Search results

Rapid digital transformation underway represents both a risk and an opportunity for both policymakers and firms. This can address the risk and seize the opportunity by leveraging FDI to grow digital capabilities and competitiveness through a three-part strategy. First, launching Digital FDI enabling projects (DEPs) to create “digital friendly” investment climates through enabling policies, regulations, and measures. Second, using a “SMART” test as a heuristic before a full-fledged DEP is launched, which benchmarks their economy’s digital Skills, Market functioning, Access through connectivity, Restrictions, and Trust, and provides tools to tackle limiting factors. Third, reviewing FDI trends in six sectors that are important to grow the digital economy (two of which are proposed as essential, namely Communications and Software & IT services), with graphical evidence that can guide policymakers to prioritize policy reforms and investment promotion where they are relatively weak. Throughout, particular attention should be paid to growing the digital capacity of small and medium-sized enterprises (SMEs). A Sustainable Technology Board – modeled after the Financial Stability Board but oriented to cooperation over new technologies – could further help address techno-competition and other concerns over Digital FDI.

Crises are often studied in international business (IB) research as the external “context” for business strategies, but firms can also be active participants in the unfolding of crises. The study of crises in IB could benefit greatly from studying the role of multinational enterprises (MNEs) as active participants, rather than as mere passive actors, responding to exogenous events. History shows that IB crises typically unfold partially as exogenous processes, and partly as the result of MNE strategies. A multilevel and longitudinal approach to studying crises in IB is clearly necessary. This chapter considers the extent to which smaller events that preceded the present crisis – since 1989 – point to systemic problems in global governance. It also defines five overlapping lenses through which future IB studies can further create relevant insights on how to deal with crises: historic, macro, meso, micro and exogenous. The chapter finally serves as an introduction to the whole Progress in International Business Research volume by indicating the relevance of all parts and chapters that follow.