International Business Scholars Research Articles

Advancing Theory Development in Emerging and Frontier Markets: Embracing Indigenous and Historical Perspectives in International Business Scholarship

Existing international business theories primarily focus on developed markets, prompting calls to use emerging and frontier markets as laboratories for theory development. These markets’ distinct cultural and institutional settings offer opportunities for novel theories. However, there has been limited theory development in these contexts. The purpose of this paper is to discuss the challenges associated with theory development in emerging and frontier markets and provide guidance on effectively building theories using these contexts. It proposes embracing indigenous and historical theorizing to gain profound insights specific to each context and offers practical guidance for developing novel theories.

The Curvilinear Impact of Cultural Friction on Foreign Divestment

International business scholars have long recognized the potential influence of cultural differences on foreign divestment; however, the empirical results are mixed. Our study helps resolve this contradiction and contribute to the existing literature in three ways. First, we advocate the use of cultural friction metric, instead of the more traditional cultural distance approach. This overcomes a key limitation in the modelling the impact of cultural differences. The friction construct metric includes an index of firm-specific factors, referred to as the degree of ‘cultural interaction’. This index moderates the impact of cultural distance, reflecting firm—level differences. We also build on calls for more Positive Organizational Scholarship by challenging the negative bias in the international business literature and propose a curvilinear effect of cultural differences on divestment probability. Lastly, we investigate a potential boundary condition—the moderating effect of entry mode on the main hypothesis. Our empirical sample include 2120 Finnish foreign subsidiaries operating in 40 countries during 1970–2010. Our analyses confirm that the cultural differences, when measured by the friction metric, appear to be a significant and superior predictor of subsidiary divestment probability, and that the relationship appears to be U-shaped. Our robustness analyses also highlight the importance of which cultural framework is applied and controlling for selection bias.

How wicked is modern slavery: a consideration of Raškovic’s “taming wicked problems”

Purpose This is a response to “Taming wicked problems”, a paper recently published in CPOIB in which modern slavery is framed as a wicked problem. The purpose of this study is to convey the author’s appraisal of its contribution to policymaking regarding modern slavery in global supply chains. Design/methodology/approach The author engages in a discursive review of “Taming wicked problems”, taking inspiration from its perceived strengths and weaknesses to expand on the problem of modern slavery as a challenge to international business (IB) researchers. Findings “Taming wicked problems” is welcomed as a provocative contribution to modern slavery research in IB, although it is perceived to give too little critical attention to the problem of modern slavery itself. Research limitations/implications This is, by design, a subjective assessment of the treatment of modern slavery and policy from the perspective of an IB researcher who has previously studied the phenomenon without a wicked problem framing. Practical implications Modern slavery is a serious problem for IB scholars, as they have failed to extrapolate it from their analysis of international business strategy. This paper is intended to advance the disciplinary defence of vulnerable workers exploited to the ultimate benefit of MNEs. Social implications IB must engage critically with international business strategies that heighten the risk of human rights violations. The persistence of modern slavery disadvantages all persons in employment. Originality/value This paper seeks to better define the offense implicit in modern slavery so to inform critical IB research into its causes and deterrence.

Not gone away: how domestic terrorism impacts multinationals in foreign markets

Purpose The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms. Design/methodology/approach This is a conceptual paper. Findings Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures. Originality/value The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.

Effects of gender equality and social costs of failure on early-stage entrepreneurship activity

