Purpose This study comments on how the fragmentation of liberal globalisation and the resurgence of geopolitical rivalry, industrial policy and economic security concerns may be reshaping the organisation of international business. It argues that these developments may increase the importance of state capabilities, industrial ecosystems and politically embedded forms of internationalisation, making aspects of Chinese MNE expansion increasingly relevant to understanding the future evolution of international business. Design/methodology/approach This study adopts a conceptual and historical approach drawing upon international business, economic history, development studies and contemporary geopolitical scholarship. Itsynthesises historical evidence on politically embedded commerce with recent developments in Chinese outward investment to develop a forward-looking perspective on the future organisation of international business. Findings This study argues the highly liberalised international economy that shaped much contemporary IB theory may prove historically exceptional rather than normal. As geopolitical fragmentation increases the importance of strategic coordination, industrial policy and economic security, organisational arrangements that embed firms within broader industrial and political systems may become increasingly advantageous. Chinese MNEs, overseas economic zones and industrial ecosystems may therefore represent early organisational forms adapted to a more fragmented and politically contested international economy. It further suggests that states may accumulate capabilities through learning processes analogous to those described in the dynamic capabilities’ literature, enabling them to coordinate industrial transformation and internationalisation under conditions of uncertainty. Research limitations/implications This paper is conceptual and interpretive rather than empirical. Future research should examine how state capabilities emerge and evolve, how industrial ecosystems generate international competitive advantages and how new organisational forms such as overseas economic zones influence the organisation of international business under conditions of geopolitical fragmentation. Practical implications The analysis suggests that managers and policymakers may need to reconsider assumptions developed during the liberal globalisation era. As geopolitical rivalry and industrial policy increasingly shape international business, successful internationalisation may depend not only on firm-specific capabilities but also on access to supportive industrial ecosystems and effective relationships with governments and other institutional actors. Policymakers seeking to attract investment may likewise need to focus on developing broader industrial ecosystems, supply-chain capabilities and strategic coordination mechanisms rather than relying solely on market incentives. Understanding how firms and states jointly manage uncertainty may therefore become increasingly important for international competitiveness. Social implications The growing importance of industrial policy, economic security and state-supported internationalisation has implications that extend beyond firms and markets. As governments play a more active role in shaping industrial development and technological competition, decisions regarding investment, innovation, infrastructure and supply-chain organisation may increasingly influence employment opportunities, regional development and economic resilience. The analysis highlights the broader societal consequences of geopolitical fragmentation and suggests that debates concerning the organisation of international business are also debates about how economic power, technological capabilities and development opportunities are distributed across countries and regions within the global economy. Originality/value The study contributes to IB scholarship by extending analysis beyond the MNE as an isolated unit of analysis and highlighting the growing importance of state capabilities, industrial ecosystems and politically embedded organisational forms. It proposes that contemporary Chinese internationalisation may provide an important window into the future evolution of international business in an increasingly fragmented global economy.
Purpose The aim of this study is to, from a critical perspective of international relations (IRs), explain the seemingly puzzling warm receptivity to Chinese investment in Hungary compared to many fellow European countries. In so doing, the study illustrates how to “endogenize” IR factors in International Business (IB) research. Design/methodology/approach The study serves to provide a fresh perspective, particularly regarding “endogenizing” IRs factors in the study of receptivity to foreign direct investment (FDI). It focuses on receptivity to Chinese investment in Hungary and draws upon qualitative interviews with senior government officials, advisors, academics and business representatives who are directly involved in or have profound knowledge about Chinese investment. Findings The study identifies that, situating in a semi-periphery country, policy elites under the Orbán Government in Hungary had a unique assessment of opportunities and risks associated with Chinese investment. In contrast to the tendency in the core countries to perceive Chinese investment as presenting high security, economic and political risks, the Orbán Government were not keen for security framing as they did not see much strategic assets to protect; neither did they have much political concern about Chinese FDI. Instead, their focus seemed to be on reaping the economic benefits of FDI and reducing its dependence on the German economy and (traditional) automotive industry. Practical implications The analysis suggests that it does not make sense to have a one-size-fits-all de-risking approach to China and Chinese FDI. Instead, countries should consider their own circumstances, including IRs and their positions in the network of international systems. A nuanced understanding of the differences between the core, the periphery and the semi-periphery can enrich academic debates and policy choices regarding the future of global FDI flows. Originality/value The study offers a fresh perspective of host country receptivity to foreign investment, foregrounding IRs factors in IB research.
