International Business Studies Research Articles

Resilience or decline of informal networks? Examining the role of trust context in network societies

The nature of informal networks in various societies, and particularly whether they recede or tend to persist over time, has long been a subject of discussion in international business studies. However, empirical research on trust in network-oriented societies, where individuals typically maintain somewhat different relationships with their in-group, out-group, and non-specified others, remains limited. Drawing on insights from informal network research and intergroup contact theory to model trust relationships in network societies, 882 respondents from three network societies -- China, Russia, and South Korea -- were surveyed, and confirmatory factor and path analyses applied. The results suggest that as network importance increases, both in-group trust and out-group trust also increase. Individuals who more commonly draw upon out-group trust ties attach less importance to in-group trust ties. Increases in non-specific trust, however, are associated with increases in both in-group and out-group trust, pointing towards the boundary spanning function of non-specific trust. Consequently, rather than finding a clear indication of whether informal networks persist or recede, ambivalent trust relationships were observed. This calls for a reexamination of the conventional ‘either/or’ perspective on the nature of informal networks. This network heterogeneity can be attributed to individuals, especially in developing network societies, utilizing a ‘both/and’ approach to trust and networking, and yielding more economic opportunities.

Branding a small state as an innovation business partner

AbstractApproximately 50 small countries depend on international cooperation for their survival as sovereign nations. This case study contributes to the discussion of cosmopolitanism versus internationalism in public diplomacy and place branding. It argues that limited bilateral partnerships with universities and businesses based on government-to-government agreements and shared interest are a safer strategy for small countries seeking reputational security than outspoken support for cosmopolitan values. This strategy is a very useful form of place branding, especially in times of crisis and uncertainty. The case examined is Innovation Centre Denmark, with offices in innovation hotspots in various countries. It organizes its activities as bilateral triple helixes, inspired by the work of Henry Etzkowitz and his colleagues. The center developed as part of a nation branding strategy launched by Denmark, a small Nordic country, following the so-called Muhammad crisis in 2005–2006. Then Prime Minister Anders Fogh Rasmussen described the controversy as Denmark’s worst international relations incident since WW2, as it damaged the country’s brand in some parts of the world. The article is multidisciplinary in nature, as it combines theories from international relations, business studies, and communication. The public diplomacy approach adopted is primarily represented by Nicholas Cull and his colleagues.

Intersectionality as a conceptual lens for advancing diversity, equity and inclusion in international business studies: newer developments from critical cross-cultural management studies and their insights for the business case

Purpose Using intersectionality and introducing newer developments from critical cross-cultural management studies, this paper aims to discuss how diversity is applicable to changing cultural contexts. Design/methodology/approach The paper is a conceptual paper built upon relevant empirical research findings from critical cross-cultural management studies. Findings By applying intersectionality as a conceptual lens, this paper underscores the practical and conceptual limitations of the business case for diversity, in particular in a culturally diverse international business (IB) setting. Introducing newer developments from critical cross-cultural management studies, the authors identify the need to investigate and manage diversity across distinct categories, and as intersecting with culture, context and power. Research limitations/implications This paper builds on previous empirical research in critical cross-cultural management studies using intersectionality as a conceptual lens and draws implications for diversity management in an IB setting from there. The authors add to the critique of the business case by showing its failures of identifying and, consequently, managing diversity, equality/equity and inclusion (DEI) in IB settings. Practical implications Organizations (e.g. MNEs) are enabled to clearly see the limitations of the business case and provided with a conceptual lens for addressing DEI issues in a more contextualized and intersectional manner. Originality/value This paper introduces intersectionality, as discussed and applied in critical cross-cultural management studies, as a conceptual lens for outlining the limitations of the business case for diversity and for promoting DEI in an IB setting in more complicated, realistic and relevant ways.

