International Business Studies Research Articles

Restriction of variance interaction effects and their importance for international business research

A recent Journal of International Business Studies editorial on interaction effects within and across levels highlighted the importance of and difficulty associated with justifying and reporting of such interaction effects. The purpose of this editorial is to describe a type of interaction hypothesis that is very common in international business (IB) research: the restricted variance (RV) hypothesis. Specifically, we describe the nature of an RV interaction and its evidentiary requirements. We also offer several IB examples involving interactions that could have been supported with RV arguments. Our hope is that IB researchers can use this paper to bolster their arguments for interaction hypotheses by explaining them in terms of RV.

Corruption in international business

I analyze corruption in international business, presenting a critical assessment of the topic and providing suggestions for future research. I argue that corruption creates a laboratory for expanding international business studies because its illegal nature, the differences in perception about illegality, and the variation in the enforcement of laws against bribery across countries challenge some of the assumptions upon which arguments have been built, i.e., that managers can choose appropriate actions without major legal implications. Hence, I first provide suggestion for how to analyze the topic of corruption in future studies by analyzing the types, measures, causes, consequences, and controls of corruption. I then provide suggestions for how to extend leading theories of the firm by using corruption as a laboratory that challenges some of the assumptions of these theories: extending agency theory by analyzing the existence of unethical agency relationships; extending transaction cost economics by analyzing illegal transaction costs minimization; extending the resource-based view by studying corporate social irresponsibility capability; extending resource dependency by analyzing the ethical power escape; and extending neo-institutional theory by studying illegal legitimacy.

The social responsibility of international business: From ethics and the environment to CSR and sustainable development

This article examines how the international business (IB) literature has addressed social responsibility issues in the past 50 years, highlighting key developments and implications from a historical perspective. Specific attention is paid to the Journal of World Business (JWB), which has covered the whole period and published relevant articles related to these issues, in comparison to the Journal of International Business Studies (JIBS), the other long-standing IB journal. The article outlines that they illustrate different conceptualizations of IB and social responsibility. The 50-year review shows three subthemes: the (green) environment; ethics, rights and responsibilities; poverty and (sustainable) development. These are discussed consecutively, including main contributions and promising areas to further the field.

Corruption in International Business

I analyze corruption in international business, presenting a critical assessment of the topic and providing suggestions for future research. I argue that corruption creates a laboratory for expanding international business studies because its illegal nature, the differences in perception about illegality, and the variation in the enforcement of laws against bribery across countries challenge some of the assumptions upon which arguments have been built, i.e., that managers can choose appropriate actions without major legal implications. Hence, I first provide suggestion for how to analyze the topic of corruption in future studies by analyzing the types, measures, causes, consequences, and controls of corruption. I then provide suggestions for how to extend leading theories of the firm by using corruption as a laboratory that challenges some of the assumptions of these theories: extending agency theory by analyzing the existence of unethical agency relationships; extending transaction cost economics by analyzing illegal transaction costs minimization; extending the resource-based view by studying corporate social irresponsibility capability; extending resource dependency by analyzing the ethical power escape; and extending the neo-institutional theory by studying illegal legitimacy.

Symbiotic Vs Commensal Networking: the Case of Textile SMEs in China and Russia

The purpose of this research is to contribute to the literature addressing the characteristics of small and medium enterprises (SMEs) based on the sample drawn from two emerging economies – China and Russia. The study investigates the intensity and typology of networking activities that SMEs are involved in. The research contributes to the field by empirically investigating, testing, and putting into a unified framework the measurement tools required for identifying symbiotic and commensal types of SMEs’ networking interactions. It also provides an insight into attitudinal, managerial, cultural, and environmental factors that condition these two types of networking and influence SMEs’ willingness to globalize their operations and thus make their networks international. The overriding framework of the study can be stated as developing, validating and testing the symbiotic networking concept relatively to the international business studies. In this way, the study contributes to overcoming the criticism that network theory is not predictive by nature and is not testable.

The scholarly impact of the most cited and award winner articles in International Business

The knowledge and evolution of a discipline are supported on multiple contributions of scholars through their research, but some works have a larger impact on the field. In this paper we examine the most cited articles in international business (IB) research. Methodologically, we identify the six most cited articles published on the top journal for IB studies - Journal of International Business Studies (JIBS) -, which are also those prized with the ‘JIBS decade award’. This award symbolizes their contribution to the field. We assess the impact of the top six articles measuring citations in a sample of other top twelve business / management journals. The procedures of analyses involve counting citations and the co-citations networks of each of the six award winning articles to observe how widespread is their influence into domains that are outside the immediate boundaries of the theme researched in each article.

