Pub Date : 2026-04-01Epub Date: 2026-01-05DOI: 10.1016/j.ibusrev.2026.102557
Shufeng Xiao , Byung Il Park , Zaheer Khan
Why do some firms outperform others in technological innovation? This study addresses this question by developing a novel theoretical framework that integrates the extended resource-based view (ERBV) with the organizational capability development perspective. Specifically, we examine how two key attributes of international networks, breadth and depth, influence the development of distinct organizational capabilities: ordinary and dynamic. Using survey data from 198 Chinese manufacturing firms, we find that network breadth significantly contributes to both ordinary and dynamic capabilities, supporting incremental and radical innovations. In contrast, network depth primarily strengthens ordinary capabilities, facilitating incremental innovation but offering limited support for radical innovation. These findings suggest that network breadth is crucial for accessing diverse knowledge and resources to develop both capability types, whereas network depth plays a more specialized role in reinforcing existing capabilities. This study advances theoretical understanding and provides practical guidance for managers seeking to leverage international networks to develop both incremental and radical innovation by elucidating the relationships among international network configuration, capability development, and innovation outcomes, particularly within the resource-constrained and institutionally challenging context of an emerging economy.
{"title":"Managing resource constraints through international networks: Capability development and incremental and radical innovation in emerging markets","authors":"Shufeng Xiao , Byung Il Park , Zaheer Khan","doi":"10.1016/j.ibusrev.2026.102557","DOIUrl":"10.1016/j.ibusrev.2026.102557","url":null,"abstract":"<div><div>Why do some firms outperform others in technological innovation? This study addresses this question by developing a novel theoretical framework that integrates the extended resource-based view (ERBV) with the organizational capability development perspective. Specifically, we examine how two key attributes of international networks, breadth and depth, influence the development of distinct organizational capabilities: ordinary and dynamic. Using survey data from 198 Chinese manufacturing firms, we find that network breadth significantly contributes to both ordinary and dynamic capabilities, supporting incremental and radical innovations. In contrast, network depth primarily strengthens ordinary capabilities, facilitating incremental innovation but offering limited support for radical innovation. These findings suggest that network breadth is crucial for accessing diverse knowledge and resources to develop both capability types, whereas network depth plays a more specialized role in reinforcing existing capabilities. This study advances theoretical understanding and provides practical guidance for managers seeking to leverage international networks to develop both incremental and radical innovation by elucidating the relationships among international network configuration, capability development, and innovation outcomes, particularly within the resource-constrained and institutionally challenging context of an emerging economy.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 2","pages":"Article 102557"},"PeriodicalIF":6.1,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145926042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-05DOI: 10.1016/j.ibusrev.2025.102556
Arindam Mondal , Somnath Lahiri
This study investigates whether and how business group (BG)-affiliation impacts multinationality of family firms. Drawing on the resource-based and socioemotional wealth (SEW) perspectives, we theorize that BG-affiliated family firms conduct greater multinationality compared to standalone family firms. We further theorize that affiliated firms, compared to their standalone counterparts, exhibit greater preference for developing economies to locate their wholly-owned subsidiaries. In addition, we argue that within affiliated firms those which belong to BGs that possess higher professionalization demonstrate preference for developed economy locations compared to the affiliates whose BGs possess lower professionalization. Finally, we theorize that similar preference for developed economy locations is exhibited by affiliated firms whose BGs possess higher internationalization compared to the affiliates whose BGs possess lower internationalization. Our analysis of a sample of Indian family firms provides support to our hypotheses and illustrates that heterogeneity at two levels (firm and BG) should be considered to fully comprehend family firm’s multinationality.
