This article first identifies two gaps in the literature: (1) the need to expand international market entry research beyond contractual modes of "make, buy, and ally;" and (2) the need to address the imbalance in the institution-based view that has paid inadequate attention to informal institutions. To help close the two gaps, we identify reciprocity—the mutually contingent exchange of gratifications that is supported by informal institutions—to be a non-contractual mode of international market entry. We focus on how informal institutions provide some of the conditions, motivations, and precipitating circumstances behind the use of reciprocity.

To celebrate the 50th Anniversary of International Studies of Management & Organization (ISMO), the Founding Editor, Jean J. Boddewyn, the past Editor-in-Chief, Moshe Banai, and the current Editor-in-Chief, Abraham Stefanidis, compile this issue that describes the journal’s half-a-century journey. In this article, we present ISMO’s evolution from a platform that included translations of non-US-published articles in the 1970s to an internationally renowned journal that represents a truly universal scholarship of management and organization research. Drawing on contributions from six prominent scholars, we further reflect on the themes of culture, expatriation, employment, and leadership that have shaped international business scholarship during the past fifty years and are expected to herald future streams of research in the years to come.

Purpose The purpose of this study is to apply the institution-based view and resource dependence theory in arguing that perceived deficiencies in a legal service sector where a foreign subsidiary operates will influence the intensity of its political ties with actors in both the regulatory and legal arenas. The authors further theorized that these relationships will vary across governance environments. Design/methodology/approach The research context for this study was multinational enterprises (MNE) wholly owned foreign subsidiaries and international joint ventures (IJVs) operating in the Philippines and Thailand. Data for most variables in this study came from primary survey data collected in 2018 from senior managers of MNE WOSs and IJVs operating in the Philippines and Thailand. Findings The authors' analysis of 352 foreign subsidiaries operating in the Philippines and Thailand show that, in a flawed democracy, perceived deficient legal services enhance the intensity of foreign subsidiary political ties with government actors in both the regulatory and legal arena. However, in a hybrid regime, perceived deficient legal services enhance only the intensity of foreign subsidiary political ties with government actors in the regulatory arena. The authors' findings also suggest that the relationship between perceived deficiencies in legal service sector and the intensity of political ties is stronger for foreign subsidiaries that operate in heavily regulated industries across both a flawed democracy and hybrid regime. Conversely, the authors do not find the market orientation of these foreign subsidiaries to play a role in this process. Research limitations/implications The authors' study was unable to control for whether managerial perceptions of deficient legal services were well informed at the local or federal level. This issue raises the question of will the presence of an in-house legal department influence managerial perceptions with regard to deficiencies within a legal service sector? Based on these limitations, the authors suggest that future research can further extend political ties research by using a fine-grained analysis in investigating the antecedents of managerial perceptions of legal services within different legal jurisdictions. Originality/value The political ties literature has largely argued that political ties are more prevalent in environmental contexts comprising institutional voids as MNEs attempt to mitigate volatility associated with the lack of developed institutional infrastructure (e.g. Blumentritt & Nigh, 2002; Bucheli et al., 2018). However, the concept of institutional voids is very broad and still rather abstract in nature. Hence, scholars have yet to fully understand what types of institutional voids may drive MNE foreign subsidiary political tie intensity in varying governance contextsThe authors' study attempts to contribute to this important line of research by investigating how one type of institutional void, namely, perceived deficiencies in the legal service sector, can influence the intensity of political ties in varying governance environments.

Purpose– The purpose of this paper is to show that the market-internalization framework can be applied to non-economic institutions because society’s non-market sub-systems – political, social and cultural – are subject to failures just like economic markets, and firms can contribute to their repair or replacement by selectively, strategically and responsibly internalizing the market and non-market arenas for these sub-systems’ functions.Design/methodology/approach– Internalization theory is applied to a new area – that of societal failures.Findings– Internalization theory can be applied to the joint failures of economic and non-economic institutions, and this helps explain the growing “political role” of multinational enterprises in economies in transition as well as the phenomenon of increasing multinational firm activity in underdeveloped economies.Research limitations/implications– The limits and implications of internalization are drawn in terms of theory development, legitimacy and managerial strategies.Originality/value– This paper is the first to analyze the selective internalization of societal failures by the multinational enterprises. It extends internalization theory and examines the contested notion of “public goods”.

Scholars have recently called for international market entry research that would reach beyond the three contractual modes of “make, buy and ally” that are primarily based on transaction-cost economics. In response, we suggest that reciprocity, as a noncontractual governance mode, deserves research attention. Drawing from the rich literature on reciprocity in the social sciences, economics and organization theory – in particular, from relational models theory and transaction cost economics that mostly deal with a domestic context –, we extend such research to the business of international market entry. Since reciprocity constitutes a distinct governance mode, we created a matrix combination of the three institutional “pillars” – regulative, normative and cognitive – with the three traditional exchange “dimensions” of asset specificity, uncertainty and frequency. Situations from diverse contexts illustrate three particular combinations of these factors that reveal how reciprocity can be effectively used for international market entry.