PurposeIn this study, we question: how do the social costs of failure interact with gendered institutions to affect the early stage entrepreneurship activity? We address this question by employing the institutional theory and a unique dataset of 286,989 entrepreneurs across 35 countries.Design/methodology/approachTo test our hypotheses, we use a multilevel modeling analysis that nests individual entrepreneurs within the countries. To capture individual and country-level variables, we constructed a unique dataset that combines data from the Global Entrepreneurship Monitor (GEM), European Flash Barometer (EUFB), World Bank Development Indicator (WDI), World Bank Doing Business Report (WBDB) and World Economic Forum (WEF).FindingsOur analysis confirms that higher levels of the country-level gender equality positively correlate with the early-stage entrepreneurship activity of women. Moreover, we find that this positive relationship is amplified in institutional environments with high social costs of failure, suggesting that societal intolerance for failure can exacerbate the negative effect of gender inequality on the participation of women in entrepreneurship.Research limitations/implicationsOur research contributes to academic interest on the role of legitimacy in women entrepreneurship and is of particular interest to international business scholars, seeking a better understanding of multidimensional construction of institutional frameworks across countries. In this study, we set out to address an important research question: how do the social costs of failure interact with gendered institutions to affect entrepreneurship activity? Our study provides a comprehensive portrait of gendered institutions by including the framework conditions of education, healthcare and political power. We found that in societies with gender equality, the likelihood of individuals engaging in the early-stage entrepreneurship activity is higher and that the positive relationship is strengthened in national environments with high social costs of failure.Practical implicationsOur study findings underscore the need for government policies addressing global gender gaps in economic empowerment. In particular, policies assisting women in obtaining education in high-growth industries like information technology or providing funding to women-dominated industries may foster activity for women seeking to do business in such industries. Such policies connect the early-stage entrepreneurship activities with gender equality concerns and initiatives.Social implicationsRegarding the social costs of failure construct, specifically, prior studies generally focus narrowly on the context of failed entrepreneurs. We cast a wider net on men and women entrepreneurs’ entry decisions (irrespective of prior experience with business failure) and provide new views on the effects of social costs of failure on entrepreneurial ecosystems. We also extend the research on the legitimacy of women as entrepreneurs with the gender equality construct.Originality/valueUnlike previous studies, which often focus on the “3Ms” of market, money and management, our research adopts a more holistic perspective. We recognize that the opportunities and challenges faced by entrepreneurs are shaped not only by individual skills and resources but also by the broader macroenvironment. By incorporating the framework conditions of education, healthcare and political power, alongside the intricate interplay of social costs and norms, our study paints a comprehensive picture of the landscape of female entrepreneurship.

Stepping stones across a fast-flowing river: supporting emerging scholars from emerging markets

Purpose International business as a field values perspectives from various contexts, but scholars from emerging markets face a number of often-unseen challenges preventing them from fully contributing to the field. This study aims to explain those challenges and what the author has done to manage them. Design/methodology/approach This is a Reflexive piece in which the author makes sense of her own experience as a scholar not only of but also in an emerging market, as well as the experiences at her school in seeking to develop a high-quality doctoral program. Findings When leading scholars interact, whether in writing or in person, they tend to be in academically and otherwise well-resourced locations. This is true even for the leading international business scholars of emerging markets, and it imposes time and financial costs on scholars located in emerging markets wanting to participate in such conversations. Having experienced such challenges, the author worked with colleagues to design a doctoral program that could nurture rich scholarly conversations at the school. However, there remains a clear and pervasive tension between the inclusive aspirations of the field and the tendency for cutting-edge academic conversations to be concentrated in the developed world. Originality/value The experiences of emerging market scholars remain underrepresented in the field. By drawing on her own experience, both as a scholar and the head of the doctoral program at her school, the author provides suggestions for how to think about and develop a more inclusive scholarly conversation.

SOCIAL NETWORK STRUCTURE AND FIRMS’ INTERNATIONALIZATION: NEW INSIGHTS FROM A WHOLE-NETWORK PERSPECTIVE

Objective: The aim of this study was to analyze the social network structure of the oil and gas (O&G) cluster in Rio de Janeiro, Brazil. We explore whether internationalized firms concentrate in specific sections of the social network, and scrutinize whether internationalization is associated with a firm’s attributes and its direct and indirect network ties. Method: This research applies social network analysis, which allows us to identify dense sections, popular nodes, and strategic position. We apply partitioning techniques to determine the extent to which a firm’s internationalization is affected by those to whom it is connected. Main results: Our findings show that internationalized firms concentrate in dense sections of the network, which are characterized by high interconnectedness. Furthermore, there is indicative evidence that interaction among firms and their attributes embedded in the social network structure is associated, at least in part, with the diffusion of internationalization. Relevance / Originality: Most studies targeting the network focus on the so-called ego network. This study applies a whole-network perspective to consider popular communities and central nodes and, ultimately, show how social behavior is diffused within the social network structure. Theoretical / Methodological Contributions: Drawing upon the network theory, we emphasize interdisciplinarity to advance international business (IB) scholarship. In particular, we qualify the Uppsala model’s assumption of network/relational capability, that is, the ability to build, sustain, and coordinate relationships by demonstrating the relevance of the social network structure to the internationalization process.

