives and enablers in emerging economies. Findings: The RBV arguments explain the internationalisation process of emerging economy SMEs only to some extent. In contrast to advanced economy firms, the internationalisation of SMEs from emerging economies is more likely to be driven by the exploitation of cost advantage, and motivation to gain new knowledge that is unavailable domestically and enhance their domestic market reputation. Besides it is more handicapped by a lack of internationalisation experience or international ties. Implications & Recommendations: To understand the process of emerging economy SME internationalisation, it is necessary to study to what extent other logics contribute to its explication. Further research should also seek to synthesise findings of the above major theoretical frameworks in the context of emerging economy SME internationalisation process. Contribution & Value Added: The originality of this work lies in studying the internationalisation motives and enablers of indigenous SMEs in emerging economies and challenging the applicability of the RBV arguments in this specific context.

Knowledge Workers’ Willingness to Work for Foreign Firms

The field of international business has examined the rationale for expansion into foreign markets for many years. Recently, however, a light has been shone on the competition for talent in these ma...

A critical exploration of “access” in qualitative international business field research

Purpose– Researchers often face challenges in locating and obtaining relevant and meaningful information during qualitative international business (IB) field research in other countries. This process constitutes an immensely critical phase, which determines the success or failure of the research endeavour. The purpose of this paper is to discuss “access” as a multidimensional and contestable concept that poses particular challenges in international and multicultural research contexts.Design/methodology/approach– This paper builds on the experience as field researchers in China/Hong Kong (120 in-depth interviews) and the need to disseminate acquired field experiences, in particular concerning “access”. The multifaceted issue of “access” is rarely featured on the IB methodological agenda, and has become a silent feature of qualitative IB research.Findings– This paper is devoted to this nexus: the lack of focus on “access” issues, and the rich sources of acquired, but mostly veiled, field experiences that feature in both IB and management research programmes. A plausible explanation for this circumstance relates to the influence of mainstream positivist and objectivist paradigms in which researchers are not recognised as having an impact on research processes, hence taking this silent feature for granted.Originality/value– By viewing the multiple dimensions of “access”, we move beyond the mainstream understanding that merely relates it to the question of gaining access to a physical site and/or the time of an individual, and in which “access” is only an enterprise of securing pre-existing, tangible information. Drawing upon specific international field research experiences, this paper contributes to the methodological debate concerning “access” – beyond “technicality” and towards a concept of socio-cultural and multidimensional research practice.

Managers' Perceptions of the Impact of Cultural Differences on the Process of Internationalization of Polish Companies

A large sector of researchers in the International Business field, along with those in other fields (such as International Marketing and International Management), have dedicated themselves to research involving the reliability, applicability and generalizability of the psychic distance phenomenon.This construct has an influence on theinternationalization of companies. The aim of the article is to present qualitative research results on managers’ perceptions of the importance of one of the psychic distance stimuli, namely cultural differences,in the process of internationalization of companies. In the theoretical section of the article, the definition and operationalization of psychic distance and different stimuli of this construct are described.Particular consideration is dedicated tocultural differences. The second part of the article focuseson the research background.In the third part of the article, the importance of the differences in culture in the process ofinternationalization isevaluated. The article presents the respondents’ opinions on the significance of cultural values and practices, differences in religion and differences in languages in managers’ decisions on internationalization. The authorsfocus on the impact of cultural differences on the choice of directions of foreign expansion, market entry strategies, the amount of foreign expansion markets, the pace of internationalization as well as the value of sales and capital engagement abroad.

Contextualising the Irrelevance of “Values” to the Study of International Business: A response

At the small gathering at the University of Hong Kong that resulted in many of the papers published in this issue of the JBA, I was paired with Nigel Holden, well-known for his work on cross-cultural management (CCM) in the field of international business (IB). I am an anthropologist with over 20 years of experience researching cross-cultural business contexts. As we did in Hong Kong, here I respond to Nigel’s commentary.

Internationalisation of service firms through corporate social entrepreneurship and networking

Purpose – The purpose of this paper is to explore how employing corporate social entrepreneurship and developing a network of relationships with non-governmental organisations (NGOs) can support and contribute towards the internationalisation of service firms into the base of the pyramid (BOP) markets in emerging markets. Design/methodology/approach – This research adopts an exploratory approach employing qualitative multiple case studies. Three service firms that have targeted the BOP markets in India were studied. In total, 25 in-depth interviews were conducted with multinational corporations (MNCs) and their NGO partners. Data analysis was facilitated through pattern matching and systematic case comparison. Findings – The findings reveal that, by engaging in social entrepreneurship, these MNCs have focused on the neglected needs of the BOP population, developed sustainable solutions and empowerment, and started with social value creation and postponed value capturing. The pursuit of corporate social entrepreneurship has paved the way for them to establish relationships with NGOs. While the MNCs have mainly had the technical knowledge and financial resources required, collaboration with NGOs have allowed them to learn about the BOP’s specific needs and benefit from the NGOs’ knowledge, human resources and good relationships in this market. Originality/value – This research unravels how service firms can seize opportunities at the BOP. The authors build on social entrepreneurship theory and bring new insights to the field of international business. In addition, the authors broaden the network view and show how networking with social actors such as NGOs enables the mobilisation of resources, actors and activities in emerging markets.

