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Towards a New Agenda for the Study of Business Internationalization: Integrating Markets, Institutions and Politics

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  • Rodrigues, S.B.

Abstract

Business is becoming increasingly international. At the same time, governments are intervening more in the conduct of business. A further development is the growing significance of emerging economies, many of which have a tradition of active government involvement with business. Taken together, these trends make it imperative to understand the relationships between firms and their institutional contexts. Conventional theories adopt an over-rationalized view of these relationships international business. Their apolitical perspective misses the fact that in order to build and maintain international operations, firms need to develop political relations with governments and institutions in home countries and abroad. The aim of this lecture is to develop an alternative perspective with particular reference to the internationalization of firms, large and small. This considers how multinationals gain international positions through bargaining power with foreign governments. By contrast, SMEs face liabilities in dealing with foreign governments and instead often have to achieve internationalization through networking with other SMEs, with domestic communities and support agencies via various forms of social innovation. The lecture concludes that political and social innovation perspectives open new research avenues in the field of international business.

Suggested Citation

  • Rodrigues, S.B., 2010. "Towards a New Agenda for the Study of Business Internationalization: Integrating Markets, Institutions and Politics," ERIM Inaugural Address Series Research in Management EIA-2010-043-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..
    • Handle: RePEc:ems:euriar:20068
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    File URL: https://repub.eur.nl/pub/20068/EIA-2010-043-STR.pdf
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    References listed on IDEAS

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    1. Ojala, Arto, 2009. "Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market," International Business Review, Elsevier, vol. 18(1), pages 50-59, February.
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    4. Jean J Boddewyn, 1988. "Political Aspects of MNE Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 341-363, September.
    5. Henk W. Volberda & Arie Y. Lewin, 2003. "Co-evolutionary Dynamics Within and Between Firms: From Evolution to Co-evolution," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2111-2136, December.
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    7. Mara Faccio, 2006. "Politically Connected Firms," American Economic Review, American Economic Association, vol. 96(1), pages 369-386, March.
    8. Suzana Rodrigues & John Child, 2008. "The Development of Corporate Identity: A Political Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(5), pages 885-911, July.
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    More about this item

    Keywords

    bargaining power; co-evolution; environment; evolution; influence; institutions; internationalization; markets; multinationals; politics; small and medium enterprises; social innovation;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K2 - Law and Economics - - Regulation and Business Law
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • N2 - Economic History - - Financial Markets and Institutions

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