Emerging market MNEs, digital transformation and ESG performance: evidence from China’s listed companies

ABSTRACT The importance of emerging market multinational enterprises’ (EM-MNEs) social responsibility has been realized in the literature, but how to enhance EM-MNEs’ ESG (Environmental, Social, and Governance) performance in the digital age has attracted limited attention. This article fills this gap by investigating whether EM-MNEs can improve ESG performance through digital transformation among Chinese listed companies. We employ text analysis techniques to measure the degree of digital transformation within MNEs and further construct a fixed-effects (FE) model to investigate the positive influence of digital transformation on EM-MNEs’ ESG performance. Results show that digital transformation within MNEs is positively related to ESG performance and such effect is verified for non-state-owned enterprises but not for state-owned enterprises. We suggest that MNEs with more foreign subsidiaries are more prone to be influenced by the positive effect of digital transformation on ESG performance than MNEs with fewer foreign subsidiaries. Moreover, the Belt and Road Initiative is valuable for MNEs to reap ESG benefits from digital transformation. The findings enrich international business studies by adding the digital economy and ESG to the discussion. Moreover, they provide valuable implications for policymakers and business leaders in emerging markets by delineating strategies for enhancing the ESG performance of EM-MNEs.

Is Digital Diplomacy a Good Tool for Resolving International Conflicts

The use of digital platforms in diplomacy has transformed the ways in which diplomacy is conducted. The advancement of communication channels and the widespread use of digital tools have contributed to the expansion of communication, leading to discussions regarding its potential impacts on conflict resolution. However, the profound influence of digital communication on public diplomacy is significant. Meanwhile, digital diplomacy, although advantageous in certain aspects, is limited in its ability to reproduce the intricate dynamics observed in in-person interactions. This paper examines the effectiveness of digital diplomacy in conflict resolution. Using various sources from the disciplines of international relations, business studies, medicine, communication studies and computer science, this paper studies the psychological, geographical, and technological benefits and drawbacks of digital diplomacy. After a thorough comparison of various literature from the aforementioned disciplines, the paper arrives at the conclusion that in order to arrive at effective conflict resolutions, diplomats should take a predominantly traditional approach while using some form of digital diplomacy.

Paradigms in Qualitative IB Research: Trends, Analysis and Recommendations

This paper examines trends, challenges and opportunities in terms of research methodologies in qualitative IB research. In particular, it examines trends for the dominant (positivism/(post)positivism) paradigm versus alternative paradigms (i.e., social constructivism, critical realism and interpretivism) and provides a comparative analysis of data collection and methods. Using mixed methods to collect and analyze data on qualitative articles published in International Business Review, Journal of International Business Studies, Journal of World Business, and Management International Review, we examine trends and differences between the dominant and alternative paradigms and use qualitative content analysis to investigate how alternative paradigm papers are conceptualized and presented. Moreover, we interview authors of non-positivist papers to gain in-depth understanding of the findings. We reveal differences across the paradigms and provide evidence of paradigmatic fit between methods and data collection techniques for the dominant paradigm, but more variation for alternative paradigms. Lastly, we provide prescriptions for IB scholars in terms of methodology diversity and how complex IB phenomena can be pursued vis-a-vis alternative paradigms.

Bulls and bears: inscribing SOEs’ roles into the global climate agenda

Purpose This study aims to explore when and under what conditions state-owned enterprises (SOEs) become important players in orchestrating the global climate action and what their roles are as domestic or international (de)carbonizers. Design/methodology/approach This is a conceptual paper that aims to advance understanding of the role of SOEs in addressing the global climate challenge. The authors build on the institutional theory to capture the importance of home-country climate regulation mechanisms and advance knowledge on the internationalization of SOEs. The authors review the literature on the institutional boundaries that shape the environmental activities of firms at home and abroad and develop the argument on the influence of home country institutions and internationalization on the role of SOEs in the global climate agenda. Findings In this study, the authors elaborate the SOEs’ climate action matrix and offer three propositions based on the fact that SOEs’ environmental strategies are driven by the interests of the state as owner and the scope of SOEs’ internationalization. First, the authors propose that the level of home country’s climate policy ambition explains SOEs’ stance on climate action. Second, scope of internationalization explains SOEs’ stance on climate action. Third, the progressive/increasing involvement of SOEs in climate action enhances the country’s climate stance. Originality/value The authors incorporate the climate argument into international business (IB) studies of SOEs’ internationalization, a novel approach that helps us to advance the knowledge on the complex issue of corporate climate action. The authors argue for a dynamic and reciprocal relationship between home/host countries and SOEs’ climate engagement. In doing this, the authors contribute to the IB research and policy agenda by exploring SOEs’ engagement in advancing the global climate agenda.