This study applies the institution-based view and neo-institutional theory in addressing how managerial perceptions of regulator vulnerabilities to political pressure, and institutional distance, influence intensification of political ties. Our analysis of 181 wholly owned foreign subsidiary (WOFSs) operating in the Philippines suggests that managerial perceptions of regulator vulnerability to political pressures positively enhance the intensification of political ties. Our results also reveal that regulatory distance and, more importantly, the simultaneous presence of political and regulatory distance diminish the positive relationship between managerial perceptions of regulator vulnerability to political pressures and a WOFS’s propensity to enhance the intensification of political ties. Managerial implications and future research directions are discussed.

The concept and theory of reciprocity provide fruitful ways of integrating social and political strategies because both involve donating valuable resources to non-market recipients – mainly non-governmental organizations, politicians and regulators – who are not contractually bound to reciprocate although a return is normally expected. Besides, we interpret the use of non-contractual reciprocity through relational-models theory and transaction-cost economics. The former offers a model of ‘equality-matching’ that corresponds to reciprocity while transaction-cost economics’ criteria of uncertainty, frequency and asset specificity can be applied to non-contractual relationships in order to determine their efficiency. We also differentiate reciprocity from bribery and offer research implications of the fact that goods can be obtained from others without using transactions.

This article raises the key question of how our field of international business can regain legitimacy and relevance in a new era, and specifically asks: if not us, who? In order to answer this question, we discuss new international business realities and challenges and raise a number of additional questions that we hope will encourage a fruitful dialogue in our field. We further propose specific, actionable projects that we believe the international business community can implement in order to regain legitimacy and relevance.

Under transaction-cost economics, the three primary governance modes in international business are the contractual “make, buy or ally.” However, recent research has defined the conceptual and theoretical bases of another set of means to obtain the intermediate products a firm needs when entering a market–namely, by plying a potential suppliers with philanthropic donations and/or by lobbying them so that “non-contractual” exchange mechanisms can achieve what is usually expected from the three traditional “contractual” governance modes. Philanthropy and lobbying can be interpreted through the well-established concept and theory of reciprocity which, as understood under relational- models theory, reveals that reciprocity constitutes a distinct governance mode, and that it may be superior to “make, buy or ally” in reducing exchange costs, under transaction-cost economics. However, the international-business implications of these conclusions still need to be developed in terms of site specificity, the liabilities of foreignness and privateness, institutional voids and obligatory relationships – as is done in this analysis which offers samples of how the use of reciprocity varies among countries and is adapted to them.

Purpose The purpose of this paper is to extend the purview of internalisation theory in understanding the global allocation of resources in different institutional contexts. Design/methodology/approach Theoretical extensions of internalisation theory are proposed in response to a comment. Findings The traditional focus of internalisation theory can be extended beyond the normal market exchange context, first, by expanding the range of transactions; second, by including non-market actors; and third, by expanding the relevant welfare criteria. Originality/value Comparative institutional analysis is enhanced by expanding the consideration of the range of intermediate goods that are traded, the potential providers examined and extending the criteria of assessment beyond efficiency to include equity, sustainability and legitimacy. These extensions add value to the internalisation theory.

The growing use and abuse of sex in French advertising prompted strong reactions from consumer and feminist associations and resulted in extensive and strict public and private controls. Recently, the French self-regulatory system developed a system involving various stakeholder organizations to analyze social trends related to the acceptability of sexually oriented advertisements, develop new voluntary guidelines, solicit complaints, and handle them through an independent jury. Subsequently, the number and proportion of controversial advertisements has significantly decreased, and French advertising practitioners have been nudged to accept greater professional responsibility in exchange for the freedom of creativity to which they aspire. A few U.S. developments parallel this increasing cooperation between the public and private controllers of the old issue of “taste and decency in advertising,” which has not faded in societal importance.

This chapter complements the one that appeared as "History of the AIB Fellows: 1975-2008" in Volume 14 of this series (International Business Scholarship: AIB Fellows on the First 50 Years and Beyond, Jean J. Boddewyn, Editor). It traces what happened under the deanship of Alan Rugman (2011-2014) who took many initiatives reported here while his death in July 2014 generated trenchant, funny, and loving comments from more than half of the AIB Fellows. The lives and contributions of many other major international business scholars who passed away from 2008 to 2014 are also evoked here: Endel Kolde, Lee Nehrt, Howard Perlmutter, Stefan Robock, John Ryans, Vern Terpstra, and Daniel Van Den Bulcke.