Purpose Sustainability is increasingly positioned as a strategic imperative for internationally active small and medium-sized enterprises (SMEs). However, international growth is often assumed to require scale, creating a paradox between expansion and sustainability performance. This study aims to examine the relationship between digital transformation (DT) and sustainable transformation (ST) exploring the role of organizational capabilities as a structural foundation for this dual transformation and to assess how organizational capabilities structurally enable sustainability outcomes independent of firm size among internationalizing SMEs. Design/methodology/approach The study adopts a quantitative research design based on data collected from 148 firms. Structural equation modeling (SEM) was applied using the SEMLj module in Jamovi. Organizational capabilities were operationalized through four categorical dimensions: quality certifications (QC), output, experience and firm size. A leave-one-out sensitivity analysis was conducted to test the robustness of structural paths. Findings The results indicate an excellent model fit (χ2 = 8.75, df = 8, p = 0.364) and confirm that digital maturity is a significant predictor of sustainability performance. The sensitivity analysis identifies QC as the critical anchoring capability, as their exclusion leads to a loss of model convergence. Despite only 38.5% of firms holding formal QC, this dimension emerges as the primary driver enabling the integration of digital strategies with environmental and social responsibility. Importantly, sustainability performance is found to be independent of firm size, while digital infrastructure scales with organizational growth. Originality/value These findings reveal a paradox of “sustainability without scale,” showing that sustainability performance in internationalizing SMEs is anchored in disciplined organizational capabilities rather than firm size. The findings contribute to capability-based and paradox perspectives by demonstrating that sustainability is strategically accessible to both SMEs and larger firms, offering actionable insights for entrepreneurs, policymakers and practitioners seeking sustainable international growth.
Purpose This paper aims to examine why multinational enterprises (MNEs), despite their central role in orchestrating global value chains (GVCs), often fail to generate the expected investment-led upgrading among local suppliers in less developed countries (LDCs). The authors challenge the common assumption that MNE-led orchestration naturally produces positive spillovers. Design/methodology/approach The study draws conceptually on Acemoglu and colleagues’ work on institutions and investment, alongside Property Rights Theory. These frameworks are used to explain how contractual power asymmetries shape investment incentives within GVCs. Findings The authors argue that strong power imbalances between orchestrating MNEs and local suppliers weaken suppliers’ incentives to invest in upgrading. Because MNEs can shift perceived business uncertainty onto less powerful suppliers, the latter face heightened risks that discourage long-term capability development. This dynamic helps explain the limited empirical evidence of upgrading in many LDC contexts. Research limitations/implications The analysis is conceptual and calls for empirical work that more precisely measures contractual power asymmetries and their effects on supplier investment behaviour. It also suggests revisiting assumptions in IB and GVC research regarding the automaticity of upgrading outcomes. Practical implications Policymakers and development agencies should recognise that MNE participation alone does not guarantee supplier upgrading. Strengthening local institutional frameworks and improving suppliers’ bargaining positions may be necessary to foster meaningful capability development. Originality/value The paper provides a novel theoretical explanation for the persistent gap between expectations and evidence regarding upgrading in GVCs. By integrating institutional economics with Property Rights Theory, it highlights how contractual power asymmetries systematically undermine suppliers’ incentives to invest.
