International Business Strategy Research Articles

STRATEGIC MARKET ENTRY DECISION-MAKING IN AFRICA'S SATELLITE SECTOR: A COMPARATIVE ANALYSIS USING TOPSIS AND AHP METHODS

This paper investigates the strategic decision-making process for market entry into Africa's satellite telecommunications sector using two well-established multi-criteria decision-making (MCDM) methods: the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and the Analytic Hierarchy Process (AHP). Given the complex and varied nature of the African market, these methodologies are applied to evaluate multiple countries based on criteria such as market potential, regulatory compliance, and infrastructural development. By conducting a parallel analysis with TOPSIS and AHP, this study not only identifies Kenya as the most suitable market for entry but also validates the consistency and reliability of both methods in handling decision-making complexities in emerging markets. The findings highlight the importance of systematic and objective criteria evaluation in reducing uncertainty and enhancing decision quality in international business strategies. This paper contributes to the strategic management and international business literature by demonstrating the practical application and comparative effectiveness of TOPSIS and AHP in a high-stakes decision-making scenario. Keywords: Strategic Market Entry, Satellite Telecommunications, TOPSIS, Analytic Hierarchy Process (AHP), Multi-Criteria Decision-Making (MCDM). Decision-Making Framework

Microfoundations of International Business Strategy

Microfoundations of International Business Strategy

Rethinking institutional arbitrage: De jure exposure and de facto enforcement

AbstractResearch SummaryThis article disentangles the de jure and de facto dimensions of institutional distances to examine their impact on firms embedded across heterogeneous jurisdictions. I argue that significant transaction costs occur only when the de facto implementations of regulations from both home and foreign jurisdictions become irreconcilable. Using an original dataset of the enforcement actions of the US Foreign Corrupt Practices Act (FCPA), I find that institutional arbitrage becomes infeasible for non‐US‐based firms with de jure exposure to the FCPA when the de facto judicial constraints over bureaucratic discretion are weak in these firms' home countries targeted by FCPA enforcement. De facto FCPA enforcement makes such US‐listed firms more likely to divest from their home markets or voluntarily delist from US stock markets.Managerial SummaryMangers should consider the divergence or convergence between the de jure and de facto dimensions of institutional distance in evaluating their international business strategies. In analyzing the operational obstacles for engaging in cross‐jurisdictional activities, notably institutional arbitrage schemes, managers should realize that such obstacles do not simply arise from contradictions in officially stipulated regulations, but also from whether and the extent to which such de jure contradictions are activated. Assessing the feasibility of corporate political activities and other legally ambiguous nonmarket strategies as risk‐mitigation measures thus needs to take into account this distinction. MNEs' global strategies should also recognize the increasingly intertwined national and supranational legal systems and their interactions as sources of operational risks.

CRM СПРЯМО СТРАТЕГИИТЕ ЗА ИНТЕРНАЦИОНАЛИЗАЦИЯ

This study examines the pivotal role of Customer Relationship Management (CRM) in the realm of international business strategy. By analysing various definitions and models of CRM, it identifies how CRM strategies align with organisational goals across different market conditions and cultural landscapes. The paper synthesizes these findings to propose a comprehensive CRM approach that enhances customer satisfaction and organisational profitability while addressing the challenges of international business operations.

Unleashing synergy: exploring the impact of experiential learning and component technology on integration implementation strategy in cross-border technological acquisitions