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.

UMA ANÁLISE CIENTOMÉTRICA SOBRE INSTITUIÇÕES NA PESQUISA DE NEGÓCIOS INTERNACIONAIS

ABSTRACT This paper explores the co-evolution of international business studies and institutions, employing a scientometric approach and bibliometric review on the application of institutional concepts in international business studies, outlining a research agenda. We compiled a database of 3,520 articles and conducted a scientometric analysis to examine the evolution of the term “institutions” in international business in ABS-ranked journals. Our findings show that (1) over the past two decades, there has been a shift in the use of the term institutions from a political and economic connotation to a sociological perspective to explain how firms adopt strategies, make decisions, and address intra-national problems during the internationalization process; (2) traditional approaches were found to be insufficient in explaining context-dependent events that affect international business; and (3) China has emerged as a critical player in international business studies, which has helped to redirect the focus of institutions from political and economic aspects to the sociological context. Finally, we propose an agenda for future research, highlighting potential pitfalls and remedies.

Antecedents to the disclosure of a stigmatized national identity in cross‑national work settings

International Business (IB) and management studies have neglected giving needed attention to interactions of individuals with stigmatized national identities with overseas clients. This leaves uncertainty about the antecedents that lead these individuals to disclose their national identity to foreign clients or keep it hidden. Drawing on Social Identity Theory (SIT) and Stigma Theory, this comparative case study of two Tunisia-based call centers serving western markets indicates that identity-related choices depend more on skills and experiences individuals possess than on how they relate to each other. The study contributes to both IB and management studies by completing the existing definition of SIT and offering solutions regarding how to address stigma in IB.

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.

The influence of home-country resources and state ownership on subsidiary’s performance: a multilevel perspective

PurposeAlthough emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent resource advantages and mixed state ownership on a subsidiary’s performance. Using the resource-based view, this study aims to investigate how resource advantages from the parent company and state ownership influence the performance of subsidiaries.Design/methodology/approachThis study included a unique data set of 207 subsidiaries from 33 large Brazilian multinationals located in 32 countries from 2000 to 2015. The authors used a hierarchical linear modeling and a multilevel structure based on data at different levels to analyze the influence of home-country parent resource advantages and state ownership on host-country subsidiary’s performance.FindingsThis study illustrates that state ownership can alleviate the resource advantages of parent companies. Evidence is presented, indicating that low and medium degrees of state ownership have a negative impact on the resource advantages of the parent company, consequently reducing the subsidiary’s performance. Moreover, this study highlights that low and medium degrees of state ownership lead to conflicting interests between state ownership and parent resource advantages, resulting in an overall decline in subsidiary performance.Originality/valueThis research contributes new evidence regarding state ownership and resource advantages to the field of international business studies and the domain of Latin American multinational enterprises, Multilatinas. The results suggest that low and medium levels of state ownership diminish the influx of resources from parent companies, thereby restricting the subsidiary’s performance.

