International Business Literature Research Articles

Remaking the Multinational Corporation: Geographically Dispersed Unbundling and Intangible Assets

Over the past decades, we have observed the emergence of multinational corporations (MNCs) that are increasingly characterized by their high levels of unbundling and geographic dispersion of their activities and by their greater reliance on intangible (vs. tangible) assets. We develop a novel typology of MNCs on the basis of these two characteristics and explore how different types of MNCs have been exposed and are likely to respond to the slowdown in the global economic integration since the 2008 global financial crisis. We argue that the degree to which MNCs have unbundled and geographically dispersed their activities and their reliance on intangible (vs. tangible) assets will affect the risks associated with cross-border transfers of goods and services and with holding overseas assets. We advance the international business (IB) literature and contribute to the global strategy literature by using our novel typology to examine MNCs’ exposure and their likely response to deglobalization pressures.

How far can I trust you? Understanding the social identity perspective of trust development in global virtual teams

PurposeNew technologies, digitalization tools, and the changing world of work have created a virtual, multicultural, and crossborder environment within organizations. Consequently, a growing body of international business literature is focusing on global virtual teams. However, the research so far has focused more on work-based challenges and outcomes of global virtual teams, with limited attention to long-term trust development between members in these teams. This gap is the key focus of the present research.Design/methodology/approachIn this study, data were collected from 19 interviewees of various nationalities who were part of global virtual teams to understand trust development and identity changes. Afterwards, the NVivo software was used, and findings were generated using the “thematic analysis approach.”FindingsThe findings suggested that individuals working in global virtual teams perceived that such a work arrangement had a positive effect on their work performance; however, it had several negative consequences for their social and nonwork lives. Further, while many team members were able to develop swift and cognitive trust with their global virtual team members, the development of affective trust was less common. Also, exposure to multicultural team members, albeit remotely, resulted in most of the individuals embracing (perceived positive) changes in their behaviors and attitudes, thus reflecting a gradual move toward globalization of the workforce values, yet simultaneously creating greater uncertainty and complexity in their identity and work values.Originality/valueUsing the findings, a novel process model, i.e. “the social identity perspective of trust development in global virtual teams” has been proposed, which offers a step-wise guidance regarding how affect-based trust may be developed in global virtual teams in various stages.

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

Where West Meets East: Culture and Preferred Leader Behavior in Poland A and Poland B

Geographically and politically, Poland is a Central European country traditionally divided into two regions located to the west and east of the Vistula River. This division has come to be known as Poland A and Poland B. Despite ongoing debates over the past decade regarding the political and economic disparities between these regions, there has been a notable absence of research exploring their cultural distinctions. To address this gap, this study analyzed the cultural variances between these regions, as well as differences in preferred leadership behaviors among individuals born before and after the transition year of 1989. Through multivariate analyses of variances (MANOVA) tests conducted on a sample of 266 respondents, our research unveiled significant differences in several cultural dimensions and leadership styles, partially confirming our initial hypotheses. We discuss these findings in the context of existing research on Polish culture within cross-cultural and international business literature.

Internationalization ecosystems: a systematic literature review in search of a new theoretical framework

Objectives: This study systematically investigates the concept of internationalization ecosystems (INT-E) to evaluate the depth of existing research and assess the feasibility of a new theoretical framework that incorporates an ecosystemic perspective into contemporary International Business (IB) theories. Methodology: Utilizing a systematic literature review (SLR) and thematic analysis, the study examined 67 articles from Science Direct, Scopus, and Web of Science to understand the dynamics, actors, and characteristics of internationalization ecosystems. Relevance / originality: The concept of INT-E is nascent in the IB literature, with a noticeable lack of an ecosystemic approach to studying internationalization. This study validates existing models while identifying conceptual gaps, suggesting new research directions. Main Results: Significant gaps were identified in the IB literature regarding internationalization ecosystems. However, the study supports a previously proposed conceptual framework that integrates business, entrepreneurial, innovation, and platform ecosystems. Theoretical / methodological contributions: This study contributes theoretically by applying an SLR to the emerging concept of internationalization ecosystems, encouraging further research within IB Theory by focusing on INT-E as an independent entity. Management Contributions: Practically, this study lays the groundwork for a future conceptual framework that can help organizations strategically position themselves within the context of internationalization. While the INT-E framework is still developing, these preliminary insights can enhance internationalization strategies across various dimensions.