Purpose The internationalization of eco-small and medium-sized enterprises (SMEs) may expose decision-makers to paradoxical tensions as they seek to reconcile conflicting objectives and constraints across heterogeneous regulatory and market environments. Yet relatively little is known about how these decision-makers experience and respond to such tensions during international expansion. Adopting a paradox perspective, this paper aims to examine how individual-level sources of paradox interact with spatial conditions across international contexts and identifies the strategies used by eco-SME decision-makers to manage these tensions. Design/methodology/approach This qualitative, exploratory study is based on semi-structured interviews with 30 French founders and senior managers from internationalized eco-SMEs operating in diverse green sectors. Findings Building on the value dilemmas observed at the individual level, the authors identify three individual sources of paradox among eco-SME decision-makers. The authors show how spatial-contextual factors shape these tensions across both developed and emerging markets, reflecting institutional asymmetries and uneven market recognition of sustainability. Finally, the authors distinguish two types of paradox management strategies, defensive and proactive, which underpin distinct internationalization pathways, from opportunistic approaches to more innovation- and responsibility-oriented forms of international expansion. Research limitations/implications This study is subject to several limitations that open up different directions for future research. Firstly, the empirical material is drawn from eco-SMEs headquartered in France. As prior work suggests that cultural contexts shape how individuals perceive and engage with paradox (Keller et al., 2018; Leung et al., 2018), the findings may not fully capture the diversity of paradox experiences in other national settings. Studies contrasting developed and emerging economies could better examine how cultural and institutional configurations may influence both the salience and management of paradoxical tensions in internationalized eco-SMEs. Secondly, future research could examine more systematically how defensive and proactive paradox management strategies shape opportunity recognition, suppression or creation over time. Longitudinal studies could trace how decision-makers’ work on tensions influences the emergence of international opportunities and whether proactive engagement with paradox leads to more innovative or responsibility-oriented internationalization paths. Thirdly, the analysis has deliberately emphasized the individual level of decision-makers. This focus leaves open questions about how paradoxical tensions are negotiated collectively. Future studies could adopt multi-level designs to examine paradox navigation at team, organizational or ecosystem levels. Finally, the sample is predominantly male, making it unclear whether and how women in comparable roles would experience and manage paradoxical tensions. Future research could explore how gendered expectations intersect with sustainability commitments and internationalization choices. Practical implications This research also has practical implications. For managers of sustainable ventures, it highlights the importance of cultivating a paradox mindset, which can support more reflective, innovative and ethically coherent decision-making in cross-border contexts. For policymakers, this study suggests that institutional misalignments across countries may distort or constrain the international expansion of eco-SMEs. Policy instruments that reduce regulatory uncertainty, reward responsible internationalization practices and support experimentation with inclusive business models may help create conditions under which eco-SME decision-makers can engage with paradoxes more proactively. Originality/value The study repositions international ecopreneurship within a paradox perspective by showing how individual characteristics and heterogeneous spatial settings shape the paradox management strategies adopted by eco-SME decision-makers during internationalization of their ventures.
Purpose Financial technologies are transforming the international banking industry and generating significant value. The purpose of this review essay is to examine potential issues from a consumer perspective that may arise from the implementation of fintech in developing economies, identify the underlying ethical factors and propose actions for the public, private and civil society sectors to mitigate the impact on consumers. Design/methodology/approach The authors use a metaphor of the “perfect storm” to highlight the converging forces affecting the consumers of fintech in emerging markets. Through a review of the literature, ethical analysis and examples, the authors highlight the key consumer issues and the negative externalities that fintech entrepreneurs, governments and civil society will need to address. Findings Fintech technologies have the potential to widen the digital divide, leading to even greater levels of inequality, especially for the most vulnerable, including women, rural populations, the uneducated, low-income adults and those lacking technological access and financial literacy. Practical implications This review essay provides guidance for fintech managers and entrepreneurs on exploring opportunities in less developed markets in response to unmet consumer needs. Originality/value Using a “perfect storm” metaphor, the essay takes a critical perspective on the benefits of fintech, exposing the ethical issues involved in implementing fintech in developing economies. This perspective adds insight to the extant literature.