{"title":"Multinationality of family firms: The impact of business group affiliation","authors":"Arindam Mondal , Somnath Lahiri","doi":"10.1016/j.ibusrev.2025.102556","DOIUrl":"10.1016/j.ibusrev.2025.102556","url":null,"abstract":"<div><div>This study investigates whether and how business group (BG)-affiliation impacts multinationality of family firms. Drawing on the resource-based and socioemotional wealth (SEW) perspectives, we theorize that BG-affiliated family firms conduct greater multinationality compared to standalone family firms. We further theorize that affiliated firms, compared to their standalone counterparts, exhibit greater preference for developing economies to locate their wholly-owned subsidiaries. In addition, we argue that within affiliated firms those which belong to BGs that possess higher professionalization demonstrate preference for developed economy locations compared to the affiliates whose BGs possess lower professionalization. Finally, we theorize that similar preference for developed economy locations is exhibited by affiliated firms whose BGs possess higher internationalization compared to the affiliates whose BGs possess lower internationalization. Our analysis of a sample of Indian family firms provides support to our hypotheses and illustrates that heterogeneity at two levels (firm and BG) should be considered to fully comprehend family firm’s multinationality.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 2","pages":"Article 102556"},"PeriodicalIF":6.1,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145926109","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-04-01Epub Date: 2026-01-14DOI: 10.1016/j.ibusrev.2026.102561
Ha Nguyen, Vikrant Shirodkar
Multinational enterprises (MNEs) often develop an extensive network of foreign subsidiaries within a host country. However, due to the limited attention capacity of managers at MNE headquarters (HQ), the degree to which each subsidiary in such a host market receives positive attention from the HQ is constrained. Our paper adopts the attention-based view to argue that greater subsidiary density of a focal MNE in a host market increases subsidiary mortality propensities. Additionally, we argue that this effect is moderated by important attention regulators such as the subsidiary's relatedness to the MNE HQ, the order of the subsidiary’s entry into the host market, and the subsidiary’s establishment mode. We test our hypotheses using a sample of 1718 foreign subsidiaries of 255 Finnish MNEs operating in 70 host countries. Overall, our paper contributes to the literature by conceptualising MNE-subsidiary density as an attention-based construct and studying its impact on subsidiary mortality.
{"title":"Multinational enterprises’ subsidiary density and subsidiary survival: An attention-based perspective","authors":"Ha Nguyen, Vikrant Shirodkar","doi":"10.1016/j.ibusrev.2026.102561","DOIUrl":"10.1016/j.ibusrev.2026.102561","url":null,"abstract":"<div><div>Multinational enterprises (MNEs) often develop an extensive network of foreign subsidiaries within a host country. However, due to the limited attention capacity of managers at MNE headquarters (HQ), the degree to which each subsidiary in such a host market receives positive attention from the HQ is constrained. Our paper adopts the attention-based view to argue that greater subsidiary density of a focal MNE in a host market increases subsidiary mortality propensities. Additionally, we argue that this effect is moderated by important attention regulators such as the subsidiary's relatedness to the MNE HQ, the order of the subsidiary’s entry into the host market, and the subsidiary’s establishment mode. We test our hypotheses using a sample of 1718 foreign subsidiaries of 255 Finnish MNEs operating in 70 host countries. Overall, our paper contributes to the literature by conceptualising MNE-subsidiary density as an attention-based construct and studying its impact on subsidiary mortality.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 2","pages":"Article 102561"},"PeriodicalIF":6.1,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145977329","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2025-12-12DOI: 10.1016/j.ibusrev.2025.102538
Farok J. Contractor , John Cantwell , Gary Gereffi , Karl P. Sauvant
Since the mid-2010s, multinational enterprises (MNEs) have operated in an increasingly turbulent international business (IB) environment characterized by geoplitical frictions, trade protectionism, intensified FDI screening, and assertive techno-nationalist industrial policies. These developments mark a shift from the efficiency-driven globalization of 1980–2016 toward strategies emphasizing supply chain resilience and local responsiveness. This paper contrasts the relative stability of the neoliberal era with today’s fragmented regulatory landscape, tracing the transition from multilateralism to renewed economic nationalism. It examines how evolving industrial policies affect MNEs from advanced and emerging economies. The paper identifies adaptive responses—including reconfiguring global value chains, increasing inventories, diversifying suppliers, engaging in non-market strategies, and enhancing digital transparency. It concludes by outlining alternative trajectories for globalization: a bifurcation into hegemon-led blocs or a revival of multilateral cooperation grounded in comparative advantage, knowledge diffusion, and the enduring mutual gains from cross-border investment.
