CentreforInternationalBusinessUniversityofLeeds(CIBUL)KeyissuesinthefutureofinternationalbusinessresearchPeterJBuckley2FutureResearchDirectionsinInternationalBusinessAbstractThispaperexaminesthedomainofinternationalbusiness–discussingitsdisciplinarybasisandthelevelofanalysisinvolvedanditexaminestherelationshipbetweentheoryandobservation.Itbrieflyreviewspasttopicsininternationalbusinessresearchandarguesthatfocusona“bigquestion”hasbeenafeatureofthepastsuccessofresearchinthisarea.Itsuggeststhatthereareproblemsininternationalbusinessretainingitsvibrancybecauseofthetrendtowardsotherdisciplinebasedtheoriesfocusingdirectlyontheissuesthathavebeenthetraditionaldomainofinternationalbusiness.3TheDomainofInternationalBusinessLevelofManagerAnalysisFirmIndustryVastheterogeneityineachcategoryMacroEnvironmentDisciplineEconomics,Sociology,SocialPsychology,etc.FromBuckley&Lessard(2005)4ArecursiveviewofresearchinInternationalBusiness“THEORETICALROCKS”CONSTRUCTSMAPS“ConceptPush”GeneralisationObservationHypothesesTesting“Problem/ObservationPull”Note:ThisappliestobothindividualresearcherandresearchcommunitylevelsFromBuckley&Lessard(2005)5PastMajorTopicsinInternationalBusinessResearchResearchAgendaApproximateDatesTopicsCountryFocus1ExplainingFlowsofFDIPostWWII–to1970sUSFDIinEuropeManagerialIssuesofInvestingAbroadEurope[USEurope](LatinAmerica)(Canada)2.ExplanationofExistence,StrategyandOrganizationofMNEs1970’s–1990TheoriesofMNEStrategiesofMNEOrganizationofMNEForeignMarketServicingStrategiesSmallerfirmsinIBInternationalEconomicIntegrationLDCSJapan(MNEsfromLDCS)4LittleDragons3.InternationalizationtoGlobalisation“Newforms”ofInternationalBusinessMid1980’s–2000JointVenturesAlliances(M&A?)CompetitivenessMeaning(s)ofglobalization‘Bornglobals’EasternEurope‘AsianCrisis’China6CurrentresearchagendainInternationalBusinessResearchAgendaApproximateDatesTopicsCountryFocusTheBigQuestion?[LegacyIssuesonly?]2000onwardsM&A?KnowledgeManagement?GeographyandLocation?Globalization?Fragmentation?NewInstitutions(NGOS)?CulturalDifferenceandInternationalBusiness?ChinaIndia?7Earlyinternationalbusinessissue-theoryinteraction1970s2000FinanceTheoryLocationTheoryOrganisationTheoryVirtualFirmsIssueDrivenInternationalBusinessTheoryDevelopmentDisciplineBasedTheoryDevelopmentTradeandFDITradeTheoryIndustrialOrganisationTheoryTheoriesofFDICoaseantheoryoftheFirmTransactionCostEconomicsResourceBasedTheoriesoftheFirmEmergingEconomiesTransnationalFirmandVariantsInternationalManagementInternationalJointVenturesInternalisation/EclecticTheoryProductCycleHypothesisDominanceofMNEMonopolyPowerofMNCs1950s1960s1990s1980s8TheMissingMiddleTransactionCostEconomicsGeographicalLocationTheoryRelationshipMarketingandBrandingInternalisationTheoryofMNEDisciplineBasedTheoryIssuesOutsourcing/OffshoringEmergingMarketsEmergingLocations(China/India)VirtualFirmGlobalBrandingandDistributionResourceBasedViewInternationalBusinessTheory9IBasa‘meltingpot’IBasa‘meltingpot’[oftenprojectionoftrendsonsingleissues–connectionsoftenignored].Connectivity–seeingthebigpictureascomparativeadvantageofIBscholars.Widemethodologyandwidescopee.g.beyondthefirm–impactofMNEsoutsidethefirm.NGOsetc.EthicalissuesinIBandglobalisation.10…..IBasa‘meltingpot’Isthisenough?Newfactors–demographyandmigration.Areasoflongrunneglect–e.g.finance.11TheBigPictureGlobalisationandDevelopmentMNE–globallyintegratedproductionanddistribution.Massmediacontrol.TheRenaissanceofGeographyinBusinessInternetGeography.12NewIBstrategyFlexibilityRealOptionsGloballyintegratedproductionanddistributionsystemsKnowledgemanagementReappearanceof(international)finance13KeyelementsoftheglobalfactoryFlexibility–theabilitytoreallocateresourcesquicklyandsmoothlyinresponsetochange.Responseto:(a)increasingvolatilityarisingfromglobalisation;(b)oppositiontomonopolyincludinginternalmonopoly.ResilienceSystemsareresilientiftheycanabsorbshocks.Firmscansurvivedownturns,crisesandpanics.14GloballyDistributedOperationsEngineeringContractorDesignContractorDesignEngineeringBrandingMarketingBRANDOWNERR&DContractorCoreFunctionsOutsourcedPartsSupplierContractAssemblerPartsSupplierContractAssemblerPartsSupplierPartsSupplierDistributedManufacturingWarehousing,DistributionandAdaptationLocalmarketAdaptationPartsSupplierPartsSupplier15Emergingcountries:Threestrategiestobuildupglobalfactories1.Gradualist–buildupelementsonastep-by-stepbasis.2.Acquireexistingglobalfactories(SovereignWealthFunds)3.Buildanalogueofglobalfactorywithincountry,theninternationaliseit(largecountriesonly).16NewManagementSkills-“Fine-slicing”-ControlofInformation-InterfaceCompetence=Anew,moresubtle,managementstyle“Youdon’thavetoownsomethingtocontrolit”17RoleofHeadquartersControllingIntelligence“Orchestration”18FundamentalsInstitutions(andnewinstitutions)CultureResourceEndowmentsGeography19OriginalSourcesBuckley,PeterJ.(2002)“Istheinternationalbusinessresearchagendarunningoutofsteam?”JournalofInternationalBusinessStudies,Vol.33,No.2,pp365-373.Buckley,PeterJ.(ed)(2004)WhatisInternationalBusiness?,Palgrave,Basing