Purpose This paper aims to examine how power and knowledge operate in international development projects (IDPs) and how epistemic injustice is produced through their structural and relational configurations. It advances a decolonial perspective by integrating power-as-process with the colonial matrix of power (CMP). Design/methodology/approach The paper adopts a conceptual and critical reflexive approach, drawing on international business (IB), critical management studies and decolonial scholarship. It develops an analytical framework to examine how epistemic injustice is enacted across multiple levels of IDPs. Findings The paper shows that epistemic injustice is structurally embedded in IDPs and enacted across institutional, political, organisational and individual levels. Dominant power-as-resource perspectives obscure the relational nature of power and contribute to the marginalisation of local knowledge. By contrast, a power-as-process perspective reveals how epistemic hierarchies are reproduced and contested through everyday practices. Research limitations/implications The study calls for empirical research to examine how epistemic justice can be operationalised in diverse development contexts. Practical implications The paper highlights the need for decolonial reflexivity and for recognising local actors as legitimate epistemic agents to foster more inclusive practices. Social implications This perspective allows for developing strategies that address historical injustices and promote social equity, further contributing to global efforts to tackle grand challenges. Originality/value This paper contributes to IB and project management by repositioning IDPs as key sites of analysis and by linking power-as-process with the CMP to address epistemic injustice.
PurposeThis study aims to focus on European Union (EU) regulations on sustainability reporting, which are currently equated with a build-up of bureaucracy, although potential chances of reporting for firms and stakeholders are rarely discussed. Design/methodology/approachThis study includes a normative overview of the EU Omnibus with its major amendments of the Corporate Sustainability Reporting Directive (CSRD) and Taxonomy Regulation. Then, this paper reviews prior empirical research on the former Non-Financial Reporting Directive (NFRD), Taxonomy Regulation and CSRD, as well as their impact on corporate financial and sustainability outputs, through the lens of stakeholder and legitimacy theories. Finally, a critical assessment is made of the limitations of previous studies, the legitimacy crisis of the EU Commission and the implications for corporate sustainability transformation. FindingsThe sustainability reporting amendments of the EU Omnibus contrast with legitimacy and stakeholder theories, endanger the goals of the EU Green Deal project, lead to a massive legitimacy crisis of the EU Commission and reduce the possibility that corporate sustainability will go beyond the achievement of specific compliance levels. As regards EU sustainability reporting, the new thresholds for firms are a political compromise, achieved by lobbyism that lacks either empirical proven legitimacy or stakeholder inclusion. In view of the heterogeneous empirical results regarding the information value of NFRD reporting, the greater regulatory pressure of the CSRD and Taxonomy Regulation before the introduction of the EU Omnibus was justified. Originality/valueTo the best of the author’s knowledge, this is the first study of the EU Omnibus on sustainability reporting to connect the normative, theoretical and empirical aspects of the NFRD, CSRD and Taxonomy Regulation and critically reflect on their negative consequences for corporate sustainability.
Purpose This viewpoint paper aims to examine how Trumpism and the resurgence of economic nationalism are reshaping the political context of international business (IB). It argues that IB scholarship should move beyond treating politics as a contextual constraint and instead make politicisation central to analyses of how the meaning, legitimacy and acceptable forms of cross-border economic activity are constructed and contested. Design/methodology/approach The paper adopts a conceptual approach, drawing on IB, international relations, political economy and political sociology. The contributions use illustrative examples from Trump administration policies and related contexts to examine how multinational enterprises (MNEs), states and societal actors co-constitute politicised business environments. Findings The contributions show that trade policy, foreign direct investment and MNE operations are increasingly embedded in narratives of sovereignty, national identity and geopolitical rivalry. MNEs are not only adapting to politicised environments but also helping to shape them through strategic, discursive and non-market actions. Research limitations/implications The paper calls for future research on how politicisation unfolds across institutional contexts, how firms engage in discursive and non-market strategies and how geopolitical narratives influence investment decisions and legitimacy assessments. Practical implications For managers and policymakers, the paper highlights that navigating contemporary IB environments increasingly requires attention to the symbolic and political dimensions of policy and strategy. Firms must manage not only regulatory and economic constraints but also the narratives through which their activities are interpreted by governments, the public and other stakeholders. Social implications The paper highlights how MNEs can shape public debates on globalisation, national identity and economic sovereignty, raising questions about their societal responsibilities in politicised environments. Originality/value The paper contributes to IB scholarship by shifting attention from politics as a contextual constraint to politicisation as a process through which the legitimacy and organisation of IB are actively constructed and contested.
