Drawing on a sociological approach, this paper examines how the subsidiaries of multinational companies (MNCs) translate equality, diversity, and inclusion (EDI) ideas from their headquarters (HQs). International business (IB) studies emphasize the context-sensitive and socially constructed nature of EDI. Through a single case study of an Italian subsidiary translating EDI ideas from its U.S. HQs,

A growing body of literature highlights that large-scale investments in sensitive contexts can undermine both firm financial performance and peace-positive development. We investigate whether and under what conditions foreign direct investment (FDI) proximate to Indigenous land claims increases or decreases conflict. Drawing on social movement theory’s identification of powerful frames and political

Despite its continued significance and dynamic forms, government ownership is often presented in broad, monolithic terms. Comparing 67,464 government and private acquirer transactions over four decades, we highlight important distinctions in target selection and valuation effects of 129 unique government investment funds (GIFs), including sovereign wealth funds (SWFs), lesser-known subsidiaries called

Equal treatment of foreign and local firms is the cornerstone of international investment law. Yet, why do foreign firms face discrimination in host countries? We analyze this critical but underexplored aspect of the liability of foreignness in two stages. First, drawing on the insights from political science, we argue that the political ideology of the host government along the left-right spectrum

As a disciplinary field, international business (IB) is characterized by language diversity. Too often, however, international business (IB) research regards language diversity as a challenge to be overcome rather than an opportunity to generate new scientific knowledge. Consequently, previous research has primarily focused on the pragmatic, logistical, and methodological hurdles of translating multilingual

Despite increasing interest, research within the context of Africa, particularly in relation to its unique historical dynamics, remains relatively underexplored in international business (IB). ​Our paper explores how colonial-era historical legacies continue to shape the outcomes of present-day private participation infrastructure (PPI) projects in Africa. By analyzing 301 PPI projects across 102 ethnic

Industrial policy, the use of state power to influence the development of industries, has become increasingly influential in international business, yet its firm-level dynamics remain understudied. Through a history-to-theory approach and microhistorical analysis, we investigate how the Finnish shipbuilding industry employed nonmarket strategies (NMS) to influence outward-oriented industrial policies

Digitalization and global disruptions have fundamentally changed how we approach work. Global virtual work has become increasingly widespread in recent years, often replacing or complementing traditional expatriation and international business travel. To advance our understanding of this phenomenon, we systematically reviewed the literature on global virtual work, distinguishing it into three domains:

How should a multinational enterprise (MNE) shape its own agility in response to the environments in which it operates? In this paper we argue that proactive investments in switching-flexibility, e.g., to facilitate future relocations of production assets, can be a powerful tool for handling international business (IB) volatility. If options to invest in future flexibility are exercised strategically

Market-seeking foreign direct investment (FDI) remains central for firms to expand their global presence and seize opportunities abroad. However, existing research often focuses on immediate or near-term drivers related to firms’ market-seeking FDI strategies, and thus neglects the valuable insights a historical perspective can provide. To address this gap, we draw insights from imprinting theory and

Governments worldwide use executive compensation to bond CEOs of state-owned enterprises (SOEs) to political agendas at the expense of private owners. We extend principal–principal (PP) agency theory to delve into the CEO cooption behavior of governments. First, building on the institution-based view, we theorize that political institutions shape the ability of governments to trigger PP conflicts by

Populism is a political phenomenon that attempts to harness existing institutions for populist ends, often leading to negative consequences for businesses. However, can national institutions resist this pressure and mitigate the damage to firms? This paper investigates how populist electoral success influences corporate investment, unraveling the intricate connection between a country’s political institutions

With multinational corporations (MNCs) increasingly taking public stances on sociopolitical issues such as immigration, LGBTQ+ rights, and racism, it is imperative that international business (IB) research keeps pace with normative societal debates. In this paper, we introduce the concept of corporate sociopolitical activism (SPA) to the IB literature and develop a theory on why MNCs consistently or

This essay revisits my 2014 JIBS article about the potential for integrating international business internalization theory with a strategic management capabilities perspective. It recaps the capabilities framework with an emphasis on the learning required of emerging market multinationals and illustrates this with the case of Hyundai Motor Company’s internationalization and growth. It also discusses

Emerging extended reality (XR) technologies, such as augmented reality (AR) and virtual reality (VR), enable global businesses to deliver immersive experiences to customers beyond geographical borders. Despite the opportunities, leveraging XR innovations in foreign markets can present significant challenges. This study investigates whether and under what conditions global businesses experience liability

Climate change and the associated issue of curbing carbon emissions have risen on the agenda of policymakers worldwide. However, global coordination on matters such as harmonized regulation has been subject to significant political frictions, and the large intergovernmental transfers needed to finance the transition of developing economies have proven hard to raise. Recently, there have been considerable

Multinational enterprises (MNEs) can be agents of positive climate action by deploying their vast resources, technology, capital, and collaborative partnerships. They can also promote cross-border mobility of corporate governance and regulatory standards. Allen et al. (J Int Bus Stud, 2024) provide a systematic descriptive analysis to support such an MNE role. In my commentary, I provide a perspective

Despite thorough attention to how context shapes subsidiary behavior, very little IB research has explored the dynamic impact of disruptive changes in historical context on organizational innovations in MNEs. Existing IB theory has robustly theorized the growth of competence-creating subsidiaries from the 1980s to the 2000s. However, our historical research demonstrates that this body of existing theory