Foreign divestment from emerging markets: A systematic literature review, integrative framework, and research agenda

Despite the significance of context in international business studies, existing reviews on foreign divestment have combined findings from developed and emerging markets, obscuring context-specific antecedents, decisions, and outcomes. In this review, we systematically identify and synthesize theoretical and empirical research on foreign divestment from emerging markets based on 60 articles in reputed academic journals. We develop a conceptual framework that integrates the antecedents, decisions, moderating mechanisms, and outcomes of foreign divestment in emerging markets. While firm-level antecedents of foreign divestment are well-researched, external antecedents, decisions, moderating mechanisms, and outcomes are understudied. Additionally, we highlight that foreign divestment from emerging markets has positive and negative consequences for the firm and the host country. Drawing insights from our review, we delve into prospective research agendas, forging connections between contemporary research themes, divestment, and emerging markets. We propose that a multi-level approach to studying the antecedents and outcomes of foreign divestment will enhance our understanding of international business dynamics within an increasingly volatile global environment.

FEATURES OF STRATEGY FORMATION OF UKRAINIAN COMPANIES ON INTERNATIONAL MARKETS

FEATURES OF STRATEGY FORMATION OF UKRAINIAN COMPANIES ON INTERNATIONAL MARKETS

Chinese SMEs’ location choice and political risk: The moderating role of legitimacy

International business studies show that multinational enterprises generally invest in locations with fewer political risks, but that this may not always apply to emerging-market multinational enterprises, due to the specific characteristics of their home countries. In this paper, we examine the impact of political risk on the location decisions of Chinese small and medium-sized enterprises (SMEs), and explore the legitimacy of firms from China in different host countries as a moderator of the relationship between political risk and location choice. Our empirical investigation is based on an original database of 617 foreign direct investment (FDI) location-choice decisions made by 240 Chinese SMEs between 2006 and 2017. The results show that political risk deters Chinese SMEs from choosing certain locations, but political and economic legitimacy positively mitigate this relationship. Combining the political institutions approach and legitimacy-based view of political risk, we contribute novel insights into the role of legitimacy of firms from the same country of origin in emerging market SMEs’ strategic choices of FDI location.

SMEs’ intangible resources and their effects on export performance: a study on Malaysian halal F&B sector

Purpose The growing demand for halal products has attracted small and large companies looking to secure their market share in the lucrative global halal market. However, it is difficult for resource-constrained firms, such as small and medium enterprises (SMEs), to compete internationally. Therefore, drawing from a resource-based view, this paper aims to examine how intangible resources affect the export performance of Malaysian SMEs exporting halal food and beverages (F&B) products. Design/methodology/approach This study used a purposive sampling technique, and respondents were reached out by mail. Out of 517 local SMEs exporting halal-certified F&Bs contacted, 193 firms responded, and only 188 responses were eligible to be used for data analysis. The partial least squares structural equation modelling technique was used to conduct the analysis. The data underwent measurement and structural model evaluation to confirm the hypotheses postulated. Findings Based on the data analysis conducted, it was discovered that intangible resources, namely, international orientation and marketing capability, significantly influence the export performance of Malaysian SMEs exporting halal F&B. However, the influence of cultural intelligence on export performance could not be demonstrated. Originality/value This paper fills the gap of the need for more attention to SMEs in developing countries, especially in the halal industry. This research paper also contributes to international business and halal studies by promoting an understanding of intangible resources as strategic resources for SMEs to create competitive advantages and elevate their export performance in the emerging global halal market.

The EU’s 2020 summit on the COVID recovery fund: leading the divided house to a consensus

