The politicized nature of international business

The politicized nature of international business

26 January 2024 | Sjoerd Beugelsdijk, Yadong Luo
The editorial discusses the growing politicization of international business (IB) research, emphasizing the shift from the globalization era to a more politically driven landscape. Thirty years after Boddewyn and Brewer (1994) highlighted the political dimension of IB, the field now focuses on issues like techno-nationalism, de-globalization, and trade restrictions. Major economies are prioritizing national security and economic independence, altering the traditional focus on interdependent exchanges. This shift has led to a surge in research on the political aspects of IB, including the role of the state, political risk, and the impact of geopolitical dynamics on firms. The editorial argues that the political nature of IB is central to understanding contemporary global economic developments. It calls for a re-evaluation of IB theory to account for the qualitative differences in political regimes and the role of the state in shaping international business. The concept of "distance" in IB research, which previously focused on geographic, cultural, and institutional differences, is now being re-examined in light of the increasing importance of political factors. The editorial highlights the need for IB scholars to develop theories that reflect the complexities of the current geopolitical environment, including the impact of national policies, the role of multinational firms in geopolitical strategies, and the challenges posed by the politicization of global supply chains. It also emphasizes the importance of addressing the implications of domestic politics on international business and the need for firms to adapt to the new realities of a more politically charged global landscape. The editorial concludes by advocating for a more comprehensive and dynamic approach to IB theory, one that recognizes the fundamental role of political factors in shaping international business and the need for scholars to continue exploring the evolving nature of the field.The editorial discusses the growing politicization of international business (IB) research, emphasizing the shift from the globalization era to a more politically driven landscape. Thirty years after Boddewyn and Brewer (1994) highlighted the political dimension of IB, the field now focuses on issues like techno-nationalism, de-globalization, and trade restrictions. Major economies are prioritizing national security and economic independence, altering the traditional focus on interdependent exchanges. This shift has led to a surge in research on the political aspects of IB, including the role of the state, political risk, and the impact of geopolitical dynamics on firms. The editorial argues that the political nature of IB is central to understanding contemporary global economic developments. It calls for a re-evaluation of IB theory to account for the qualitative differences in political regimes and the role of the state in shaping international business. The concept of "distance" in IB research, which previously focused on geographic, cultural, and institutional differences, is now being re-examined in light of the increasing importance of political factors. The editorial highlights the need for IB scholars to develop theories that reflect the complexities of the current geopolitical environment, including the impact of national policies, the role of multinational firms in geopolitical strategies, and the challenges posed by the politicization of global supply chains. It also emphasizes the importance of addressing the implications of domestic politics on international business and the need for firms to adapt to the new realities of a more politically charged global landscape. The editorial concludes by advocating for a more comprehensive and dynamic approach to IB theory, one that recognizes the fundamental role of political factors in shaping international business and the need for scholars to continue exploring the evolving nature of the field.
Reach us at info@futurestudyspace.com