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This paper aims to apply a risk/uncertainty lens to corruption to explore how different types of corruption (formal vs informal) in a multinational enterprise’s (MNE) operating environment have different relationships to firm performance.

This paper uses a portfolio approach to measure the formal and informal corruption impacts of an MNE’s entire set of operating locations and test the hypotheses using both accounting- and market-based measures of performance on a sample of 648 firms.

This study hypothesizes and finds that because formal corruption represents risk, it is typically included in the a priori evaluations of trade-offs between market attractiveness and costs made by MNEs prior to market entry, higher formal corruption in the firm’s environment is positively related to its financial performance. Conversely, the uncertainty associated with the generally intangible and pervasive nature of informal corruption prevents similar, accurate cost consideration before entering the market, resulting in a negative relationship between higher levels of informal corruption and firm performance.

This study provides unique empirical support for the notion that MNEs can both gain and lose by investing in corrupt institutional environments, grounded in an understanding of the differences between risk and uncertainty, reinforcing the importance of considering the potential impacts of both the formal and informal dimensions of corruption in a firm’s operating environment.

The purpose of this paper is to explore the viability of shifting foreign direct investment (FDI) from China to Central and Eastern European (CEE) countries in light of recent geopolitical and economic challenges. By analyzing case studies, it argues that CEE nations offer a compelling alternative for Western European businesses, with stronger intellectual property protection, political stability and alignment with European Union (EU) sustainability goals. The paper provides insights for firms and policymakers on mitigating risks and enhancing business operations by pivoting toward the CEE region, offering practical recommendations for adapting to shifting global trade dynamics.

The design methodology uses the case study approach to analyze the shift of FDI from China to CEE. This method examines the geopolitical, economic and legal contexts influencing business decisions, using real-world examples of Western European companies that have made this transition. The case studies highlight key factors in decision-making and the benefits of relocating investments to the CEE region.

The study identifies several advantages of the CEE region over China for Western European firms. These include geographic proximity, similarities in business values and purposes, environmental accountability, trustworthiness in business, enforceable noncompetition rules, lower risks of counterfeiting, reduced political and administrative risks, lower risks of intellectual property theft and reduced risks of negative publicity.

The findings suggest that Western European firms should consider redirecting their FDI to the CEE region to mitigate risks associated with investing in China. This move could offer long-term benefits despite short-term complications.

This paper contributes to the FDI theoretical framework by enhancing the cultural, administrative, geographic and economic (CAGE) distance framework. It provides a unique perspective on the shifting dynamics between Europe and China and highlights the potential of the CEE region as a viable alternative for FDI.

This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found in India are less of a deterrent to investments from home countries with high levels of institutional development than from home countries with similar institutional voids. Overall, foreign investments in India are found to be significantly related to the strength of institutions within home countries. The levels of both approved and realized foreign direct investment (FDI) are strongly influenced by economic factors and home country regulative institutions, and weakly influenced by home country cognitive institutions. When considered separately, the cognitive institutions and regulative institutions within a given home country each significantly influence the level of approved/realized FDI into India. However, when considered jointly, only the strength of regulative institutions is predictive of FDI inflows.

The intent of EC 92 (European Community, 1992) is to unite Europe into a gigantic trading block and turn it into the dominant world trading partner. Presumably European corporations will then be able to compete head to head with Japanese and American firms. We predict, however, that instead of being a boon to European competitiveness EC 92 will have the opposite effect. Our prediction is based on three assertions: (1) a unified Europe will become protectionist, thereby encouraging foreign direct investment and increased competition in its home markets; (2) a new, unified Europe is a far more favorable business environment for American and Japanese multinational corporations (MNCs) than for European companies; and (3) most European firms are not strategically or operationally equipped to compete in the new EC environment.

The purpose of this paper is to use a theoretical framework (institutional theory) to predict international market selection (IMS) for the direct selling industry.

The authors use independent variables taken from institutional theory to predict IMS for the direct selling industry, allowing the authors to show the relationship between institutional theory – defined independent variables and the relative attractiveness of international markets. The model is applied to a broad sample of 51 developed and emerging nations that comprise 91 percent of worldwide GDP.

The authors found that the hypotheses were confirmed. Institutional theory – defined independent variables did a good job of predicting the relative attractiveness of international markets.

The authors used cross sectional country level data to validate their model. One major implication: institutional theory appears to do an excellent job of predicting IMS in contrast to geographic proximity or cultural similarity for the direct selling industry.

Managers should consider formal and informal aspects of the institutional environment, when selecting new international markets.

In contrast to most IMS papers, the authors apply a theory to predict IMS outcomes, helping to provide greater potential generalizability. The authors show that selected dimensions of institutional theory do a good job of predicting IMS for the direct selling industry. Future efforts may wish to apply institutional theory to new IMS contexts. The authors conclude with managerial implications.

Conventional theories of market entry assume choice availability. This investment assumption is subject to challenges in the power generation market of an emerging economy where the host government controls most key resources and market entry choices. With such constraints, entrants become heavily dependent on their host country partners. This study investigates how the resource dependency frameworks explain better in respect of some US power generation firms that manage to operate electricity facilities in China whereas some have to abort. Using cross‐case analysis, patterns emerged illustrate how two groups of entrants manage key resources differently.

We examine the citations from four international business (IB) journals over 2000‐2004 to show the areas, the journals, and the institutions that impact IB research. The leading works that influence IB research are primarily management journals, scholarly books, and IB journals. IB research is published in non‐IB journals, as well and this has influenced the recent research in IB journals. U.S. and non‐U.S. academic institutions and non‐academic organizations are among the top 100 institutions that impact IB research, indicating that this research is a truly global endeavor. Finally, recent IB research is influenced more by recent published research than by past research. Scholarly books have become less influential, while the economics, finance, and marketing journals show no change in the influence on IB research over time.

Multinational enterprises (MNEs) play a dominant role in the international business (IB) literature. Traditionally, by far the majority of IB studies deal with issues at the micro level of the individual MNE, or at the meso level of a sample of individual MNEs in industries. This paper focuses on the impact of MNE behavior through foreign direct investment (FDI) on a country’s international trade, and vice versa. In so doing, this study responds to a recent plea for more macro‐level studies in IB into the effect of MNE behavior on the macroeconomic performance of countries as a whole, particularly developing and emerging economies. In the current study, we focus on the largest developing or emerging economy of all: China. Applying sophisticated econometric techniques, we unravel the causality and direction of FDI‐trade linkages for the Chinese economy in the 1980‐2003 period.

Based on fifteen years of data on the annual Academy of International Business (AIB) best dissertation Farmer Award finalists, we find that these dissertations were done at a range of North American universities. Interestingly, dissertation topics differed from the topics covered in the three top IB journals with five‐sixths of the topics in management, organization, economics, or finance and two‐thirds set in a single country or region (U.S., Japan, North America, and Western Europe). Survey research is the most common methodology but analysis of secondary data is growing. As expected, the finalists are on average an extraordinarily prolific group.