Institutional theory and multinational corporation internationalization strategy: a systematic review and future research agenda

PurposeThis study reviews the literature on institutional theory in international business and examines the institutional factors behind the success or failure of multinational corporations (MNCs) in emerging markets.Design/methodology/approachThis systematic literature review analysed 116 peer-reviewed articles published in leading journals between 2005 and 2022. The R package Bibliometrix and VOSviewer visualization software were used for analysis. A hybrid methodology combining bibliometric and content analyses was utilized to obtain a descriptive evaluation of the publication impact along with a keyword co-occurrence map, context-specific institutional effects and subsidiary strategies.FindingsThe Journal of International Business Studies, along with influential authors such as Mike W. Peng, Klaus Meyer, and Mehmet Demirbag, have taken the lead in advancing institutional theories for MNC internationalization in emerging markets. The clusters from the co-word analysis revealed dominant MNC entry modes, institutional distances and MNC localization strategies. The content analysis highlights how the institutional environment is operationalized across the macro-, micro- and meso-institutional contexts and how the MNC subsidiary responds in emerging markets. Meso-level interactions emphasize the relational aspects of business strategies in emerging markets.Practical implicationsContextualizing subsidiary strategies and institutional forms can help managers align their strategic responses to the dynamic relationship between subsidiaries and the institutional environment. The review findings will enable policymakers to simplify regulatory policies and encourage MNC subsidiary networks with local stakeholders in emerging markets.Social implicationsLegitimacy strategies such as corporate community involvement in emerging markets are crucial for enhancing societal support and removing stakeholders' scepticism for MNC business operations in emerging markets. Moral legitimacy should be implemented by managers, such as lending support to disaster management efforts and humanitarian crises, as they expand to new business environments of emerging markets.Originality/valueThis study is the first to explore institutional diversity and subsidiary strategic responses in a three-layered institutional context. The findings highlight the relevance of contextualizing institutional perspectives for international business scholars and practitioners as they help build context-specific theoretical frameworks and business strategies. Future research recommendations are suggested in the macro-, micro- and meso-institutional contexts.

The knowledge-based view in international business: A systematic review of the literature and future research directions

The knowledge-based view (KBV) has been particularly influential for developing and shaping the international business (IB) field. IB scholars have used the KBV to explain a wide range of IB phenomena. However, to date, there has been no systematic review of the literature on the KBV in IB. This study aims to fill this gap. To this purpose, we identified and analyzed 124 articles published at the intersection of the KBV and the IB field in 40 academic journals from 1999 to 2021. Drawing on our findings, we reveal the current state of the KBV in IB and identify the knowledge types and processes required for firms to navigate the global environment, as portrayed by the studies included in our review. We then highlight promising future research directions to advance the KBV and the IB field.

Going complex or going easy? The impact of research questions on citations

The growing need for academic impact requires researchers to develop and address important ideas. In this paper, we analyze how theory has been framed and operationalized within international business scholarship, which has a long tradition of producing research that accounts jointly for multiple research contexts and levels of analysis. We focus on two key aspects of published articles: the complexity of their research questions and how the research questions are translated into testable hypotheses. We further assess how the complexity and operationalization of research questions have been received by business/management, interdisciplinary, and practice-oriented research audiences. To achieve this, we examine a sample of 423 quantitative articles published in the Journal of International Business Studies between 2005 and 2015, and consider the articles’ citations during 2010–2020. Our paper provides suggestions about how authors might better frame research questions that are both important and impactful.

