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This paper aims to explore the ambiguity and limitations of measuring firm-level multinationality (FLM) using theoretical and empirical comparisons of existing methods. The paper puts forward a list of five key aspects that collectively serve as a tool for researchers to select the most appropriate method for future research and as a basis for the future development of methods.

Firstly, the author reviews existing methods of measuring FLM and consolidates findings into five key aspects. Secondly, the author uses the aspects to compare existing methods theoretically, and subsequently, the author groups them into three distinct streams. Thirdly, the author compares existing methods across a sample of the 35 largest European MNEs by sales in 2020 to identify and demonstrate the ambiguity and limitations of these methods.

The author identifies the five key aspects of measuring FLM: framework, aggregation, segmentation, metrics and indicators. Using empirical comparison, the author empirically confirms the limitations highlighted in the literature and shows the differences and inconsistencies among methods, which cause confusion rather than clarity in the extant literature. Additionally, the author emphasises that three distinct streams further drive the debate on the regional/global nature and present further limitations of methods not mentioned in the literature to date.

This paper provides the most comprehensive review of the existing literature on FLM, resulting in five novel aspects of measuring FLM. The analysis of a sample of 35 European firms demonstrates and identifies the ambiguity and limitations of FLM-measuring methods.

“First principles” of international business (IB) thinking should be applied systematically when assessing the functioning of internationally operating firms. The most important first principle is that entrepreneurially oriented firms seek to create, deliver and capture economic value through cross-border linkages. Such linkages invariably require complementary resources from a variety of parties with idiosyncratic vulnerabilities to be meshed. Starting from first principles allows bringing to light evidence-based insight. For instance, most companies are not global and even the world’s largest firms rarely change the location of key strategic functions. International new ventures (INVs), emerging economy multinational enterprises (MNEs) and family firms face unique vulnerabilities but also command resources that can be used to create value across borders. The quest for “optimal” international diversification appears to be a futile academic exercise, and in emerging economies with institutional voids, relational networks – and more broadly, informal institutions – are unlikely to function as scalable substitutes for formal institutions. In global value chains (GVCs), many lead firms and their partners have been able to craft governance mechanisms that reduce bounded rationality and bounded reliability challenges, and it is also critical for them to use governance as a tool to create entrepreneurial space. Finally, many of the world’s largest companies have been on successful trajectories toward reducing their climate change footprint for a few decades. But these firm-specific trajectories are fraught with challenges and cannot just be imposed via unilateral, macro-level targets decided upon by individuals and institutions lacking a clear understanding of innovation and capital expenditure processes in business.

This review summarizes the empirical literature dealing with anti-corruption disclosure as this specific type of disclosure has attracted a great deal of attention in accounting literature.

Keywords used to collect relevant papers from numerous electronic databases (e.g. Science Direct, Emerald, Wiley-Blackwell, Springer and Taylor and Francis) include “anti-corruption reporting” “anti-corruption disclosure”. The final sample encompasses a set of 35 empirical studies published between 2015 and the beginning of 2024.

The summary of reviewed studies suggests that anti-corruption empirical studies are mainly cross-country investigations. Two streams of research are identified: (i) the determinants of anti-corruption disclosure and (ii) the economic consequences of anti-corruption reporting. With respect to the first stream of research, six main categories of determinants are identified (corporate characteristics, corporate governance attributes, informal institutions, stakeholders’ pressures, country institutional effect and regulation effect). With respect to the second stream of research, findings show that anti-corruption reporting is negatively associated with profitability, reduces earnings management and enhances corporate social reputation.

With respect to regulators, this review sheds light on the importance of anti-corruption disclosure in the fight against corruption. It also suggests that the adoption of some regulations like the Directive 2014/95/EU in the European Union or the 2010 UK Bribery Act have contributed to more transparency. With respect to investors, the existence of some determinants of anti-corruption reporting (e.g. United Nations Global Compact membership, cross-listing, multinationality, board independence) may signal the adequacy of corporate reporting policy and that management is following an adequate strategy to fight corruption and enhance transparency.