{"title":"The shift to a more turbulent IB environment, and how MNEs respond to this shift","authors":"Farok J. Contractor , John Cantwell , Gary Gereffi , Karl P. Sauvant","doi":"10.1016/j.ibusrev.2025.102538","DOIUrl":"10.1016/j.ibusrev.2025.102538","url":null,"abstract":"<div><div>Since the mid-2010s, multinational enterprises (MNEs) have operated in an increasingly turbulent international business (IB) environment characterized by geoplitical frictions, trade protectionism, intensified FDI screening, and assertive techno-nationalist industrial policies. These developments mark a shift from the efficiency-driven globalization of 1980–2016 toward strategies emphasizing supply chain resilience and local responsiveness. This paper contrasts the relative stability of the neoliberal era with today’s fragmented regulatory landscape, tracing the transition from multilateralism to renewed economic nationalism. It examines how evolving industrial policies affect MNEs from advanced and emerging economies. The paper identifies adaptive responses—including reconfiguring global value chains, increasing inventories, diversifying suppliers, engaging in non-market strategies, and enhancing digital transparency. It concludes by outlining alternative trajectories for globalization: a bifurcation into hegemon-led blocs or a revival of multilateral cooperation grounded in comparative advantage, knowledge diffusion, and the enduring mutual gains from cross-border investment.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 2","pages":"Article 102538"},"PeriodicalIF":6.1,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145738523","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2025-12-06DOI: 10.1016/j.ibusrev.2025.102527
Young Un Kim , Salih Zeki Ozdemir
Although board independence and gender diversity are recognized as globally accepted good governance norms, firms’ conformance to these norms varies widely within and across countries. This variation suggests complex underlying factors. Drawing on actor-centered institutionalism, we explore how international business actors interact to shape firms’ decisions to conform to both, either one, or neither of the governance norms. Adopting a configurational approach, we analyze 4257 firms across 38 countries in 2020. Our results uncover heterogeneous combinations of institutional and firm-level factors that drive varied governance outcomes. Our findings emphasize the principle of equifinality and asymmetry, demonstrating that multiple configurations can lead to similar governance outcomes and factors affecting conformance are not necessarily the same factors affecting non-conformance. These findings further highlight the power dynamics of multiple actors co-existing at institutional and firm levels, which simultaneously affect the willingness and ability of firms to conform. This study contributes to the comparative governance literature by illustrating how shareholders, labor, state, and society-at-large actors interact to shape diverse configurations of conformance responses across and within institutions. Moreover, we stress the agentic roles of firms and their owners (i.e., family and state ownership) in conjunction with other institutional actors, emphasizing their interconnected influence on governance practices within broader international business trends. Furthermore, our results challenge the notion of a universal governance model by showing the potential trade-off between the two good governance norms through a joint analysis. Finally, we contribute to discussions on governance norm diffusion by demonstrating that the adoption of good governance practices is an ongoing process. Not all firms are influenced in the same way by global pressures.