Purpose While extant research recognizes the strategic importance of business process outsourcing (BPO), few studies examine the impact of the nature of the outsourced task and the outsourcing location on firm financial performance. This study aims to address this gap by examining how the risks and returns of outsourcing vary based on the outsourcing location (onshore vs. offshore) and the knowledge intensity of the process. Design/methodology/approach The study synthesizes the knowledge-based view of the firm with transaction cost economics to develop the authors’ hypotheses. Using a large sample of BPO initiatives announced between 2000 and 2014, the study examines the impact of BPO announcements on firm financial performance using an event study and test the authors’ hypotheses using multivariate regressions. Findings The authors find that the outsourcing of knowledge-intensive business processes and outsourcing to offshore locations are generally beneficial for firms. Interestingly, the authors find the interaction of the two to be detrimental to the firm as offshore outsourcing of knowledge-intensive processes negatively impacts firm performance. Originality/value This study is novel in considering the combined effects of both the nature of the process and the location to provide a clearer explanation of how the risk-rewards associated with offshoring, particularly of knowledge-intensive processes, vary for firms. The findings from this study also help shed light on the potential drivers of the inconsistencies highlighted in past research on the impact of outsourcing on firm performance.
Purpose The purpose of this study is to examine how quality standards and technical regulations emerge, evolve and shape competitive strategies. It seeks to explore the processes of co-creation of standards, the roles played by different firms, and the interrelations among companies, institutions and regulatory actors within an emerging economy context. By examining these dynamics, the study aims to contribute to the literature on institutional change, and strategic adaptation, offering insights into how firms navigate and influence regulatory environments in technologically evolving and highly competitive industries. Design/methodology/approach This qualitative research adopts a multiple-case study design combined with grounded theory to examine how quality standards and technical regulations emerge and evolve in the Brazilian light-emitting diode (LED) industry. Using the Gioia methodology (Gioia et al., 2013) and content analysis, the study explores how firms co-create standards, assume different roles and develop competitive strategies in a complex institutional environment. Embedded cases of LED firms provide insights into interrelations among companies, institutions and regulatory bodies. This approach enables an inductive and systematic analysis of the evolving dynamics of quality standardization in an emerging economy context. Findings The findings reveal that the emergence and evolution of quality standards in the Brazilian LED industry result from an interactive and co-creative process involving firms, industry associations and regulatory agencies. Firms adopt differentiated strategies depending on their market positions (business-to-business, business-to-consumer (B2C), original equipment manufacturer, assembly or import) and levels of technological capability. The study highlights how standards serve both as constraints and enablers of competitive advantage, shaping production processes, innovation paths and market access. Originality/value This study offers a perspective on how quality standards and technical regulations emerge through co-creation among firms and institutions in an emerging economy context. It advances understanding of the strategic and institutional dimensions of standardization in the Brazilian LED industry. The research contributes to literature on institutional theory, standardization and strategic management by revealing how firms’ roles and interactions shape both regulatory outcomes and competitive dynamics. It also provides practical insights for policymakers and managers on fostering innovation and competitiveness through participatory standard-setting processes.
Purpose-This viewpoint paper examines how the return of the Trump administration is reshaping international business, sustainability governance and global institutions. Organised as a structured bricolage of three interrelated viewpoints, it analyses how rule-of-law backsliding, sustainability rollback and business-and-human-rights reconfiguration challenge responsible business and sustainable development frameworks. Design/methodology/approach-The paper adopts a conceptual and qualitative approach, combining policy and document analysis with critical perspectives from international business, international political economy and political science. It synthesises three viewpoints on EU sustainability rollback, neoliberal capitalism and the politicisation of business and human rights. Findings-Recent political shifts contribute to the rollback and contestation of sustainability and human-rights governance. Across the three viewpoints, rollback through politicisation emerges as a common mechanism: sustainability regulation, Environmental, Social and Governance, Diversity, Equity and Inclusion, due diligence and human rights are weakened by being reframed as anti-competitive, ideological, sovereignty-threatening or hostile to national economic interests. Research limitations/implications-Future research should examine how firms, states, business associations and civil society actors weaken, contest or defend sustainability and human-rights governance, including beyond the US-EU axis. Practical implications-Managers and policymakers need resilient governance, due-diligence and political-risk systems for fragmented sustainability and human-rights regimes. Social implications-Rollback may weaken climate, labour-rights and social-equity efforts, with consequences for suppliers, workers and communities embedded in global value chain. Originality/value-The paper contributes to international business scholarship by linking geopolitical shifts, regulatory change, corporate strategy, neoliberal political economy and business-and-human-rights governance. It shows that the Trump II era is not merely a period of policy reversal or heightened political risk, but a deeper destabilisation of the legal, institutional and normative conditions on which responsible international business depends.