This review offers future research avenues for accounting scholars with respect anti-corruption disclosure literature.

Multinational enterprises (MNEs) own and control technological resources and capabilities that make them critical actors in accelerating the transition toward net zero. Even beyond the energy sector, stakeholders are putting increasing pressure on MNEs to reduce the carbon intensity of their operations, that is, to improve their carbon performance. While there is unambiguous evidence that national climate policy is a critical catalyst for long-term carbon performance improvements, there is limited research on how MNEs’ carbon strategies react to climate policies. This chapter reviews the concepts, drivers, and strategies connected to carbon performance in the broader sustainability and management literature to clarify potential complementarities to international business (IB). The authors then highlight how MNEs will face increasing institutional complexity along two dimensions: (1) the structural diversity of institutional environments and (2) institutional dynamism, primarily reflected by public policy. The proposed conceptual framework maps these two dimensions to national and subnational levels, and the authors present two data sources that allow the quantitative analysis of country differences in the diversity and dynamism of national climate policy. The authors conclude that there are ample opportunities for IB researchers to explore MNEs’ strategic reactions to climate policy and to inform policymakers about the consequences of national climate policy in the global economy.

This chapter discusses how the real options theory can be useful for understanding the adoption of human resources management (HRM) practices. The authors review how the real options theory has provided insights into the processes through which firms manage uncertainties involved in the adoption of HRM practices. The authors offer propositions for future HRM research from the real options perspective. The authors contend that analyzing HRM practice adoptions through the lens of real options theory can enhance our understanding of the mechanisms through which firms choose which HRM practices to adopt and how they adjust the timing, scale, and methods of investment in these practices. Specifically, the authors suggest that differences in information relevant to valuation of HRM options are the source of distinct choices of HRM options across firms. Finally, the authors propose advancing knowledge on HRM practice adoptions by using a portfolio of options approach, as well as considering factors like competitors, path dependence, and switching options.

This chapter analyzes the efficiency levels of a circular economy (CE) with an emphasis on transaction costs. It examines the governance aspect of CE activities in comparison to the predominant linear value creation. Extant CE research in business studies tends to be descriptive and lacks a theoretical foundation, particularly in understanding CE management. Transaction cost theory explains efficiency in economic organizing, lending itself to the study of arrangements that maximize resource efficiency at continued economic virtue. The conceptualization proposes that CE transaction costs are greater than those within the linear economy (LE), primarily due to the uncertainties about reciprocal dependencies, looping material complexities, exchanging novel information, and increased contracting efforts. Geographically bounded and institutionally homogeneous CE initiatives may curb these rising costs. By bringing efficiency concerns into CE analysis, the chapter demonstrates the applicability of transaction cost theory and highlights CE relevance to international business by pointing out spatial choice implications.

Foreign subsidiaries of multinational enterprises (MNEs) operate in complex and competitive international environments, implement market and non-market strategies, manage resources and value-added activities and contribute to the overall performance of their parent firms. Thus, the research question on the determinants of MNE foreign subsidiaries’ performance is of interest to managers and academic researchers. The empirical literature has flourished over the recent decades; however, the domains are fragmented, and the findings are inclusive. The purpose of this study is to systematically review, analyse and synthesize the empirical articles in this area, identify research gaps and suggest a future research agenda.

This study uses the qualitative content analysis method in reviewing and analysing 150 articles published in 24 scholarly journals during the period 2000–2023.

The literature uses a variety of theoretical perspectives to examine the key determinants of subsidiary performance which can be grouped into six major domains, namely, home- and host country-level factors; distance between home and host countries; the characteristics of parent firms and of subsidiaries; and governance mechanisms (the establishment modes and ownership strategy, subsidiary autonomy and the use of home country expatriates for transferring knowledge from the headquarters and controlling foreign subsidiaries). A range of objective and subjective indicators are used to measure subsidiary performance. Yet, the research shows a lack of broader integration of theories and presents inconsistent theoretical predictions, inconclusive empirical findings and estimation bias, which hinder our understanding of how the determinants independently and jointly shape the performance of foreign subsidiaries.