Are you sure of the meanings of such key IB concepts as “nonmarket,” “public and private ordering,” “political influence” and “precipitating circumstances?” Besides, do you know when research is truly international, that firms can legitimize their own actions, that the CEOs of MNEs can have “private cabinets” and depend significantly on external intermediaries, and that reciprocal behavior which is non-contractual in nature can substitute for or complement “make, buy or ally” under certain conditions? These ambiguous concepts and unsettled issues are analyzed here with whatever evidence is at hand and in the hope that you will pick up some of the challenges presented here.

In his article “Is Your ‘IB’ Research Truly ‘International’?” (published in Volume 16, Issue 2, pages 3-5), Jean Boddewyn invited comments and questions from readers of AIB Insights. Professor Boddewyn received several, which he summarizes here, with some further comments.

How will managerial perceptions concerning specific dimensions of legal system uncertainty affect wholly owned foreign subsidiary (WOFS) political tie intensity? This study employs the institution-based view of international business strategy to explore how managerial perceptions of specific dimensions of legal system uncertainty – ex-ante commercial law inadequacy and ex-post judicial arbitrariness – will act as determinants of WOFS political tie intensity. Our analysis of 181 WOFSs in the Philippines suggests that managerial perceptions of ex-ante commercial law inadequacy and ex-post judicial arbitrariness, being two distinct dimensions of legal system uncertainty, are determinants of political tie intensity. We also find that the positive association between managerial perceptions of ex-ante commercial law inadequacy and the intensification of political ties grows stronger when a WOFS is engaged in organizational adaptation to the local context, while the positive association between managerial perceptions of ex-post judicial arbitrariness and the intensification of political ties grows stronger when a WOFS is engaged in strategically positioning operations in an emerging market environment.

The article raises the question of whether your international business research is truly “international.” It attempts to stimulate IB scholars to actively think about whether their individual research is truly international, and share their thoughts.

Seventy years after its postwar inception, the field of international business–government relations (IBGR) is rich in new concepts, typologies, theories and methodologies that have broadly reflected the three post-WWII periods of Confrontation, Accommodation and Competition. This analysis discusses the correspondence between these “new terms” and IBGR practice during each one of these periods which have continuously brought up new actors, issues and ideologies whose study keeps growing in quantity if not always in quality. It concludes with what can be anticipated regarding the international relations between business and governments in a future marked by much greater political disorder and less economic multilateralism as well as by nonmarket strategies that may remain localized.

One of the forces which has indelibly shaped marketing is the internet. It has not only changed the way we communicate, but our marketing practices and our advertising self-regulation process (Kerr, et al 2012). Most advertising self-regulatory frameworks are country specific and typically an artefact of culture and the national regulatory environment (Boddewyn 1989; Rotfeld 1992). The importance of protecting consumers from deceptive advertising is universal, and in trying to regulate a global medium, we need to integrate national concerns into global guidelines and international best practice. Currently there is no global framework for advertising self-regulation, even though there is an urgent need to both protect consumers in this unregulated environment and ensure marketers’ obligations for legal, decent and truthful advertising are met.

Academy of Management Annual Meeting Proceedings includes abstracts of all papers and symposia presented at the annual conference, plus 6-page abridged versions of the “Best Papers” accepted for inclusion in the program (approximately 10%). Papers published in the Proceedings are abridged because presenting papers at their full length could preclude subsequent journal publication. Please contact the author(s) directly for the full papers. Highlighting Some Key Concepts and Issues in IB ResearchJean J BoddewynJean J BoddewynBaruch College-The City U. of New YorkPublished Online:30 Nov 2017https://doi.org/10.5465/ambpp.2015.15073abstractAboutSections ToolsDownload CitationsAdd to favoritesTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail AbstractAbstract: Are you sure of the meanings of such key IB concepts as "nonmarket," "public and private ordering," "political influence" and "precipitating circumstances?" Besides, do you know when research is truly international, that firms can legitimize their own actions, that the CEOs of MNEs can have "private cabinets" and depend significantly on external intermediaries, and that reciprocal behavior which is non-contractual in nature can substitute for or complement "make, buy or ally" under certain conditions? These ambiguous concepts and unsettled issues are analyzed here with whatever evidence is at hand and in the hope that you will pick up some of the challenges presented here. Keywords: Key concepts in IB research; unsettled IB issues FiguresReferencesRelatedDetails Vol. 2015, No. 1 Permissions Metrics in the past 12 months History Published online 30 November 2017 Published in print 1 January 2015 InformationCopyright of Academy of Management Journal is the property of Academy of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s express written permission. However, users may print, download, or email articles for individual use.