PurposeDrawing on organizational design theory and organizational learning theory, this paper aims to examine component technology (CT) and the interaction between CT and experiential learning (EL) effects on the degree of integration (DI) of cross-border technological acquisitions.Design/methodology/approachUsing a sample of 267 firms consisting of 229 acquirer firms who started cross-border technological acquisitions from developed economies and 38 acquirer firms who initiated cross-border technological acquisitions from emerging economies over the period of 1993–2016, this study adopts a value chain framework to measure the acquirers’ acquisition integration degree for the investigation of the effects of CT and the interaction between CT and EL.FindingsFirst, this paper finds CT in cross-border technological acquisitions exerting a positive influence on the acquirer firm’s likelihood of the DI implementation, in line with the organizational design theory. Second, in view of organizational learning theory, this study finds EL and the combined effect of CT and EL to have an inverse influence on the DI.Practical implicationsThe results imply that the moderating role of EL significantly optimizes decision choices for an acquirer firm for integration implementation strategies in the form of DI, such as full integration (structural integration), partial integration and no integration (structural separation), which appears to be crucial for cross-border technological acquisitions.Originality/valueThis study contributed to international business strategies by shedding light on the importance of the DI for an acquirer firm that undertakes a cross-border technological acquisition with a CT target firm. This study explains why structural integration might be necessary in cross-border technological acquisitions regardless of the costs of disruption it imposes, as well as the contexts in which it becomes less important or unnecessary. The study disclosed that the increase in the likelihood of DI because of CT depends on the EL of the acquisition company in the host country environment and fluctuates with the prior acquisition knowledge and EL of the host country. Combining two cross-border technological acquisition’s literature streams, such as CT and EL, this study enlightens the importance of organizational learning theory and theory of organization design strategic direction making on acquisition integration implementation strategies.

Encompassing Diversity in International Business Education: A Case Study of Virtual Service-Learning

ABSTRACT Achieving inclusion and equity in international business (IB) education remains a challenge, given the rising costs of college tuition and the increasingly diverse and non-traditional student population. These changes may reduce the feasibility and relevancy of activities, such as study abroad programs, and an MNE-centric IB curriculum for a significant number of college students today. To overcome these challenges, in this paper, we share our findings from a case study on a virtual service-learning project that fostered cross-border interactions between undergraduate students in North America and small business owners in Central America. Over the course of one semester, students worked to draw connections between their unique individual backgrounds and skill sets, connect IB and global strategy concepts to small business operations, and deepen their understanding of sustainable development. Our findings demonstrate that this practice can enhance student enjoyment, academic learning, professional growth, and civic learning. Overall, virtual service-learning can be effective as an alternative teaching and learning approach to address the significant challenges in IB education.

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

PurposeThis 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/approachThe 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/implicationsThis 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 implicationsModern 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 implicationsIB 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/valueThis paper seeks to better define the offense implicit in modern slavery so to inform critical IB research into its causes and deterrence.

Winners and losers in U.S.–China trade disputes: A dynamic compositional analysis of foreign direct investment

AbstractBackgroundThe trade conflicts between the United States and China have significantly disrupted global trade and economic growth. In today's globalized economy where the production of goods and services spans across multiple nations, these disputes have far‐reaching consequences that extend beyond the involved parties and impact the broader global economy.ObjectiveWe examine the effects of the U.S.‐China trade disputes on multinational investment patterns in China and Southeast Asia.MethodsUsing a dynamic compositional approach, we analyze data on firm‐level greenfield foreign direct investment.ResultsWe observe European firms increasing their investments in China to enhance market penetration, while American firms are withdrawing, redirecting their focus toward Southeast Asia to mitigate dependence on the Chinese market.ConclusionThis shift highlights broader international business strategy trends amid geopolitical and economic changes. The results indicate significant transformations in global supply chains, shedding light on the extensive effects of U.S.–China trade tensions on global economic equilibrium and how these tensions are reshaping international investment and supply chain dynamics.

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.

Airbnb exits China: insights from platform competition

ObjetivoEste artículo de opinión pretende aportar ideas sobre la salida de Airbnb del mercado chino, concretamente desde la perspectiva de la competencia entre plataformas.Diseño/metodología/enfoqueBasándonos en la comprensión de la evolución y la competencia del mercado de alojamientos P2P en China, así como en los “efectos de red de doble filo”, este artículo de opinión ofrece una discusión en profundidad sobre la retirada de Airbnb del mercado chino.ResultadosEste documento sostiene que Airbnb enfrentó desafíos crecientes para establecer ventajas competitivas únicas frente a sus rivales locales, demostrando estos últimos una capacidad de innovación y del mantenimiento de la lealtad de sus clientes al adaptarse a la evolución del mercado. En consecuencia, esto puede inhibir a Airbnb para atraer al mercado principal y llevar a la empresa a una espiral negativa, exacerbada por efectos de red indirectos.Originalidad/valorEste estudio ofrece una visión del fracaso de un proceso de internacionalización, a partir de un análisis del entorno competitivo y de las estrategias de competencia de las plataformas de alojamiento P2P en China. Estos resultados tienen implicaciones prácticas para la aplicación de estrategias empresariales internacionales en los alojamientos P2P.