How perceived brand localness affects purchase intentions: Examining the role of brand authenticity

ABSTRACT This study aims to examine purchase intentions of local brands among consumers in emerging markets. Specifically, drawing upon signaling theory, this study examines the impact of brand authenticity on consumers’ perceptions of brand localness. Furthermore, the current study examines the consumer demographic as a moderating factor in the relationship between perceived brand localness (PBL) and brand authenticity (BA). Data were collected from a total of 380 Chinese consumers who participated in an online survey through social media platforms. To test the proposed hypotheses, the researchers utilized the PROCESS model in SPSS 26. The findings indicate that, after controlling for consumer ethnocentrism, PBL positively influences purchase intentions for local brands. Furthermore, the results reveal that BA mediates the positive effect of PBL on purchase intentions. Interestingly, the positive relationship between PBL and BA is stronger among older consumers compared to the younger generation. This study contributes to the international business literature by examining the effects of PBL, brand authenticity, and consumer age on purchase intentions towards local brands. This study also offers valuable insights for brand managers to effectively communicate with consumers in emerging markets, particularly by emphasizing the authenticity of their offerings.

Trade policy revisited: how government support initiatives affect international performance in SMEs?

PurposeThis paper aims to understand how government support initiatives can enhance the international performance of small and medium-sized enterprises (SMEs). To address the gap of literature, this paper employed three theoretical lenses to examine both of direct and indirect relationships between two main constructs.Design/methodology/approachThis empirical study is based on data collected from Armenian exporter SMEs. The data collection utilized a random sampling approach, resulting in 138 fully completed questionnaires, yielding a response rate of 28.4%, comparable to previous studies in international business research. This sample includes firms from three main sectors: agriculture, manufacturing and services, reflecting the structure of Armenia's international trade. Relationships were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM).FindingsThe results of this study indicate that government support initiatives lack a direct impact on international performance, while positing instead an indirect connection between the two constructs through strategic capability and institutional pressures.Originality/valueThe results of this study contribute to the international business literature in several ways. First, it surpasses the conventional examination of government support on firm performance by delving into both the direct and indirect relationships between these constructs. Second, it reveals that not all theoretical viewpoints hold equal strategic importance in explaining the internationalization of SMEs. From the practical point of view, findings help policymakers to maximize a country's export capacity by implementing tailored initiatives, considering the unique requirements of SMEs.

A literature review on CEE firms’ outward internationalization failures: definitions, processes, causes and consequences

PurposeThis paper aims to summarize the literature (journal articles and book chapters) on Central and Eastern European (CEE) firms’ outward internationalization failures: definitions and understandings of “failure”, “failed” firms’ internationalization processes, causes of “failed” initial and subsequent foreign activities and consequences of “failed” internationalization.Design/methodology/approachThis systematic-narrative hybrid literature review article focuses on CEE firms’ outward internationalization failures.FindingsThe paper demonstrates that different objective and subjective measures were used for defining and measuring “failure”. Consensus regarding which firms (from slow internationalizers to born globals) can be considered “failed” is lacking. In different studies, internal and external causes of CEE firms’ outward internationalization “failure” and internationalization-related and other consequences of “failed” internationalization also vary considerably. Due to the complexity of the “failure” phenomenon, it is impossible to identify the most characteristic type of “failed” internationalization or offer “optimal” advice for avoiding failures.Originality/valueThe author is not aware of any other literature review articles focused on CEE firms’ outward internationalization failures. This article contributes to the (international) business and (international) entrepreneurship literature focused on failures, exits and institutional and other factors affecting them.