Host-country corruption discourages multinational firms’ foreign investments. Nonetheless, multinationals may still want to invest to benefit from local business opportunities. To deal with the challenges of operating in a corrupt host country, they can use experience gained in other corrupt countries. We distinguish between “clean hands” and “dirty hands” learning about corruption – that is to say

Allen et al. (J Int Bus Stud, 2024) present a compelling argument that MNEs can play a role in mitigating climate change by utilizing their vast resources, technological advancements, and global reach. They provide a broad set of suggestions of what MNEs can do to advance sustainability across borders but leave the critical question of why MNEs would engage in this effort less explored. In reflecting

Teece (J Int Bus Stud 45(1):8–37, 2014) identifies two theories of the emergence of multinational enterprises (MNEs)—one that focuses on how MNEs solve transactional difficulties that can emerge in market exchanges and another that focuses on how MNEs facilitate economic value creation that is difficult to realize through market exchanges—and suggests that both theories are important in understanding

A substantial body of literature has shown that political connections have benefited firms domestically, but their cross-border value for multinational enterprises (MNEs) remains understudied. This paper provides novel evidence on the strategic advantages MNEs gain through political ties in host countries and the consequences for domestic firms. Examining foreign companies’ contributions to US political

This study examines reputational penalty spillovers in the context of multinational enterprises’ (MNE) Foreign Corrupt Practices Act (FCPA) violations. We focus on investor reactions to unaccused industry bystander MNEs upon two FCPA regulatory events: investigation and enforcement. Expanding on the notion of categorization, we theorize that unaccused bystander MNEs would experience reputation spillover

Allen et al. (2024a) present an insightful and comprehensive analysis of the role multinationals (MNEs) can play in tackling worldwide climate change challenges. Acknowledging that this role is complex and multifaceted, they pay special attention to the financing of climate change initiatives and the unique advantages MNEs have in this regard. I reflect on Allen et al.’s key arguments and proposals

Dynamic capabilities refer to an organization’s ability to integrate, build, and reconfigure internal and external competencies to address a rapidly developing environment. In his highly influential 2014 JIBS paper, David Teece provides a holistic explanation of how firms can: achieve sustained competitive advantage, adjust and preserve superior performance, and adapt to changing environments. The

Employing a prosocial perspective, this study examines how crowdfunders' prosocial motivation influences their lending decisions on international crowdfunding platforms, addressing the global challenge of poverty alleviation. We posit that prosocially motivated crowdfunders, concerned about economic inequality and others' well-being, are more likely to lend to poorer borrowers to minimize inequality

The global mobility of people has transformed how multinational enterprises (MNEs) manage and benefit from multiple locations. We examine the changing locational boundedness of human capital with globalization and how this has impacted the competitiveness of MNEs. The growing use of quasi-internalization through the active reliance on global value chains and outsourcing has altered the way MNEs spatially

The literature on expatriation typically assumes that cultural and institutional familiarity facilitates expatriate adjustment. This assumption underplays the role of the historical context, especially the influence of painful colonial pasts that often lie beneath such familiarity. In addition, seeking to capture expatriate adjustment as a single measure, such literature does not engage with the differences

We propose and empirically test a product market motive for cross-listing, positing that intensified competition in domestic markets incentivizes firms to cross-list their securities as a strategic response to mitigate the adverse impact of heightened competition at home. Utilizing a hand-collected comprehensive cross-listing dataset covering 56 home countries and 45 cross-listing host countries, along

Building upon the upper echelons theory of organizations as applied to internationalization strategies, we investigate the impact of foreign-origin top management team (TMT) members on their companies’ location choice. We propose that a manager-from-target effect may exist, by which a manager’s knowledge of their country of origin increases the likelihood of choosing that country as a target. We expect

The United Nations Sustainable Development Goals (SDGs) are changing the way multinational enterprises (MNEs) engage with host governments. The SDGs offer MNEs a unique opportunity to build political influence by assisting governments in attaining a host country’s social needs. However, international business scholars have largely remained silent on how MNEs strategize to repurpose ‘doing good’ into

We propose a typology that captures the heterogeneity of international new ventures’ (INVs’) entrepreneurial behavior and their commitment to foreign markets. The typology identifies four types of INVs, highlighting the dynamic interplay between the degree of radicalness of their entrepreneurial behavior and the level of their foreign market commitment. By integrating theories from both international

Notwithstanding their popularity, veto rights are inadequately understood features of international agreements, particularly interfirm exchanges such as international joint ventures (IJVs). As an interesting feature of an IJV’s governance design, they shape decision-making of the most powerful administrative mechanism of an IJV – the IJV board. IJVs’ boards play a crucial part in supporting adaptation

Competition has long been considered a central element of strategy for multinational enterprises in classical foreign direct investment theories. This review evaluates the large and diverse literature on competitive dynamics in international business since Knickerbocker’s (Oligopolistic reaction and the multi-national enterprise, MIT Press, Cambridge, 1973) seminal work on oligopolistic reaction. Specifically

Multinational corporations and their global suppliers are increasingly expected to employ sustainability practices throughout their supply chains. As such, the global scope of corporate sustainability – including the notion of ‘full-chain responsibility’ – is a concern for firms, governments, NGOs, and other stakeholders. We evaluate the state-of-the-art of sustainability research on multinational

Universal banking powers are permissions for a nation’s banks to provide financial services beyond “plain vanilla” banking activities. Some nations restrict banking activities to only services such as loans and deposits, while others permit commercial banks to also engage in investment banking, insurance underwriting, and/or real estate investment activities. Despite the research and policy importance