Introduction to the special issue on "The Internet and its paradoxical nature in international business

Citation

Sinkovics, R.R. and Yamin, M. (2007), "Introduction to the special issue on "The Internet and its paradoxical nature in international business", Critical Perspectives on International Business, Vol. 3 No. 4. https://doi.org/10.1108/cpoib.2007.29003daa.001

Introduction to the special issue on "The Internet and its paradoxical nature in international business"

About the Guest EditorsRudolf R. Sinkovics is Senior Lecturer in International Business at The University of Manchester, Manchester Business School, UK. His research centers on interorganizational governance, the role of ICT in firm internationalization and research methods in international business. He received his PhD from Vienna University of Economics and Business Administration, Austria.

Mohammad Yamin is Reader in International Business at The University of Manchester, Manchester Business School, UK. His research focuses on the role of subsidiaries within multinational companies, small firm internationalization and the role of the Internet in the internationalization of firms. He received his PhD in Economics from the University of Manchester.

Introduction to the special issue on "The Internet and its paradoxical nature in international business"

Devoting a special issue of critical perspectives on international business (CPoIB) to the “paradoxical nature” of the Internet in International Business (IB) was deemed appropriate and timely, as the role of the medium is often unjustly exaggerated in relation to both International Business theory and practical application. The aim of this issue of CPoIB was to bring together research that provides a basis for understanding novel IB phenomena, facilitated by the emergence the Internet. The papers which are included in the special issue cover areas of firm internationalisation, Information Communication and Technology (ICT) facilitated relationships between small and large firms, ICT-enabled structural change in Multinational Companies (MNCs) and ICT impact on the customer and supplier relationships. According to the Merritt-Webster online dictionary, a paradox entails having “seemingly contradictory qualities”. In this sense the Internet medium and ICT more generally does seem to have paradoxical impact on international business activity and management.

The papers included in the special issue each highlight a distinct dimension of the internet/ICT paradox in the context of international business. Thus whilst the internet can justly be credited with removing some barriers to growth and international scope of small businesses (Bell, 1995; Lituchy and Rail, 2000), in speeding internationalization it may remove or reduce opportunities for learning about market environments. Fast internationalisation may also become “ignorant” internationalization as the paper by Forsgren and Hagström (2007) illustrates. As regards the interrelationship between Multinational Enterprises (MNEs) and their Small and Medium-sized Enterprises (SME) suppliers as the paper by Jean (2007) argues, ICT applications on the one hand promise more transparent and efficient governance and gains for all parties but at the same time increase the power of the MNE purchasers and increase SME dependence. In the literature there is a recognition that ICT applications reinforce centralizing tendencies in MNE hierarchies (Cowling and Tomlinson, 2005; Kwangsoo et al., 2003). Some recent research in fact has suggested that the internet and digitalization is facilitating radical changes in the structure of big business (such as the growth of modular production contract manufacturing and the “flagship” multinationals (Nolan et al., 2002). However the paradoxical nature of this outcome is not usually stressed. Yamin and Sinkovics (2007) argue that ICT application involves a “control paradox” in the sense that by increasing the power of the centre the ICT application may simultaneously reduce or even destroy the organisational adaptability that is arguably a potential advantage of multinational corporations. The two other papers included in the special issue provide broader perspectives on the ICT paradox. Fikirkoca (2007) offers a critical assessment of the digital economy, based on an inter-disciplinary literature survey that brings together pieces of work that have previously been analysed largely in a separate manner. Finally the paper by Penz (2007) takes a fresh look at the Internet’s paradoxical nature from a consumer point of view. It is argued that some of the Internet’s paradoxical effects stem from socio-political and socio-cultural changes, for example, a power shift from companies to consumers, and normative and anti-normative behaviours.

Acknowledgements

Special thanks go to the CPoIB Editors, George M Cairns and Joanne Roberts who supported the Guest editor’s initiative and thus helped to make this special issue happen. Furthermore, the Guest editors are indebted to those colleagues who were prepared to invest time and effort to review the papers submitted to this special issue. Their contribution has been vital to the development of the papers and to the overall coherence of this special issue. The reviewers are listed in alphabetical order: Arne Floh, Wirtschaftsuniversität Vienna, Austria; Olli Kuivalainen, Lappeenranta University of Technology, Finland; Sharon Loane, University of Ulster, Ireland; Damian P. O’Doherty, Manchester Business School, UK; Ramon Ribera Fumaz, Universitat Oberta de Catalunya, Spain; Glenn R. Richey, The University of Alabama, USA; Anthony S. Roath, The University of Oklahoma, USA; Sami Saarenketo, Lappeenranta University of Technology, Finland; Isabelle Szmigin, University of Birmingham, UK; and Anna Zueva, University of Bradford, UK.

Rudolf R. Sinkovics, Mohammad YaminGuest Editors