This study provides a comprehensive, nuanced and systematic review that synthesizes and clarifies the determinants of subsidiary performance, offers deeper insights from both theoretical, methodological and empirical aspects and proposes some promising avenues for future research directions.

This paper aims to explore the relationship between strategic internationalization decisions and dynamic capabilities deployment for the internationally growing firm (IGF). Dynamic capabilities refer to a firm’s ability to adapt proactively to a changing business environment, emphasizing the importance of “doing the right things” rather than just “doing things right.

Literature-based, this paper proposes a model that links internationalization decisions and dynamic capabilities deployment, offering valuable insights for both research and practical application.

The study highlights that the IGF – focused on expansion and growth abroad – faces unique complexities that demand “doing the right things” in terms of strategic internationalization decisions. Three critical organizational capabilities – knowledge transfer, knowledge recombination and learning capabilities – are mechanisms linking strategic internationalization decisions to dynamic capability deployment in the IGF. These organizational capabilities enable the IGF to act entrepreneurially and deploy dynamic capabilities across borders.

The model provides a practical framework illustrating the interconnectedness of strategic internationalization decisions and their combined effects on the ability of IGF to deploy dynamic capabilities to adapt to a changing global environment.

This research addresses a gap in the literature, challenging the conventional assumption that dynamic capabilities precede firms’ decisions to internationalize and that these dynamic capabilities can only be enhanced abroad.

It is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners is to give them exclusive territories. Unfortunately, there is a lack of knowledge regarding the determinants of territorial exclusivity. This study aims to investigate the relationship between organizational culture and territorial exclusivity and the moderating role of firm size in this relationship.

Survey data were collected from manufacturing small and medium-sized enterprises (SMEs) in Japan. To test the hypotheses, a regression analysis was conducted using the ordinary least squares technique.

Empirical evidence shows that the cultural values of collectivism and uncertainty avoidance influence territorial exclusivity; collectivist exporters are likely to use territorial exclusivity, whereas exporters with high uncertainty avoidance are not likely to use it. Furthermore, the larger the firm size, the smaller the impact of cultural values on territorial exclusivity; this suggests that large SMEs do not rely on their organizational culture to make decisions about exclusive territories.

The export marketing literature emphasizes the advantages of exclusive territories. By contrast, the channel management literature suggests that exclusive territories also have disadvantages. As exclusive territories have both advantages and disadvantages, it is crucial to answer the following question: What kinds of exporting manufacturers grant exclusive territories to their foreign channel partners? By addressing this question, this study contributes to a better understanding of export channel strategy.

This is a response to “Taming wicked problems”, a paper recently published in CPOIB in which modern slavery is framed as a wicked problem. The purpose of this study is to convey the author’s appraisal of its contribution to policymaking regarding modern slavery in global supply chains.

The author engages in a discursive review of “Taming wicked problems”, taking inspiration from its perceived strengths and weaknesses to expand on the problem of modern slavery as a challenge to international business (IB) researchers.

“Taming wicked problems” is welcomed as a provocative contribution to modern slavery research in IB, although it is perceived to give too little critical attention to the problem of modern slavery itself.

This is, by design, a subjective assessment of the treatment of modern slavery and policy from the perspective of an IB researcher who has previously studied the phenomenon without a wicked problem framing.

Modern slavery is a serious problem for IB scholars, as they have failed to extrapolate it from their analysis of international business strategy. This paper is intended to advance the disciplinary defence of vulnerable workers exploited to the ultimate benefit of MNEs.

IB must engage critically with international business strategies that heighten the risk of human rights violations. The persistence of modern slavery disadvantages all persons in employment.

This paper seeks to better define the offense implicit in modern slavery so to inform critical IB research into its causes and deterrence.