Internationalization of enterprises and quality of financial reports in China: Moderating roles of audit committee characteristics

In the process of seeking sustainable development, enterprises have chosen international business strategy. The purpose of this study is to examine the relationship between the degree of internationalization of Chinese listed firms and financial reporting quality, as well as whether audit committees can moderate the impact of enterprise internationalization on financial reporting quality. The empirical analysis results of Chinese listed manufacturing firms from 2014 to 2018 show that: the degree of corporate internationalization has a significant U-shaped relationship with earnings management. This new finding solves the problem that scholars have inconsistent views on the internationalization of enterprises and the quality of financial reporting. The study also found that audit committees with experience working in accounting firms can inhibit firm earnings management behavior in the early stage of internationalization; audit committees with experience working overseas can inhibit firm earnings management behavior in the later stage of internationalization; the higher the remuneration of audit committee experts, the more it can inhibit firm earnings management behavior in the early stage of internationalization. In the later stage of internationalization, the higher the remuneration of audit committee experts, it helps the earnings management behavior of firms. This provides new evidence on the functioning of the audit committee’s role; however, the independence of the audit committee and the proportion of financial experts do not have a significant effect on the inhibition of earnings management.

Strategi Bisnis Internasional Untuk Menghadapi Tantangan Ekonomi dan Politik di Tahun 2024

The year 2024 will be a year full of economic and political challenges for companies operating in international markets. Some of the factors that may affect international business are the Covid-19 pandemic, climate change, geopolitical tensions, trade protectionism, and digital transformation. This article aims to identify and analyze international business strategies that can help companies face these challenges. The strategies discussed include strategic alliances, product diversification, segmented digital marketing, flexible pricing adjustments, and international human resource management. The article also provides examples of companies that have successfully implemented these strategies in various markets. This article is expected to provide insights and inspiration for business people who want to improve their performance and competitiveness in the international market

Psychedelics and Global Wellness Industries and Change in Associated Strategies in International Business

This paper delves into the relationship between the burgeoning psychedelics industry and the broader global wellness sector. As psychedelics gain traction in therapeutic contexts, there has been a notable shift in international business strategies. The evolving legal, cultural, and commercial landscape around psychedelics has necessitated this shift, challenging the norms of both the wellness and pharmaceutical industries. These substances, once marginalized, are now at the forefront of holistic health conversations, prompting businesses to rethink product development, marketing, and global distribution efforts. This transformation promises potential economic, therapeutic, and societal benefits.

Ethical Leadership and Corporate Social Responsibility in Diversified Business Groups: a Conceptual Model of Asian and Latin America

Purpose: This research provides a brief review which explores theories and concepts in International Business (IB) and management, covering global market dynamics, factors influencing foreign direct investment, the role of national culture in socially responsible policies, decision-making processes, evolving trends in CSR, ethical leadership's relationship with CSR in diverse business groups, and advancements in online communication, simulation games, and enterprise systems. Valuable insights for practitioners and scholars are provided, illuminating the complexities of the dynamic field of business and management.
 
 Design/Methodology/Approach: This research paper employs diverse methodological approaches, including literature review, qualitative analysis, and theoretical modeling, to investigate various aspects of IB and management. Through a qualitative synthesis approach, key themes and findings related to the research topic are identified.
 
 Findings: This research highlights the significance of digital platforms in delivering global consumer value. Cultural differences influence Foreign Direct Investment (FDI) inflows, shaped by host country norms. European SMEs' profitability, responsible conduct, and B2B relationship tendencies are affected by national culture dimensions.
 