{"title":"Exploring joint conformance to board independence and board gender diversity norms: An actor-centered configurational approach","authors":"Young Un Kim , Salih Zeki Ozdemir","doi":"10.1016/j.ibusrev.2025.102527","DOIUrl":"10.1016/j.ibusrev.2025.102527","url":null,"abstract":"<div><div>Although board independence and gender diversity are recognized as globally accepted good governance norms, firms’ conformance to these norms varies widely within and across countries. This variation suggests complex underlying factors. Drawing on actor-centered institutionalism, we explore how international business actors interact to shape firms’ decisions to conform to both, either one, or neither of the governance norms. Adopting a configurational approach, we analyze 4257 firms across 38 countries in 2020. Our results uncover heterogeneous combinations of institutional and firm-level factors that drive varied governance outcomes. Our findings emphasize the principle of equifinality and asymmetry, demonstrating that multiple configurations can lead to similar governance outcomes and factors affecting conformance are not necessarily the same factors affecting non-conformance. These findings further highlight the power dynamics of multiple actors co-existing at institutional and firm levels, which simultaneously affect the willingness and ability of firms to conform. This study contributes to the comparative governance literature by illustrating how shareholders, labor, state, and society-at-large actors interact to shape diverse configurations of conformance responses across and within institutions. Moreover, we stress the agentic roles of firms and their owners (i.e., family and state ownership) in conjunction with other institutional actors, emphasizing their interconnected influence on governance practices within broader international business trends. Furthermore, our results challenge the notion of a universal governance model by showing the potential trade-off between the two good governance norms through a joint analysis. Finally, we contribute to discussions on governance norm diffusion by demonstrating that the adoption of good governance practices is an ongoing process. Not all firms are influenced in the same way by global pressures.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 2","pages":"Article 102527"},"PeriodicalIF":6.1,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145685867","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-02-01Epub Date: 2025-11-28DOI: 10.1016/j.ibusrev.2025.102534
Charles Mbalyohere , Thomas Lawton
We examine how multinational enterprises (MNEs) employ contestable nonmarket strategies as political sense-making mechanisms to navigate institutionally fragmented environments in sub-Saharan Africa. Our contribution reconceptualizes sensemaking as a dynamic, political capability that enables proactive adaptation rather than mere cognitive interpretation. Through qualitative analysis of MNEs operating across multiple African markets, we demonstrate how firms strategically leverage duplicity, risk tolerance, social engagement, home support, and anticipatory embeddedness strategies to navigate institutional ambiguity. We integrate sensemaking with the dynamic capabilities framework, showing how sensing, seizing, and reconfiguring operate not only in market-facing strategies but in politically charged institutional arenas. Our findings illustrate how oscillatory and seemingly contradictory behaviors, such as simultaneous rule compliance and circumvention, serve as deliberate tools of strategic adaptation. We offer a novel theorization of how MNEs leverage ambiguity to build a competitive advantage in complex host environments.
{"title":"Strategic sensemaking as dynamic capability: How MNEs navigate institutional challenges in Sub-Saharan Africa","authors":"Charles Mbalyohere , Thomas Lawton","doi":"10.1016/j.ibusrev.2025.102534","DOIUrl":"10.1016/j.ibusrev.2025.102534","url":null,"abstract":"<div><div>We examine how multinational enterprises (MNEs) employ contestable nonmarket strategies as political sense-making mechanisms to navigate institutionally fragmented environments in sub-Saharan Africa. Our contribution reconceptualizes sensemaking as a dynamic, political capability that enables proactive adaptation rather than mere cognitive interpretation. Through qualitative analysis of MNEs operating across multiple African markets, we demonstrate how firms strategically leverage duplicity, risk tolerance, social engagement, home support, and anticipatory embeddedness strategies to navigate institutional ambiguity. We integrate sensemaking with the dynamic capabilities framework, showing how sensing, seizing, and reconfiguring operate not only in market-facing strategies but in politically charged institutional arenas. Our findings illustrate how oscillatory and seemingly contradictory behaviors, such as simultaneous rule compliance and circumvention, serve as deliberate tools of strategic adaptation. We offer a novel theorization of how MNEs leverage ambiguity to build a competitive advantage in complex host environments.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102534"},"PeriodicalIF":6.1,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145623139","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-02-01Epub Date: 2025-11-17DOI: 10.1016/j.ibusrev.2025.102530
Chengcheng Miao , Chris Brewster
Drawing on institutional isomorphism and Bourdieu’s concept of capital, this ethnographic study provides a comprehensive examination of how institutional pressures interact with individual capital (linguistic, cultural and social) to shape expatriates’ behaviours in dealing with local petty corruption practices. We find that coercive isomorphism is often intensified by a lack of local linguistic capital, mimetic isomorphism is reinforced by uncertainty in a foreign environment, and normative isomorphism is shaped by norms and expectations originating from both the host and home countries, rather than being solely rooted in the local environment. Our findings highlight the critical role of individual capital as a moderator of institutional responses. By bridging macro-level neo-institutional theory and micro-level practices, this study deepens our understanding of how expatriates’ behaviour is shaped by both broader institutional environments and the personal resources they bring to their host country.