Purpose The purpose of this paper is to investigate the potential role of fintechs in advancing women’s financial inclusion in Brazil and identifies key empirical and regulatory gaps. Design/methodology/approach The study draws on a qualitative and critical review of secondary sources, including publicly available data, academic literature, regulatory frameworks and institutional reports, to develop a conceptual and diagnostic analysis. Findings The analysis reveals that while fintechs have experienced significant growth in Brazil, the existing data remain highly aggregated and do not allow for a gender-disaggregated assessment of their effects. This prevents any rigorous evaluation of whether fintechs are, in practice, advancing gender equality and women’s financial inclusion in the country. By making this gap visible and situating it within a broader critical framework, this paper contributes to both future empirical research and evidence-based policymaking on the topic. Research limitations/implications Available data are not sufficiently disaggregated to determine whether fintech growth has translated into greater gender equality, raising questions about the actual impact of these innovations on women’s inclusion. Originality/value It highlights the paradox between the country’s advances in financial digitalization and the continued barriers faced by women, stressing the need for more sex-disaggregated data and further research to evaluate the real effects of fintechs on gender-inclusive finance.
Purpose This paper aims to examine how media discourse and political narratives shape the outcomes of economic policies, specifically regarding capital controls. By analyzing the press surrounding Argentina’s economic policies, this study finds that the media’s framing of market liberalization can either accelerate financial globalization or buffer its effects. The study argues that policymakers must counter the media’s tendency to externalize economic downturns by promoting a more nuanced public understanding of internal responsibilities. Furthermore, the study reveals the press’s strong bias toward supply-side interventions and deflationary measures, urging policymakers to actively explore and communicate the value of demand-side policies as a viable alternative for economic stability. Design/methodology/approach This study provides a discursive content analysis of articles from Argentina’s largest periodicals: Ambito Financiero, La Nacion and El Clarin. It covered available articles during President Macri’s early administration, focusing on capital control reforms and bond holdout renegotiations. The analysis specifically examined coverage of Macri’s rationale for lifting capital controls and resolving bond holdouts. Employing a two-step framework, the methods combine qualitative discourse analysis for context with quantitative content analysis to score the financial press’s advice and biases. The analytical framework delineates ontological commitments, conceptual logics and policy biases. It also provides an empirical analysis of key economic metrics. Findings The case found that Macri and the financial press provided a very effective discursive strategy that appealed to voters. Nonetheless, preexisting high inflationary pressures, coupled with a strong domestic demand for dollars made capital account liberalization a complex economic policy issue. An influx of speculative investor capital, if not carefully managed, could exacerbate inflation through a “pass-through” to domestic prices. Simultaneously, the persistent flight of resident pesos and dollars (capital flight) weakened the peso, directly impacting the price level and the external sector. Originality/value All work is original and meant to gain greater analytical purchase over Macri’s re-globalization efforts during his one term presidency, namely, capital account liberalization and the renegotiation of Argentina’s sovereign debt with New York hedge Funds.