 Theoretical Implication: This analysis reveals the impact of digital platforms, cultural differences, and national culture on global markets and international business. It emphasizes ethical leadership, institutional diversity, strategic direction, and human rights.
 
 Managerial Implication: Managerial implications for international business strategies include leveraging digital platforms for value creation, assessing cultural agility competencies in talent identification, considering socio-cultural context in framing victimization experiences, incorporating factors like corruption, contract enforcement, IP protection, and cultural compatibility in FDI decisions.
 
 Industrial Implication: Significant implications found for the industry in utilizing big data, including ethical and legal considerations. Cultural adaptation crucial for FDI strategies and CSR initiatives. Ethical leadership as a competitive advantage for CSR.
 
 Originality and Value: This literature review highlights the significance of cultural adaptation in global markets, exploring the impact of national culture on corporate behavior. It introduces a novel model for ethical leadership and CSR in Digital Platforms and Ecosystems (DPEs). It serves as a valuable resource for researchers, policymakers, and practitioners in the field of International Business, identifying research gaps for future studies.

Social Frictions, Strategic Leadership, and International Business Strategy

Social Frictions, Strategic Leadership, and International Business Strategy

The Impact of Climate Change on International Business Strategies

bstract: This research paper explores the impact of climate change on international business strategies. It examines the risks and challenges posed by climate change, including supply chain disruptions, resource scarcity, and regulatory pressures. The study investigates how businesses are integrating sustainability into their strategies, adopting innovative technologies, and capitalizing on climate-related opportunities. It also analyzes the role of international collaborations, policy frameworks, and stakeholder engagement in shaping business strategies. Using a multidisciplinary approach, including case studies and data analysis, the research provides insights for policymakers and business leaders to formulate effective strategies in response to climate change. This study highlights the importance of addressing climate change impacts on international business for a sustainable and resilient future.

Striking a balance? Finance perspectives on international business research

PurposeThe purpose of this paper is to bridge the disciplinary divide between international finance and international business (IB) to realign academic research with business reality in which strategy and finance align to determine firms’ success or failures.Design/methodology/approachThe authors discuss theoretical differences between the fields of international finance and IB strategy that caused the fields to develop in isolation with little fertilization across disciplines. The authors review scarce interdisciplinary contributions between the fields. Finally, the authors identify complementarities that suggest fruitful avenues for future research.FindingsThe authors find a persistent disconnect between finance and strategy/IB literature that can be explained by fundamentally different aims and assumptions about the markets. While finance theory seeks to explain typical effects under functioning markets, strategy and IB theories focus inherently on exceptional effects and market inefficiencies.Research limitations/implicationsThe fundamental theoretical differences that isolate finance and strategy/IB create avenues for interdisciplinary research that harness the complementarities of the two disciplines. These include strategic aspects of capital structure, internal capital market inefficiencies, corporate governance, capital market liability of foreignness and institutional aspects of financial management.Practical implicationsWith this paper, the authors not only bring academic researchers in finance and strategy closer to corporate practice. The theoretical discussion also challenges the functional blind spots of practitioners and encourages more holistic decision-making.Social implicationsChallenging market functioning and recognizing market inefficiencies using strategy and IB foundations connects financial economics with non-market topics such as environment, society and governance or impact investing.Originality/valueThe value and originality of the paper come from the qualitative, epistemological approach to study and analyse the divide between international finance and strategy/IB scholarship.

The Multinational Enterprises Strategies in Emerging Economies

The purpose of this paper is to review international business articles, particularly what strategies in emerging economies and multinational enterprises subsidiaries strategies. The first paper is Hoskisson, Eden, Lau and Wright's 2000 article, entitled strategy in emerging economies. Emerging economies are low-income, fast-growing countries that rely on economic liberalization as their primary growth engine. Emerging Economies investigates strategy formulation and implementation by private and public enterprises in a variety of regional contexts and from three major theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm. The second paper is Amy J Hillman and William P Wan's 2005 article, The Determinants of MNE Subsidiary Political Strategies: Evidence of Institutional Duality. A model of the determinants of political strategies used by foreign subsidiaries of multinational enterprises (MNEs) is developed and tested in this study by integrating international business and political strategy literature to create a multilevel model of the subsidiary, host country, and parent determinants of political strategy. Using recent theoretical advances in institutional theory that acknowledge that MNE subsidiaries face pressures for isomorphism both within the corporation (internal legitimacy) and within the host country (external legitimacy). A common thread can be drawn between these two articles, namely the use of institutional theory in determining the strategy for multinational enterprises.