Mastering the Art of Jugaad and Guanxi

Purpose: Successfully entering foreign markets is a major issue in the field of international business. Cultural ignorance increases uncertainty that hinders a firm's international performance. Research has shown that the impact of cultural differences is one of the biggest obstacles to entering the Chinese and Indian markets, which are seen as one of the more important and growing markets in the last decade. This paper builds a framework for analyzing and choosing effective business strategies across the divide between very different business systems and cultures. It assists western firms in how to enter these complex markets and increase the probability of success. Design/methodology/approach: the proposed conceptual model hinges on social networking theory. Three different strategies are presented based on the different cultural, political and historical settings of China and India. Findings: the paper builds a framework for India and China structured around three core attributes to building social networks. It shows what international firms need to do in-order to build social networks that allow access to the local markets and decrease business risks. Practical implications: the proposed conceptual models enable marketers to cope even with the most complex markets and improve their probability for success. Originality/value: the literature review demonstrates that researchers have not dealt in-depth with the social constructs of social networks, especially in India. The paper depicts the commonality and differences between the two countries and serves as a basic business model when penetrating these markets.

How congruent are managers’ perceptions of cultural distance with objective reality?

Purpose– The purpose of this paper is to examine the extent to which managers’ perceptions of cultural distance – one of the most important explanatory factors in the field of international business – are congruent with objective reality.Design/methodology/approach– By subjecting a sample of 242 export ventures to correlation and confirmatory factor analyses, managers’ perceptions of the cultural distance (i.e. perceived cultural distance) between 29 international markets and Sweden (the home market) were compared, with “objective” cultural distance gauged using Hofstede's (1980) scores for dimensions of national culture.Findings– A statistically significant correlation was found between managers’ perceptions of cultural distance and “objective” cultural distance.Originality/value– Despite the importance of perceptual data in many theoretical and practical domains, few studies analyze the validity of such data. The present findings validate the congruence of perceptual data regarding cultural distance with “objective” cultural distance.

Forty years of internalisation theory and the multinational enterprise

Purpose– The purpose of this paper is to review the key analytical principles of internalisation theory as a general theory of the multinational enterprise (MNE). It illustrates the vitality, relevance and flexibility of the approach in explaining the continued evolution of the MNE. As a grounded social science theory, it provides, in combination with history and economic geography, satisfying and novel explanations of the key phenomena of the modern globalising economy.Design/methodology/approach– This paper examines the origins and principles of internalisation theory as the foundation theory of the MNE. It considers internalisation theory in the context of current and mainstream theories and concepts in the field of international business.Findings– Internalisation theory is equally valid for the MNEs of yesteryear as it is for those today. The theory continues to have strong explanatory power for MNE activity. Current research areas, such as multiple embeddedness, fine-slicing of the value chain, etc., and other theories, such as dynamic capabilities and the resource-based view, either are subsets of internalisation and thus explained by the theory, or contain weakness and/or inconsistencies not found in internalisation theory.Originality/value– This paper coherently synthesises internalisation theory, its origins and evolution. It shows how commonly held and current concepts and theories are related to internalisation theory or have weaknesses, thus making internalisation theory a superior theory to explain the MNE, and identifies potential applications of the theory to novel research areas in the field of international business.

Competitive embeddedness: The impact of competitive relations among a firm's current alliance partners on its new alliance formations

Over the last decades, alliance portfolio has been an important research area within the management and international business fields. Since engaging in multiple alliances provides many advantages to firms, the extant literature rather highlights the positive side of alliance portfolios. But, at the same time, focal firms of alliance portfolios sometimes suffer from competitive relations among their partners. By applying a competitive embeddedness lens, we examine the influence of competitive relations among partners within an alliance portfolio on the focal firm's alliance formations. Also, we examine the role of the focal firm's resources which moderate the relation between competition among its partners and its alliance formations. We investigated 2539 cases of global technology alliances in the biopharmaceutical industry from 2002 to 2006 through negative binomial regression. Our findings indicate that a holistic approach toward alliance portfolios to prevent competition among partners is significant for sustainable alliance strategies. Moreover, we suggest that firm resources which attract partners also lessen the impact of competition among alliances.

CHANGES IN INTERNATIONAL BUSINESS FORMS IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Nowadays, sustainable development is much discussed and is regarded as a very important issue. It is all around us, in every part of our everyday life. It inevitably leads to changes in the economic and social behavior of every country even though these changes in the different economic areas are not well explored yet. Highlighting and identifying them, specifically in the field of international business operations, lead to development and implementation of a scientific research project called “Global challenges in the environment protection and changes in the international business.” The research interest was focused on studying the changes in the international business operations in the context of environmental protection on the basis of two specific environmental pollutants—waste and greenhouse gas emissions. The main methods used were reviews and analysis of literature in the field of sustainable development and international business, critical analysis of the EU policies for waste minimization and climate change mitigation, practical experience, and experts’ opinion.The project results showed that in sustainable development conditions, new economic activities emerge such as bio-trade, production of bio-goods, and consultancy services on environmental issues. Some well-known activities, such as public procurement or public-private partnership, are getting green. In the field of international business, the modifications are related to, for example, development of additional supply chain called “waste chain”, import and export of pollutants, such as waste and emissions, etc. It turns out that most of these changes are a result of the numerous measures taken by the institutions on national and international level to stimulate a sustainable way of work. In this article, only a few of them are briefly discussed.