Purpose The study aims to investigate how institutional voids influence the formation and the implementation of sustainability practices by Brazilian suppliers in the textile sector. Design/methodology/approach A qualitative study was conducted with Brazilian textile suppliers certified by ABVTEX. Data were analyzed to identify how firms perceive and navigate overlapping regulatory, infrastructural and market-related voids affecting sustainability implementation. Findings The results show that suppliers respond to institutional fragmentation through adaptive practices, self-governance mechanisms and efforts to build legitimacy with global buyers. The study demonstrates how distinct categories of institutional voids impose specific constraints and how firms mobilize corresponding strategic responses to overcome them. Practical implications The findings provide insights for managers and policymakers on how suppliers can navigate institutional weaknesses to meet sustainability demands. The framework can guide capacity-building initiatives, certification programs and governance mechanisms aimed at improving sustainability performance in fragmented institutional contexts. Originality/value This study advances international business and global value chain research by proposing a framework that links institutional voids to firms’ strategic responses, demonstrating that these responses not only compensate for governance deficiencies but also paradoxically reproduce structural constraints, shaping uneven sustainability trajectories in the Global South.
PurposeThis study aims to analyze the relationship of environmental, social and governance (ESG) score and cost of capital of Southeast Asian nonfinancial firms and how the quality of the legal system in Southeast Asian countries strengthens that relationship.Design/methodology/approachThe study analyzes 490 firm-year observations across five representing countries in Southeast Asia (Indonesia, Singapore, Malaysia, Thailand and Philippines) using weighted least squares, random effects and fixed effects models. It is also specifically observed how the changes before, during and after COVID-19.FindingsThe study found a significant negative relationship between ESG scores and the cost of capital. The effect is stronger in countries with weaker legal systems, such as Indonesia, Thailand and Philippines, across all seven years of observation. In a more stringent time observation, observations before COVID-19 (2017-2019) agree to this relationship, while observations during the pandemic (2020-2021) did not. After COVID-19, observations (2022-2023) show that ESG effects on cost of capital are still partially present.Research limitations/implicationsThe study's classification of legal systems as "weak" or "strong" is relative to the Southeast Asian context, and broader regional comparisons may provide different insights for future research.Practical implicationsPolicymakers can use these insights to promote ESG activities. In addition, by adopting ESG initiatives, companies not only improve financial outcomes but also contribute to addressing global challenges such as climate change, inequality and corporate governance.Originality/valueThis study moves the conversation forward by combining standard economic views on ESG and the cost of capital with more in-depth political and institutional critiques. It also looks at how ESG disclosures and practices relate to broader issues of legitimacy, power and responsibility in international business, incorporating different time periods, including the COVID-19 era.
Purpose - This study develops a mechanism-based account of neo-imperialism in contemporary US geostrategy under the Trump II administration. It argues that hierarchy is pursued through forms of conditional interdependence in which access to markets, infrastructures, technologies and strategic networks is made contingent on alignment, trusted-partner status and compliance. The study aims to examine how these mechanisms are articulated through firms and compliance architectures and what this implies for multinational corporations' strategy, positioning and alignment choices, as well as for international business scholarship. Design/methodology/approach - The study undertakes a qualitative content analysis of two central US policy documents: the 2025 National Security Strategy and the U.S. Department of State Agency Strategic Plan for 2026-2030. Using a five-part diagnostic framework, it analyses how the texts articulate regional primacy, conditional access, network leverage, technology and standards governance and corporate mobilisation, and how these mechanisms position firms as channels through which conditional interdependence is operationalised. Findings - The analysis identifies a neo-imperial shift from managing geopolitical risk to governing cross-border economic activity through conditionality, infrastructural gatekeeping and ecosystem control. The documents articulate conditional interdependence, in which participation in markets, technologies, infrastructures and strategic networks is shaped by political and institutional conditions. Firms are positioned both as objects of discipline and redesign and as agents of implementation that reproduce hierarchy through standards, compliance, localisation, procurement and ecosystem alignment. Strategic choice for US and non-US firms is structured around recurring trade-offs between alignment and hedging, integration and duplication, and state-embedded and market-led expansion. Originality/value - The study develops an account of infrastructural neo-imperialism organised through conditional interdependence, in which firms, networks and compliance architectures function as mechanisms for governing access, exclusion and alignment. It advances international business research by moving beyond exogenous geopolitical risk to explain how hierarchy is produced and reproduced through corporate organisation, network control and politically governed interdependence.