The effects of linguistic distance and lingua franca proficiency on the stake taken by acquirers in cross-border acquisitions

We study the effects of linguistic distance and lingua franca proficiency on the equity stake taken by acquirers from 67 countries in 59,092 acquisition targets in 69 host countries. We theorize and find that acquirers take lower equity stakes in foreign targets when linguistic distance and differences in lingua franca proficiency between them are high, and take higher stakes when the combined lingua franca proficiency of the parties is high. We also find that linguistic and cultural distance reduce the impact of the combined lingua franca proficiency of the parties on the level of equity taken, which shows that the effective use of a lingua franca is affected by the native tongues and cultures of the parties. Our results clearly demonstrate that governance research and international business studies can benefit from incorporating language into their explanatory models.

Practical Approach to International Business Studies in English at Polish Universities

The subject of this paper is the presentation of BA and MA International Business (IB) studies in English as a new practice on the Polish educational market. The main objective of this paper is to examine the IB studies programmes in English at the University of Gdansk - (UG) and to present the practical approach of their functioning combined with some recommendations. The results show that the UG has established competitive and attractive programmes, although at lower cost levels compared to universities in other countries where the IB studies have longer tradition and good reputation. It is considered that IB studies cement the international position of UG. This article presents both quantitative and qualitative data.

Identity in global organizations from a pragmatist practice perspective: Beyond national culture

In contrast to critical international business (IB) studies’ sole focus on national cultural identity, this study explores multiple identity construction in a global organization in relation to its everyday activities. Drawing on a pragmatist practice approach, we study how identity constructions of actors in the head office and country offices stand in a mutually constitutive relation with their transactional engagements. Our findings highlight how transactions that are key organizational activities trigger both contrasting identity constructions and reflections on the organizational identity. Our study advances our understanding of identity in global organizations by highlighting the multiplicity of non-national culture bound identities and its dispersed power implications. It more broadly contributes to IB by re-conceptualizing the global organization more dynamically as

The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization

Our 2004 Journal of International Business Studies article, “Innovation, Organizational Capabilities, and the Born Global Firm” provided a framework for the phenomenon of early and rapid internationalization among young, entrepreneurial firms. This work can be characterized as an integration of marketing, entrepreneurial, and capability-based thinking around exporting, positioned as the born global exporter. The article also reported findings from a national study of start-up firms that expanded abroad early in their evolution. In the present commentary, we reflect on the contributions of the 2004 article, review the scholarship on the topic over the past decade, and offer suggestions for future inquiry. While the incidence of early internationalization by firms was a novel concept two decades ago, today such firms are found in abundance in many countries. Yet many unresolved research questions remain, including the crucial topic of what happens to “born global” firms as they grow and mature over time. Similarly, the issue of why some firms internationalize early, others late in their evolution, and still others choose to remain local, is a fundamental question for international business scholarship.

Re-thinking research on born globals

Knight and Cavusgil’s Journal of International Business Studies Decade Award-winning article offers numerous contributions to international business research. As one example, it advances cross-disciplinary conversation about entrepreneurial internationalization. A critical review of their study reveals, however, that certain findings require reinterpretation. This commentary does so, discussing the resultant implications and the question of when it is (in)appropriate to use the term “born global”. Parts of Knight and Cavusgil are then used as a foundation to identify research questions at the level of the firm. Finally, points from Cavusgil and Knight’s retrospective are used to argue that we need greater understanding of the individual(s) that are central to the firm’s internationalization behaviour. Suggestions for research are made by drawing on concepts and theory from the entrepreneurship, innovation and psychology literatures.

Editorial: International Entrepreneurial Orientation

In recent decades, both the theory of internationalisation of the firm and/or the theory of international business have developed. Recent developments in international business studies prove that entrepreneurial orientation (EO) emerges as one of the important potential factors contributing to the intensification of the processes of internationalisation of the firm (Etemad, 2015; Gupta & Gupta, 2015). It seems that international entrepreneurship (IE) has been flourishing. The general theory of entrepreneurship indicates that market opportunities are a common and dominant link for all entrepreneurial activities. The entrepreneurship theory refers to the identification or creation opportunities, their evaluation and exploitation. The expansion into new geographic markets is undoubtedly an important market opportunity for growth and development. The internationalisation as a response to the market opportunity takes diverse paths. Based on the in-depth literature search, this issue of our journal aims to determine whether, why and how, in the context of diverse environmental conditions, the pursuit of market opportunities contributes to the increase of internationalisation of the firm (Dimitratos & Plakoyiannaki, 2003; Dimitratos, Voudouris, Plakoyiannaki & Nakos,. 2012; Wach. 2015).

Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship

The results of a content analysis of 1141 articles published in the Journal of International Business Studies over a 24-year time period (1989–2012) reveal that a pervasive tendency exists in the international business (IB) literature towards emphasizing the adverse outcomes associated with cultural differences more than the positive effects. We argue that this imbalance is not an accurate reflection of the reality of cross-cultural contact in IB and that it has hindered our understanding of the processes and conditions that help organizations leverage the benefits of cultural differences in a wide range of contexts. We offer several explanations for the predominance of the negative over the positive in theory and research on culture in IB; and, using a Positive Organizational Scholarship lens couched in the context of March’s (1991) exploration vs exploitation organizational learning framework, highlight a complementary perspective, namely the idea that cultural differences can be an asset, not just a liability in a range of IB contexts. We conclude by offering an integrative framework within which both positive and negative effects of cultural differences can be understood and provide a road map for future research on culture in IB.