{"title":"Exploring one of the darker sides of expatriation: Chinese expatriates' experiences with petty corruption in Tanzania","authors":"Chengcheng Miao , Chris Brewster","doi":"10.1016/j.ibusrev.2025.102530","DOIUrl":"10.1016/j.ibusrev.2025.102530","url":null,"abstract":"<div><div>Drawing on institutional isomorphism and Bourdieu’s concept of capital, this ethnographic study provides a comprehensive examination of how institutional pressures interact with individual capital (linguistic, cultural and social) to shape expatriates’ behaviours in dealing with local petty corruption practices. We find that coercive isomorphism is often intensified by a lack of local linguistic capital, mimetic isomorphism is reinforced by uncertainty in a foreign environment, and normative isomorphism is shaped by norms and expectations originating from both the host and home countries, rather than being solely rooted in the local environment. Our findings highlight the critical role of individual capital as a moderator of institutional responses. By bridging macro-level neo-institutional theory and micro-level practices, this study deepens our understanding of how expatriates’ behaviour is shaped by both broader institutional environments and the personal resources they bring to their host country.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102530"},"PeriodicalIF":6.1,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145579258","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-02-01Epub Date: 2025-11-07DOI: 10.1016/j.ibusrev.2025.102526
Vincent E. Kunst , Sjoerd Beugelsdijk
We use comparative institutional theory to explore the predictive power of agency theory against the background of the emerging multipolar world characterized by an increasing distance between institutional systems. Originally developed in the liberal market economy context, agency theory presents managerial ownership and board independence as critical managerial practices to mitigate agency problems. Our analysis at the level of institutional systems of 26,945 firms across 39 countries over a period of 14 years (2009–2022) shows that the predictive power of agency theory is reduced when firms operate in institutional systems at a larger distance from the liberal market economy model. These results are corroborated using propensity score matching methods and cross-validated with an alternative database. We integrate institutional distance research with the theory on comparative institutional systems that have so far mostly operated in silos. The broader implication of our analysis is that the emergence of the multipolar world affects the universal applicability of agency theory and makes it more context-specific. The fundamental idea that the predictive power of our theories is affected by the current global economic developments is an aspect that has so far been overlooked in the de-globalization discussion. We discuss implications for international business scholarship.
{"title":"The predictive power of agency theory in a multipolar world","authors":"Vincent E. Kunst , Sjoerd Beugelsdijk","doi":"10.1016/j.ibusrev.2025.102526","DOIUrl":"10.1016/j.ibusrev.2025.102526","url":null,"abstract":"<div><div>We use comparative institutional theory to explore the predictive power of agency theory against the background of the emerging multipolar world characterized by an increasing distance between institutional systems. Originally developed in the liberal market economy context, agency theory presents managerial ownership and board independence as critical managerial practices to mitigate agency problems. Our analysis at the level of institutional systems of 26,945 firms across 39 countries over a period of 14 years (2009–2022) shows that the predictive power of agency theory is reduced when firms operate in institutional systems at a larger distance from the liberal market economy model. These results are corroborated using propensity score matching methods and cross-validated with an alternative database. We integrate institutional distance research with the theory on comparative institutional systems that have so far mostly operated in silos. The broader implication of our analysis is that the emergence of the multipolar world affects the universal applicability of agency theory and makes it more context-specific. The fundamental idea that the predictive power of our theories is affected by the current global economic developments is an aspect that has so far been overlooked in the de-globalization discussion. We discuss implications for international business scholarship.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102526"},"PeriodicalIF":6.1,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145474068","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-02-01Epub Date: 2025-11-25DOI: 10.1016/j.ibusrev.2025.102525
Der-Ting Huang
International economic agreements—classified as multilateral, regional, and bilateral—mitigate institutional barriers that firms face when engaging in cross-border business. Such agreements facilitate cross-border business by providing safeguards, but variations in their safeguarding quality are evident. Building on new institutional economics and regionalization literature, this paper brings the regional dimension to institutional analysis, suggesting that regional agreements are higher quality than other types. I theorize that regional economic agreements involve greater safeguarding advantages for enhancing trade and FDI, in comparison to multilateral and bilateral economic agreements. I further propose that their relative strengths are more pronounced in countries with low institutional quality than in those with high institutional quality. Using panel data on trade and FDI relationships in Asia from 2000 to 2016, the results corroborate the hypotheses, highlighting that regional agreements define regional borders that matter to foreign transactions, which contributes to research on the nexus between regions and international business.