Purpose The purpose of this paper is to critically examine the Journal of International Business Studies (JIBS) editorial’s approach to gender inequality and to argue for a radical rethinking of international business research through an intersectional anti-capitalist feminist perspective. The paper contends that, while the editorial seeks to advance gender research, it does not fully engage with feminism as a transformative political project. To develop this argument, the paper first examines the editorial’s theoretical foundations, including modernisation theory, gender essentialism, and the evaluative-equality framework, highlighting their potential depoliticising effects. It then analyses how feminist terminology is mobilised in ways that may dilute its critical significance. Finally, it proposes directions for more transformative feminist approaches to international business research. Design/methodology/approach This paper offers a critical feminist response to JIBS editorial “Evolving Patterns of Gender Inequality over Time and Across Countries.” Findings Drawing on feminist scholars, this critique argues that progress requires transforming systems, not just including women. It advocates integrating feminist political economy and decolonial perspectives into international business research. By highlighting how depoliticised concepts reinforce patriarchal norms, it calls for a shift from reducing equality to inclusion within existing systems towards transformative, structural change, offering a framework grounded in intersectional and decolonial feminist theory. Originality/value Since JIBS significantly shapes future scholarship, this critique is vital. It reframes feminist theory as a transformative political project rather than a mere managerial tool, challenging depoliticised research to demand a radical engagement with power, patriarchy and political economy.
Purpose This study aims to investigate whether and how corporate digitalization promotes multinational enterprises' (MNEs') outward foreign direct investment (OFDI), particularly in developing countries along the Belt and Road Initiative (BRI). It further seeks to uncover the internal and external boundary conditions under which digitalization translates into greater international investment activity by integrating firm-level strategy and host-country digital environment into a unified analytical framework.Design/methodology/approach Grounded in the resource-based view (RBV), this study empirically examines the impact of corporate digitalization on OFDI. Using an unbalanced panel data set of 2,780 Chinese listed MNEs from 2013 to 2022, overseas subsidiaries serve as the unit of analysis. Firm-level digitalization is measured through objective digital input-output indicators using an entropy-weight method, while moderating variables include corporate digital strategic orientation and host-country digital infrastructure.Findings The corporate digitalization significantly promotes OFDI: more digitally advanced MNEs engage more actively in overseas investment. This positive relationship is strengthened when firms exhibit a stronger digital strategic orientation, indicating the critical role of strategy alignment. Moreover, higher levels of host-country digital infrastructure amplify the effect of firm digitalization on OFDI, especially in developing economies. These findings remain robust across alternative measures, subsamples and instrumental-variable estimations.Originality/value This study advances international business and digitalization research by integrating micro-level strategic orientation and macro-level digital infrastructure within the RBV to explain OFDI. It offers a dynamic interpretation of digital resources as sources of international competitive advantage providing actionable insights for managers and policymakers seeking to leverage digital transformation to foster sustainable OFDI.
Purpose This study aims to examine the impact of institutional quality on global value chain (GVC) participation across the selected seven Latin American countries.Design/methodology/approach This study uses Driscoll-Kraay's standard error estimation technique, which controls for cross-sectional dependence, heteroskedasticity and autocorrelation, and is appropriate when the time element is larger than the cross-sectional element.Findings The findings reveal that control of corruption has a positive impact on forward and total GVC participation, while government effectiveness exhibits a nonlinear U-shape relationship, indicating that beyond a specific threshold, governance effectiveness may once again prove advantageous for forward and total GVC participation. Additionally, it was found that foreign direct investment, gross capital formation, gross domestic product per capita and internet use also affect forward, backward and total GVC participation; population does not influence any GVC dimension. Ultimately, this paper recommends pursuing appropriate policies with the primary goal of reforming institutions and creating a conducive environment for fostering GVC participation.Originality/value This study offers a rare, institution-focused empirical analysis of GVC participation in Latin America, integrating diverse governance quality measures and nonlinear governance impacts across various GVC facets, along with digital connectivity and macroeconomic fundamentals, within a unified panel framework.