International market, network, and opportunity selection: A systematic review of empirical research, integrative framework, and comprehensive research agenda

International Market Selection (IMS) is a strategic and complex decision by which firms choose the markets in which to be present. Despite the undisputed academic and managerial relevance of IMS, extant reviews do not include the most recent empirical literature, do not consider different perspectives linked to alternative units of analysis and research domains, and ignore important changes in the international business environment. This research aims to carry out a holistic and systematic assessment of recent IMS empirical research, propose an IMS framework, and provide directions for future research. We contribute to the international business and management literature by updating and upgrading our understanding of IMS, by expanding the IMS conceptualization, proposing an integrative conceptual framework, and developing research propositions, and by suggesting a comprehensive, updated, and radically original research agenda.

Future directions of R&D internationalization in international business

PurposeThis paper aims to provide a focused review of international business (IB) literature on research and development (R&D) internationalization, assessing the progress and proposing future research directions.Design/methodology/approachTotal 167 peer-reviewed articles from IB journals (following the ABS list 2021 from 4* to 2) published between 1996 and 2022 are critically reviewed using a science-mapping approach. This paper used Bibliometrix R-package to analyze the retrieved bibliometric data. Additionally, a strategic diagram was developed to comprehend the maturity stage of various R&D internationalization concepts.FindingsMost studies on R&D internationalization are influenced by perspectives from advanced-economy multinational enterprises (AMNEs), while perspectives from emerging-economy multinational enterprises (EMNEs) are underrepresented. Considering the characteristics of emerging economies, firms from these locations might embark on and develop their R&D internationalization strategies differently. Investigating the emerging economy perspectives will enrich the understanding of R&D internationalization strategies for both AMNEs and EMNEs. Additionally, bringing different underutilized theoretical perspectives will help to untangle the anomalies observed in extant literature.Originality/valueThis paper is among the few to scrutinize the IB literature on R&D internationalization by applying a unique combination of bibliometric techniques and a content analysis approach. By complementing existing reviews and providing fresh insights into the phenomenon, it offers a conceptual framework that can be used as a basis for further research on R&D internationalization.

Strangers in a Strange Land: Legitimacy Formation by Polish Multinationals Venturing into Sub-Saharan Africa

Our paper revisits one of the fundamental questions of International Business (IB) scholarship, investigating the ways through which multinational enterprises (MNEs) establish legitimacy when entering a foreign market. We address this question in a novel context of Central and Eastern European (CEE) firms venturing into Sub-Saharan Africa (SSA), employing a multiple case study approach. We investigate the process of legitimacy formation by Polish firms entering SSA for market-seeking reasons. We find that the firms studied use their initial liabilities of foreignness, outsidership, and origin as starting points for pragmatic, moral, and cognitive legitimacy-building by developing narratives that neutralize the distance between themselves and important local stakeholders. Our findings contribute to an understanding of the contingent nature of ‘liabilities’ in IB literature and shed light on the role of narratives in the internationalization process.

Formal institutions and cross-border mergers and acquisitions: A systematic literature review and research agenda

In the last three decades, cross-border mergers and acquisitions have been the most preferred vehicle for unprecedented internationalization and integration of the global economy. This paper synthesizes the empirical research examining the impact of formal institutions related to state effectiveness, corporate governance and investor protection, and inter-country institutional differences on cross-border mergers and acquisitions. Our review summarizes a total of 156 studies across strategy, international business, finance, and economics literature published from 1995–2023. It presents a synthesized framework across each phase of cross-border mergers and acquisitions. In parallel, we identify opportunities for future research that should address the limitations in the existing stream of research and push the boundaries through the novel integration of theoretical lenses.

Isolating the Effect of Social Risk on MNEs’ CSR Reporting: A New Approach Based on China's Belt & Road Initiative

AbstractThis article highlights CSR disclosure as a strategic response of Chinese multinational enterprises (MNEs) to the social risk they face in host countries. Deviating from prior research that aims to directly measure social risk, we offer a new approach to isolate the effect of social risk by leveraging China's Belt & Road Initiative (BRI) as the research context, under which Chinese MNEs are largely protected from political risk in membership countries but are exposed to substantial social risk from local nongovernment stakeholders. Results from difference-in-differences analyses show that after the enactment of the BRI, Chinese MNEs investing in BRI countries significantly increases their likelihood of CSR disclosure than that of their counterparts investing in non-BRI countries. Further, such effects are more pronounced for state-owned MNEs and MNEs in natural resource industries. This research enriches the international business literature on the relationship between political risk and social risk, and that between corporate political actions and corporate social responsibility.