{"title":"Why regional economic agreements matter more than multilateral and bilateral agreements: Evidence from trade and investment in East Asia","authors":"Der-Ting Huang","doi":"10.1016/j.ibusrev.2025.102525","DOIUrl":"10.1016/j.ibusrev.2025.102525","url":null,"abstract":"<div><div>International economic agreements—classified as multilateral, regional, and bilateral—mitigate institutional barriers that firms face when engaging in cross-border business. Such agreements facilitate cross-border business by providing safeguards, but variations in their safeguarding quality are evident. Building on new institutional economics and regionalization literature, this paper brings the regional dimension to institutional analysis, suggesting that regional agreements are higher quality than other types. I theorize that regional economic agreements involve greater safeguarding advantages for enhancing trade and FDI, in comparison to multilateral and bilateral economic agreements. I further propose that their relative strengths are more pronounced in countries with low institutional quality than in those with high institutional quality. Using panel data on trade and FDI relationships in Asia from 2000 to 2016, the results corroborate the hypotheses, highlighting that regional agreements define regional borders that matter to foreign transactions, which contributes to research on the nexus between regions and international business.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102525"},"PeriodicalIF":6.1,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145623023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-02-01Epub Date: 2025-09-11DOI: 10.1016/j.ibusrev.2025.102507
Ludan Wu , Dylan Sutherland , John R. Anderson
Do emerging market (E)MNEs, compared with developed market (D)MNEs, engage in more post-acquisition hiring when acquiring foreign high-tech firms? Drawing on the concepts of ‘home base augmentation’ and ‘catching up by hiring’ and extending them to high-tech cross-border M&As, we argue that EMNEs use post-acquisition hiring to access knowledge and embed themselves in world leading innovation networks to build innovation related dynamic capabilities. Using a large, matched sample of cross-border acquisitions, we find that EMNE acquisitions are associated with significantly higher post-acquisition employment growth than DMNE acquisitions. This effect is especially strong when targets are located in developed market technological clusters. These findings suggest that employment growth is not merely a by-product of acquisition, but a deliberate strategy through which EMNEs develop technological capabilities.
{"title":"International high-tech cross-border acquisitions and long-term employment growth in foreign target firms: Are EMNEs catching up by hiring in foreign technological clusters?","authors":"Ludan Wu , Dylan Sutherland , John R. Anderson","doi":"10.1016/j.ibusrev.2025.102507","DOIUrl":"10.1016/j.ibusrev.2025.102507","url":null,"abstract":"<div><div>Do emerging market (E)MNEs, compared with developed market (D)MNEs, engage in more post-acquisition hiring when acquiring foreign high-tech firms? Drawing on the concepts of ‘home base augmentation’ and ‘catching up by hiring’ and extending them to high-tech cross-border M&As, we argue that EMNEs use post-acquisition hiring to access knowledge and embed themselves in world leading innovation networks to build innovation related dynamic capabilities. Using a large, matched sample of cross-border acquisitions, we find that EMNE acquisitions are associated with significantly higher post-acquisition employment growth than DMNE acquisitions. This effect is especially strong when targets are located in developed market technological clusters. These findings suggest that employment growth is not merely a by-product of acquisition, but a deliberate strategy through which EMNEs develop technological capabilities.</div></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":"35 1","pages":"Article 102507"},"PeriodicalIF":6.1,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145049119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}