Moving beyond delinking, decoloniality and the pluriverse: reflections on the “decolonizing international business” debate

PurposeThis viewpoint adds context and variety to the “decolonizing international business” debate by engaging in a discussion of the decolonial thinking approach and proposing a broader framework for analysing the link between international business (IB) activities on the one hand and colonisation and decolonisation on the other. The purpose of this paper is to inspire a more intensive engagement of IB scholarship with issues related to colonisation and decolonisation.Design/methodology/approachThis paper involves taking a reflexive review on recent calls to decolonise IB, contextualising and extending the decolonisation debate in the academic field of IB.FindingsThis paper argues that the current discussion of decolonisation should be extended beyond the decolonial thinking approach and its focus on knowledge and the cultural dimension towards a broader framework that covers both colonisation and decolonisation as well as the respective economic, political, social and cultural dimensions. It introduces the varieties of colonisation and decolonisation approach, which considers the complexities of the phenomenon and covers the economic, social, political and cultural dimensions.Research limitations/implicationsThrough its focus on foreign market expansion, international trade, global value chains and formal and informal institutions in the business environment, the academic field of IB provides several starting points for research on the link between IB activities and colonisation and decolonisation. The decolonisation debate can be used to inspire future research in IB, for example, with respect to the role of multinational corporations in colonisation and neo-colonisation processes and the implications of the emerging multipolar world order for IB.Practical implicationsIB scholars will be better informed when engaging in discussions on decolonisation and the decolonise IB project. This paper suggests considering both colonisation and decolonisation processes as well as the respective economic, political, social and cultural dimensions in research and teaching. The varieties of colonisation and decolonisation approach provides a comprehensive and flexible alternative framework to analyse issues related to colonisation and decolonisation.Social implicationsA balanced view of the implications of colonisation and decolonisation with respect to economic, political, social and cultural dimensions may suitably be incorporated in the field of IB and contribute to tackling grand societal challenges. This applies likewise to past, current and future processes of colonisation and decolonisation.Originality/valueThis paper contextualises and adds a new perspective and variety to the current debate on decolonising IB. This is valuable for engaging in discussions on decolonisation and future conceptual and empirical research on the topic.

On the economic implications of international travel restrictions: Evidence from Chinese MNEs’ firm value

During the early stage of the COVID-19 pandemic, many countries and regions issued travel restrictions to prevent the spread of the virus. However, little is known about the impacts of such policy changes on individual businesses, particularly multinational enterprises (MNEs) that involved in business activities across countries. Drawing upon signaling theory and resource dependence theory, we find that the MNEs directly affected by travel restrictions experience significant reductions in shareholder value in both the short and long term. Furthermore, state ownership mitigates the negative effect of travel restrictions on MNEs, but having a large number of overseas subsidiaries and high-tech characteristics deepens the adverse effects caused by travel restrictions. These findings offer new research directions for international business scholars to explore the economic consequences of public policies resulting from global emergencies, and provide insightful lessons for managers to respond to international crises and for policymakers to develop future public policies.

Unravelling cross-country regulatory intricacies of data governance: the relevance of legal insights for digitalization and international business

AbstractIn an era of digital transformation, where data is often referred to as the ‘new oil’ of business, with data privacy and cybersecurity incidents recurrently making the headlines, international business (IB) scholars are increasingly grappling with the challenges posed by disparate data governance regulations. Recognizing the growing importance of this topic for IB research and policymaking, our paper seeks to offer a comprehensive examination of cross-country regulatory intricacies of data governance, frequently described by IB scholars as ‘complex’ and ‘pluralistic’ institutional contexts. This allows us to explore the various implications of diverse data governance regulations on international business, thus laying the groundwork for rigorous IB policy studies in this area. As a preliminary finding, we highlight a greater need for international cooperation, where both policymakers and multinational enterprises play a pivotal role. Using the EU data governance framework as an illustrative example, we structure our discussion around four policy areas of data governance: data use; data transfers; data storage; and data flows. We aim for this categorization to serve as a foundational basis for future IB research, aiding in tackling one of the most pressing digital challenges of this day and age: reconciling data privacy and security with data-driven innovation.