Export manager profile in small and medium-sized enterprises: a gender issue?

ObjetivoExplorar la existencia de perfiles de gestor de exportaciones diferenciados en función del género. El estudio pretende responder a dos preguntas de investigación: (1) ¿difiere el perfil de los gestores de exportación en función del género? En caso afirmativo, (2) ¿en qué atributos directivos/rasgos se observa la diferencia y cuál es la relación entre ellos?Diseño/metodologíaAnálisis empírico cuantitativo sobre una muestra de gestores de exportación de pequeñas y medianas empresas (PYMEs) españolas.ResultadosNuestros resultados apuntan a la existencia de perfiles de gestor de exportación diferenciados por género en términos de atributos objetivos, rasgos personales, estilos de gestión y percepciones relativas a prácticas discriminatorias y estereotipos perjudiciales. Existen dos efectos sustitución en función del género: (1) experiencia profesional versus educación formal y (2) orientación empresarial versus uso de redes relacionales.OriginalidadEl género es una cuestión escasamente estudiada en la literatura sobre gestión internacional a pesar de su relevancia en el contexto institucional internacional. Este artículo aborda el aspecto del género en la gestión de exportaciones.LimitacionesNuestros datos son limitados en términos de ámbito geográfico y tamaño de las empresas; por tanto, no son generalizables sin la realización de nuevos estudios.Implicaciones prácticasNuestras conclusiones pueden ayudar a comprender la relevancia de los equipos de exportación que integran a directivos de diferente género y se benefician de la combinación de diversos atributos directivos, rasgos personales y procesos relacionales en su crecimiento internacional.

Multinational Corporations and Social Innovation in Emerging Markets

The concept of social innovation has garnered increasing attention across various disciplines, driven by a growing recognition of the need to address complex societal challenges. However, despite the thorough examination of traditional innovation forms and their influence on global business practices, the scrutiny of social innovation within the realm of international business (IB) remains relatively nascent. This introduction delineates the scope of this focused issue and emphasizes the critical need to expand research on social innovation within IB, a field dedicated to enhancing social value and engagement among diverse stakeholders. This focused issue explores the catalysts and impacts of multinational corporations' (MNCs’) social innovation endeavours in emerging markets. Departing from the profit-centric focus of conventional innovation studies, social innovation emphasizes the redistribution of knowledge, the encouragement of discovery, and the facilitation of co-creation, thus posing a challenge to the traditional paradigms and logics of innovation theory. This introduction provides a concise review of current social innovation literature in IB, highlights the contributions made by the articles in this focused issue, and concludes by outlining directions for future research in the domain of social innovation in IB.

African Continental Free Trade Area and Regional Trade in ICT and Digital Technologies

This study examines the impact of the African Continental Free Trade Area (AfCFTA) on regional trade in the Information and Communication Technology (ICT) and Digital Technologies (DT) sector across 43 African countries from 2014 to 2021. Employing the augmented gravity model and confidence-level estimations, it highlights AfCFTA's mediating role in enabling ICT&DT trade on the continent. Using hierarchical regression analysis of a panel dataset comprising 5,160 observations, the findings imply that trade openness and productive capacities not only facilitate trade in the ICT&DT sector but also result in positive spillover effects across various economic sectors. This study contributes to the international business literature by refining the application of the gravity model to capture the need for sector-specific analyses to unpack institutional dynamics and dis-enablers of trade. It identifies AfCFTA as a pivotal yet underexplored element in the global trade landscape, highlighting its potential as Africa seeks a more prominent role on the global stage. The research stresses the significance of digital empowerment and policy reforms to maximise the benefits of regional integration under AfCFTA.

