Geopolitics in international business : challenges and insights

In the current geopolitical context, multinational corporations (MNCs) face a high level of uncertainty and volatility while trying to navigate a changing landscape. This AIB Insights special issue aims to provide the first steps towards articulating novel and actionable insights to guide MNCs as they interact with a rapidly shifting geopolitical environment. Our introductory editorial to the issue first briefly introduces the topic of geopolitics and international business in the current global environment. It then surveys the issue’s five articles. Given current international circumstances, many of the articles revolve around themes of war and peace, but the lessons derived are applicable to any manner of geopolitical risks

Becoming a Multilatina: strategic capabilities as necessary conditions for the internationalization of Latin American firms

Purpose: This study aims to challenge the generic interpretation of Multilatinas as Latin American firms that have been able to internationalize because of highly competitive strategic capabilities. The authors test whether capabilities that international business researchers commonly associate with internationalization are necessary at different stages of the internationalization process to better understand the extent to which emerging market (EM) firms need to develop them. Design/methodology/approach: International business research suggests a positive association between strategic capabilities and firm internalization. However, it remains unclear what specific capabilities are necessary and when they are necessary. These questions are particularly important in the context of the internationalization of firms from emerging economies, such as Latin America. The authors apply necessary condition analysis (NCA) on a sample of Latin American firms at different internationalization stages to test what strategic capabilities represent necessary conditions for becoming a Multilatina. Findings: The findings suggest that only a few strategic capabilities are necessary for Latin American firms to become “Multilatinas”. While entrepreneurial orientation and marketing and sales capabilities represent necessary conditions, EM firms may internationalize even though other capabilities are developed to a lesser extent. The authors reflect on how shifts in local markets and technology drive the emergence of different types of Multilatinas. Research limitations/implications: Measuring strategic capabilities across multiple EM firms implies a risk that firm-specific aspects are not fully captured. While the authors focused on the comparative competitive strength of capabilities and took great care to minimize measurement error, the authors acknowledge possible bias. Also, while NCA does not require a minimum sample size, findings from our sample of firms from four countries may not generalize to the region or other EMs. Originality/value: As a relatively new statistical technique, the use of NCA has spread rapidly. To the best of the authors’ knowledge, the linkage between organizational capabilities and firm internationalization has not been tested from a necessary conditions perspective yet. The reflections on the “Multilatina” concept based on the notion of EM firms as configurations of strategic capabilities inform current debates on EM multinational enterprises

The relationship between consumer ethnocentrism, cosmopolitanism and product country image among younger generation consumers: the moderating role of country development status

Although the differences between developed and developing countries have been extensively studied in the context of globalization strategies, few studies have so far been conducted on the relationship between country development status and the possession by countries of a favorable (or unfavorable) product country image (PCI). Moreover, the results of such studies to date have been inconclusive. The purpose of this paper is to investigate the moderating role of country developmental status on PCI coupled with two antecedents of PCI, namely consumer ethnocentrism and cosmopolitanism. The paper also distinguishes between the PCI of the home and foreign country images of respondents. We test a new model that incorporates these constructs with a sample of 2655 younger generation consumers. The results show that country development status moderates some relationships but does not moderate others. These findings have significant implications for international companies from both developed and developing countries when developing global strategy

MNC Interdependence and Local Embeddedness Influences on Perceptions of Career Benefits from Global Integration

This manuscript examines when global integration is perceived as being beneficial and/or detrimental to employee careers. Study results demonstrate that employees of more interdependent offices generally perceive greater career benefits from global integration, while employees of more locally embedded offices perceive negative career consequences. Hypotheses are guided by a theory of attention focus.© 2001 JIBS. Journal of International Business Studies (2001) 32, 497–507

A Cognitive Map of the International Business Field

Within this paper, we examine the IB field and develop a generic cognitive map in order to better understand the field from an academic research point of view. In doing so, we first categorize the IB literature into research streams. We then examine difficulties encountered when unifying these streams into cognitive maps. Next, we discuss some broad-level, potential maps of the field. After this discussion, we present our more detailed generic map which encompasses some of the major traits of the previous maps along with the research streams identified in the literature review. We conclude by discussing implications of cognitive maps for future research

Generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs): Implications for parent companies

This article develops a model which examines the impact of ten generic differences between equity international joint ventures (EIJVs), international acquisitions (IAs) and international greenfield investments (IGIs) in the pre- and post-incorporation phases of these entities. These differences address the topics of age, equity ownership, financial risk, goal conflict, negotiation time frame, number of owners, ownership type, secrecy, speed of results and trust. It is proposed that some of these differences will have a greater affect on EIJVs, some on IAs and some on IGIs. Additionally, some differences will be more significant in the pre-incorporation phase of a business venture, while others will have a greater impact during the post-incorporation phase. Based upon the generic differences, each of the business venture forms has inherent advantages and disadvantages over the other forms. In general, it is suggested that corporations will increase their chances to be more successful by understanding the generic differences between EIJVs, IAs and IGIs and by coping effectively with these differences. The article concludes with some more specific recommendations for improved EIJV, IA and IGI performance in both the pre- and post-incorporation stages.