Research methodology The writing of this case study was triggered by the numerous media reports in 2020 that talked about the EU nations losing its solidarity. EU being a very appropriate example of economic, monetary and customs union while teaching theories of economic integration and international relations, the post-pandemic approach of EU leadership to rebuild the crisis-ridden member nations seemed an excellent material for developing a teaching case study. The case study was written based on secondary data and published information available. Enough desk research was undertaken to build the characterisation of the protagonists and due diligence done to chronologically report all facts of the case as the story developed. It was decided to build the epilogue into the case study so that the case analysis had enough depth. Case overview/synopsis The case is set in 2020 when the global economy was reeling under the massive impact of a lockdown and the aftermath. The case study examines the model of economic union in international business and the various challenges that governance of an association of nations such as the 27 member EU can throw up. It examines the conflict of interest that can arise among member nations during critical circumstances such as the pandemic and its massive tolls. EU had established itself as a critical international trade player and had already proven their might as a united entity to the world trade partners, given the fact that they were not only a customs union but also a monetary union. In this scenario when the pandemic threw them into the whirlwind of lockdown-induced crisis, the united front of the mighty EU all but crumbled. As the worst-hit economies of Italy and Spain struggled to pull themselves back to normalcy, EU experienced one of its worst solidarity crises. EU’s president Angela Merkel and ally French President Emmanuel Macron with support from the EU Council’s President Charles Michel stepped forward to resurrect the badly hit economies. They viewed this as the best opportunity to bring about a united front by coming together at Brussels for a summit when lockdown eased up in July 2020. It was to be a show of unity to jointly bail out the severely affected member nations by grants rather than loans. The summit, however, snowballed into bitter arguments and open bickering between the wealthy and not-so-wealthy members, and they could not agree upon the issue of debt vs aid. The fact that the EU was an agglomeration of 27 nations, which were far from homogenous in socioeconomic status, not to speak of divided political ideologies, only added dimensions to the dispute. Negotiations repeatedly hit roadblocks. Can the EU leaders lead their bitterly divided house to a consensus? Complexity academic level The case is suitable for graduate and post-graduate levels. Management courses where international business studies, international trade blocs and global leadership are part of curriculum can use the case to teach concepts of “Regional economic integration”, “Economic and Political union” and theories of “International relations” and “Negotiation”. It can also be ideally used in an executive management programme on “Global Leadership” to highlight the complexities of “governance of international associations” and “consensus building amidst diversity”.

Commitment Helps: The Positive Effects of Long-Term Orientation and Family Ownership on Firms’ International Expansion

Abstract This research examines how commitment, long-term orientation, and distinctive family business traits resulting from family ownership affect internationalization by studying two unique and long-lasting firms with family and non-family ownership structures. Drawing upon arguments from international business studies and family business research, we have identified various entrepreneurial motivations and derived a framework that expands our knowledge on how commitment, long-term orientation and specific differences between family and non-family firms impact their international expansion. Our results indicate that family firms generate social capital, experience, and knowledge in an international context to sustain and maximize their advantages better than non-family firms.

K-pop’s internationalization in the product adaptation and the upstream music supply chain in Korea, China, Japan, and the West

ABSTRACT The success of Korean popular music (K-pop) in foreign markets has attracted considerable attention from researchers. Previous studies have highlighted the factors in K-pop’s international success, such as its idol management system, marketing strategies, and digital distribution channels. However, to the best of our knowledge, the contributions of product adaptation and upstream music supply chains to K-pop’s international success have received little attention. To substantiate this argument, we analyse the formula setting of K-pop from the 1990s to the present and the efforts of the founders of entertainment agencies (e.g. SM, JYP, and YG) to model their success in the global market. The argument presented here theoretically contributes to international business studies and has implications for the success of intangible products in foreign markets.

Determinants of Foreign Direct Investment and the Advantages Theory

This study reviews three classic international business theories and some related empirical studies to identify the gaps in the literature and suggest future research directions. In international business studies, most analyses on the determinants of FDI are centered on three concepts of firm-specific, internalization, and location advantages according to the monopolistic advantage theory, internalization theory, and OLI paradigm. These three advantages determine whether a firm will internationalize, how it will enter foreign markets, where it will locate in the host country, and how it will perform in a foreign market. However, These theories are set up with the premise of firm-specific advantages and cannot be used to explain the phenomenon of emerging market multinational enterprises, which have emerged in large numbers in recent years. Simultaneously, these theories, which focus on manufacturing, need to be used to explain the internationalization of the service industry in-depth and with greater relevance.