Internationalization ecosystems: a framework proposal for the international business theory

Objective: The research proposes an original theoretical framework to explain the nature, uniqueness, and dynamics of the Internationalization Ecosystem (INT-E), streamlining the integration of contemporary International Business (IB) theories into an ecosystemic perspective. Method: A systematic literature review (SLR) was carried out to identify the different types of studies focused on internationalization from an ecosystemic perspective, followed by a thematic analysis, which determined the framework’s key conceptual constructs. Main Results: An INT-E framework was conceptualized, integrating business, entrepreneurial, innovation, and platform ecosystems, extracting pivotal elements to enhance its theoretical and practical dimensions within the realm of IB studies. Relevance/Originality: The INT-E concept is underexplored in IB literature, especially in an ecosystemic context. It is typically seen as part of broader ecosystems like entrepreneurship or digital platforms, but here a new conceptual perspective is proposed, opening avenues for further inquiry. Theoretical / Methodological Contributions: Theoretically, by conceiving the INT-E framework, the research encourages the pursuit of studies on ecosystem integration and replication, which is still incipient in most IB literature. Methodologically, the application of the thematic analysis enhances the qualitative aspect of studies in IB theory. Social / Managerial Contributions: The framework serves as a tool for enhancing internationalization strategies across various dimensions, including export promotion, foreign direct investment (FDI) attraction and ecosystem integration.

Foreign market expansion of ecosystems: a process model

ABSTRACT Ecosystems of actors that need to interact to create value for end users are becoming an integral part of firms’ strategic realities as they reach new markets. However, the phenomenon of ecosystem internationalisation has not been explored in comparison to its practical prevalence. We conceptualise this phenomenon as agent-led structuration on new markets. We build on the structural ecosystem literature and literature on internationalisation challenges to create our recursive process model of ecosystem creation on foreign markets. Creating ecosystems on foreign markets necessitates new ecosystem structures that are adjusted to value propositions by orchestrators through interaction with foreign market actors. The model explains how ecosystem orchestrators drive the international expansion of ecosystems through blueprinting and aligning mechanisms and how these mechanisms help manage liabilities of foreignness. The model accounts for the agency of involved actors, and with the help of the bottleneck concept bridges international business and ecosystem literatures.

Internationalization of Chinese Manufacturing Firms: A Perspective from the Uppsala Model

Enhancing firm performance in the turbulent international situation has become an important issue in firm evolution. There has been a large amount of research interest in the rapid development of emerging international firms, but the relevant empirical studies are still limited. The purpose of this study is to investigate three factors that impact firm performance, utilizing the Uppsala model as a main theoretical foundation. Based on empirical analysis of 332 medium and large Chinese manufacturing international firms, this study finds that the degree of internationalization, knowledge development, and commitment processes have positively impact firm performance. This finding contributes to the international business literature's understanding of firm development in emerging markets and enhances the generalizability of the Uppsala model.

CEO childhood trauma experience and firm internationalization

Purpose The purpose of this study is to examine how the childhood trauma experiences of CEOs influence firms’ internationalization. Design/methodology/approach The research used a difference-in-difference method with constructing a treatment group whose chief executive officer (CEO) experienced the great famine in China between the ages of 7 and 11, and a control group whose CEO was born within three years after 1961. Findings The study reveals a significant inverse correlation between CEOs’ childhood trauma experiences and firm internationalization. However, this correlation is weaker in the case of state-owned enterprises and firms led by CEOs with overseas work experience. Originality/value To the best of the authors’ knowledge, this study is the first to extend the theoretical framework to elucidate firms’ internationalization by introducing childhood trauma theory into the field of international business literature. Second, the authors link the literature on the effect of CEO explicit traits and psychological traits on firm internationalization by exploring how CEOs’ childhood trauma experience shapes their risk aversion, which, in turn, influences firm internationalization. Third, the authors address the call for examining the interplay of CEO life experiences by scrutinizing the moderating effect of CEO overseas work experience on the association between CEOs’ childhood trauma exposure and firm internationalization.