Towards a unified typology of digital communication technologies in international business: a tool for management and research

PurposeDigital communication technologies have become ubiquitous for various firm processes related to international business (IB) and global strategy. However, IB and strategy scholars lack an encompassing and theory-based typology of these technologies that facilitates analysis and discussion of their uses and effects. Likewise, managers have a large choice of technologies at their disposal making it difficult to determine what technology to use in different IB areas. This paper aims to develop a typology of digital communication technologies based on the synchronicity and interactivity of these technologies and capture their fundamental social and temporal dimensions. This results in four ideal types: broadcasting, corresponding, aggregating and collaborating technologies.Design/methodology/approachThis is a conceptual paper incorporating theoretical perspectives to theorize about four ideal types of digital communication technologies. A subsequent empirical test of this typology has been provided in the appendix.FindingsThe authors discuss how the typology might be applied in IB decisions and some of the contingencies that impact this choice. Building on that, the authors develop directions for future research to increase their understanding of the use of digital communication technologies to help improve IB functions. Overall, the authors suggest future research explores contingencies about where and when different types of digital communication technologies should be used. Finally, the authors provide implication of having a unified typology for both academics and managers.Originality/valueThe authors offer a robust framework for thinking about and capturing different types of digital communication technologies that can be applied by researchers and used by managers when making decisions related to IB. The authors also provide some initial testing of the typology with a three-country study design helping to determine its validity.

Ethical Leadership and Corporate Social Responsibility in Diversified Business Groups: A Conceptual Model of Asian and Latin America

Purpose: This research provides a brief review which explores theories and concepts in International Business (IB) and management, covering global market dynamics, factors influencing foreign direct investment, the role of national culture in socially responsible policies, decision-making processes, evolving trends in CSR, ethical leadership's relationship with CSR in diverse business groups, and advancements in online communication, simulation games, and enterprise systems. Valuable insights for practitioners and scholars are provided, illuminating the complexities of the dynamic field of business and management. Design/Methodology/Approach: This research paper employs diverse methodological approaches, including literature review, qualitative analysis, and theoretical modeling, to investigate various aspects of IB and management. Through a qualitative synthesis approach, key themes and findings related to the research topic are identified. Findings: This research highlights the significance of digital platforms in delivering global consumer value. Cultural differences influence Foreign Direct Investment (FDI) inflows, shaped by host country norms. European SMEs' profitability, responsible conduct, and B2B relationship tendencies are affected by national culture dimensions. Theoretical Implication: This analysis reveals the impact of digital platforms, cultural differences, and national culture on global markets and international business. It emphasizes ethical leadership, institutional diversity, strategic direction, and human rights. Managerial Implication: Managerial implications for international business strategies include leveraging digital platforms for value creation, assessing cultural agility competencies in talent identification, considering socio-cultural context in framing victimization experiences, incorporating factors like corruption, contract enforcement, IP protection, and cultural compatibility in FDI decisions. Industrial Implication: Significant implications found for the industry in utilizing big data, including ethical and legal considerations. Cultural adaptation crucial for FDI strategies and CSR initiatives. Ethical leadership as a competitive advantage for CSR. Originality and Value: This literature review highlights the significance of cultural adaptation in global markets, exploring the impact of national culture on corporate behavior. It introduces a novel model for ethical leadership and CSR in Digital Platforms and Ecosystems (DPEs). It serves as a valuable resource for researchers, policymakers, and practitioners in the field of International Business, identifying research gaps for future studies.