Comparative capitalism and the empirical taxonomy of context: enhancing the institutionalist blueprint

PurposeCritiques of international business (IB) have long pointed to the weaknesses in the understanding of context. This has ignited debate on the understanding of institutions and how they “matter” for IB. Yet how institutions matter ultimately depends on how IB applies institutional theory. It is argued that institutional-based research is dominated by a narrow set of approaches, largely overlooking institutional perspectives that account for institutional diversity. This paper aims to forward the argument that IB research should lend greater attention to comparing the topography of institutional configurations by bringing political economy “back in” to the IB domain.Design/methodology/approachUsing principal components analysis and hierarchical cluster analysis, the authors provide IB with a taxonomy of capitalist institutional diversity which defines the landscape of political economies.FindingsThe authors show institutional diversity is characterised by a range of capitalist clusters and configuration arrangements, identifying four clusters with distinct modes of capitalism as well as specifying intra-cluster differences to propose nine varieties of capitalism. This paper allows IB scholars to lend closer attention to the institutional context within which firms operate. If the configurations of institutions “matter” for IB scholarship, then clearly, a quantitative blueprint to assess institutional diversity remains central to the momentum of such “institutional turn.”Originality/valueThis paper provides a comprehensive survey of institutional theory, serving as a valuable resource for the application of context within international business. Further, our taxonomy allows international business scholars to utilise a robust framework to examine the diverse institutional context within which firms operate, whilst extending to support the analysis of broader socioeconomic outcomes. This taxonomy therefore allows international business scholars to utilise a robust framework to examine the institutional context within which firms operate.

The role of founder CEO and independent board in family firms' international growth: evidence from India and Italy

PurposeThis paper investigates the role of the founder CEO and board independence in shaping the way in which Indian and Italian family firms (FFs) pursue international growth via two modes, that is exports and FDI. This article claims that country's context matters in determining the relationship between the presence of the founder CEO and FFs' extent of exports and extent of FDI. Further, this article examines the moderating role of board independence on the above-mentioned founder CEO–FF's international growth relationship.Design/methodology/approachUsing a fixed-effect panel data method, this article tests the hypotheses on a sample of 1,275 Indian FF-year observations and 705 Italian FF-year observations over the period 2008–2015.FindingsThis article reveals that the presence of a founder CEO is positively associated with the extent of exports but negatively associated with the extent of FDI in Italian firms. However, in case of Indian firms, the presence of the founder CEO is negatively associated with the extent of exports as well as with the extent of FDI. This founder CEO's influence on the firm's international growth is mitigated by the presence of an independent board in Italian firms; however, this moderation is not significant in the case of Indian firms.Research limitations/implicationsIt is important to capture heterogeneity within family firms and across institutional contexts while studying family firms' international growth. Further, it is important for international business scholars to theorize for different modes of international growth because challenges faced in expansion via exports are different from the challenges faced in expansion via FDI (foreign subsidiaries). Therefore, family firms leadership might prefer a certain mode of international growth.Practical implicationsThe findings of the study imply that national culture and institutional context could play an important role in determining (a) Founder CEO's inclination towards FF's extent of exports and FDI as well as (b) the effectiveness of an independent board in mitigating founder CEO's influence on FF's international growth.Originality/valueThis work is one of the very few studies that examines the impact of FF's heterogeneity and country heterogeneity on two modes of international growth, namely exports and FDI, in the Indian and Italian contexts. Further, this work provides empirical evidence on the independent board's role in mitigating founder CEO's influence in decision making in the case of Italian firms. Extant literature expects an independent board to encourage FFs' international growth both via exports and FDI; this study shows that independent boards could reduce the founder CEO's inclination towards exports and mitigate founder CEO's influence on the decision making; however, this mitigation effect is highly context dependent.