Firm-level Factor Versus National Institutional Difference: Ownership Structure in a Foreign Subsidiary of a Japanese Logistics Firm

When a firm undertakes foreign direct investment, it must determine the level of ownership in its foreign subsidiary. This study examines the determinants of the ownership strategy of a Japanese logistics firm from the perspective of international business studies (IB). The study focuses on firm-level factors, including “contributed assets” for shaping firm-specific advantage which a parent firm possesses, “complementary assets” which such firm may need to acquire in a foreign country, and international experience. It also analyzes country-level factors including the institutional difference between a home country and a host country. The study conducts a Tobit regression analysis on the relationship between such factors and the equity ownership level in a foreign subsidiary based on the data-sets of Japanese logistics firms.

Acquisition Entry Strategy of Nordic Multinational Enterprises in China: An Analysis of Key Determinants

ABSTRACTThis article addresses the key determinants of acquisition entry strategy (i.e., the choice between full versus partial acquisition) of Nordic multinational enterprises (MNEs) in China. Although general establishment and entry mode strategies have been a highly researched area in international business studies, acquisitions as a specific entry strategy and its different aspects have been scarcely researched. Therefore, the current study aims to fill the gap in literature by analyzing determinants of acquisition entry strategy based on three important theoretical bases: transaction cost economics, resource-based view, and institutional theory. Our study is one of the first to analyze acquisition entry strategy of MNEs from all four Nordic economies (Denmark, Finland, Norway, and Sweden) in China during 1987 through 2012, and this unique empirical context adds further value to the study findings. The empirical results show that high target country experience, high cultural distance, high level of product diversification, and subsidiary location in institutionally developed and open cities of China were positively associated with choice of full acquisitions by Nordic MNEs. On the other hand, high industry research and development intensity and timing of acquisition led to the choice of partial acquisitions by the investing Nordic MNEs.

Editor's Comments: Developing our Authors

The author, editor of the publication, looks at the developmental approach to peer review of academic articles, described as practices which focus not only on evaluating or identifying weaknesses in an article but on providing guidance to the original author on how the article can be improved and on how he or she can become a better scholar. She contrasts effective developmental reviewing with practices she considers ineffective including ghostwriting the article. Other topics include the role of developmental reviewing in expanding inclusion and diversity in an academic field and its benefits for long-time as well as young scholars.

From the Editors: Explaining interaction effects within and across levels of analysis

Many manuscripts submitted to the Journal of International Business Studies propose an interaction effect in their models in an effort to explain the complexity and contingency of relationships across borders. In this article, we provide guidance on how best to explain the interaction effects theoretically within and across levels of analysis. First, in the case of interactions within the same level of analysis, we suggest that authors provide an explanation of the mechanisms that link the main independent variable to the dependent variable, and then explain how the interaction variable modifies these mechanisms. Moreover, to ensure that the arguments are theoretically complete, we suggest that authors theoretically rule out the potential reverse interaction effect between the main variable and moderating variable. Second, in the case of interactions across levels of analysis, we suggest that authors identify the cross-level nature of the moderating relationships, specify the level of analysis of the main relationship and the nested nature of the cross-level influences, and theoretically explain these cross-level influences. Additionally, we suggest that authors pay particular attention to nesting in order to theoretically rule out reverse interactions.

Heterogeneity and distance. some propositions on how differences across regions, firms and functions affect the role of distance in fdi location decisions

The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. Increasingly, this literature has highlighted the need to consider distance as a multifaceted concept including both spatial and institutional features. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.

The Place of International Human Resource Management in International Business

This article addresses the issue of whether International Human Resource Management (IHRM) is disconnected from other International Business (IB) studies. A content analysis was conducted of 383 articles published in five main international business journals used by IHRM scholars as outlets for their work over a 21 year time span. We classified the articles into two streams of IHRM research: international assignment management and what we term MNC-related research. These streams were found to be given almost equal research attention, developing in tandem across the time period examined. A thematic analysis of articles within each stream facilitated the identification of areas receiving the most research concentration, those with partial attention, and topics yet to be explored. A third stream of articles we designated as non-empirical allowed consideration of theoretical developments within the field. This assessment demonstrates how IHRM is developing a stronger connection with more general IB research.

What Top 25 Most Cited JIBS Articles Can Tell Us About The Firm’s Internationalization Process?

This paper aims to a theoretical approach based on the top 25 most cited articles published in the Journal of International Business Studies (JIBS). Based on a list made by the editorial of JIBS, throughout the Web of Science consult, in early 2009 a list was developed based on the citation numbers in other articles, without self citation that was removed from the final sum. The compilation is presented in this paper in an analytical approach, to explore content of that production list. The 25 list is composed by 26 titles, because equal number of citation in 25th. To improve the results, some articles out of the list and JIBS are cited as complementation.