Corruption revisited: the influence of national personality, culture, and wealth

Corruption is often seen as one of the root causes of pressing national and global challenges. The persisting stark national differences in corruption levels and their potential causes have thus attracted growing interest from international business scholars. The objective of this study was to re-examine key factors that predict levels of national corruption. Drawing on comprehensive personality data from over 5 million respondents across 87 nations, and numerous dimensions of national culture, the study examines the relative importance of national personality versus national culture and wealth as predictors of national corruption. Regression analysis found that collectivism (particularly societal practices pertaining to collectivism) and wealth were robust predictors of corruption. In contrast, there was no consistent support for the effects of the Big Five personality traits aggregated to the national level, above and beyond the effects of national culture and wealth. These findings highlight and specify the important role played by national culture, and call into question previous research on national personality and corruption. More broadly, our study further highlights the need to exert caution when examining the influence of national-level personality, and the need for cross-national personality researchers to improve the validity, interpretability, and replicability of their work.

Decolonizing international business

PurposeThe purpose of this paper is to encourage scholars of international business (IB) to engage with the “decolonizing the university” project and reflect on what decolonizing might mean for IB research and education. The paper also argues that it is particularly important for IB scholars to join the decolonizing project given that the field’s main object of study – the multinational enterprise – has been central to colonialism.Design/methodology/approachAn essay style is adopted to introduce the decolonizing project to IB and to explain why and how this scholarly field might benefit from engaging with it. As part of that, the paper calls upon IB scholars to work on decolonizing the field and to do so by not only interrogating its knowledge claims but also broadening the scope of its research so it can address the theme of neo-colonialism.FindingsThe paper reveals the conspicuous absence of IB scholars from the decolonizing project and situates such absence within a long-standing indifference within IB to the issue of colonialism.Social implicationsIn learning about and engaging with the decolonizing project, IB scholars will be able to not only enrich IB theory and education but also help to tackle one of the grand challenges facing the modern world society, namely, social inequality and injustice rooted in colonialism.Originality/valueIt is hoped that this paper will stimulate reflection on IB’s absence from the decolonizing project and assist scholars in developing an understanding of the project’s rationale and underlying literature. It is also hoped that the paper will open dialogue within IB about how this field might be decolonized and help scholars engage meaningfully with other disciplines as they do so.

Blockchains: A review and research agenda for international business

A growing number of firms around the world are adopting blockchain technology. However, international business literature has devoted little attention to blockchain despite its potential to transform the field. Our study seeks to provide a thorough understanding of blockchain and the implications of the technology as it represents a new way to produce and maintain trust between organizations. We also provide a comprehensive discussion of the implications of blockchain for international business research. Specifically, we evaluate how blockchain can help firms overcome gaps in trust and increase transparency in supply chains, improve inter-organizational relationships, and reduce the need to internalize activities by lowering transaction costs. We also discuss how blockchains are transforming capital raising activities and accelerating the speed with which firms internationalize. We conclude with research opportunities for international business scholars to pursue to better understand the implications of blockchain technologies.

Building Resilience for Surviving and Thriving in a VUCA Context

Surviving and thriving in the context of VUCA (volatility, uncertainty, complexity, and ambiguity) has become a pressing issue in international business. While contemporary international business scholarship offers insight into resilience-building under VUCA conditions, the mechanisms that link decision-making at the top with organizational action are less clear. We proffer a sand-clock model of resilience-building that combines resourcefulness, time interpretations, and entrepreneurial judgments. MNE decision-makers can apply the model to build resilience for surviving and thriving in a VUCA context by embracing sustainability, analyzing temporal signals, and making better judgments.

Developing international business scholarship for global societal impact

The purpose of this JIBS editorial is to outline the vision and mission of the new JIBS Societal Impact Advisory Committee (SIAC). We define “societal impact” as research that has potential effects outside academia, for example, on communities, economies, environments, and other actors. We propose that societal impact is especially important for international business (IB) research but also particularly challenging, given the cross-national dimensions of IB and the differing social, economic, and political preferences faced by MNEs across the contexts in which they operate. We reference the Responsible Research in Business and Management (RRBM) movement and other professional association initiatives as potential sources of inspiration and guidance for understanding the societal impact of IB research generally and the vision and mission of the SIAC in particular. We outline some implications for IB scholarship to improve its societal impact and conclude by describing SIAC’s roles and responsibilities as related to JIBS authors, editors, reviewers, and the broader IB scholarly and practice communities.