International Business Political Behavior

In: Business and Management

Submitted By fjabeen
Words 10811
Pages 44
® Academy oi Management Review
1994, Vol. J9. No. 1. 119-143.

Baruch College
Georgetown University
Alternative assumptions are advanced regarding the political nature of international business and the role of government as a factor of production, which firms must manage in their international valueadded chains. Based on a model oi business political behavior, various propositions are developed regarding the interactions among firm, industry, and nonmarket factors as well as the impact they have on various forms and intensities of political behavior, as affected by strategic objectives. Finally, the sfrategic-theorizing implications of such behavior are discussed in the context of the recent emphasis on resource-based models of strategy management.

Research in international business (IB) is much more infused with a consideration of political factors than its domestic counterpart. Authors of
IB studies have constantly mentioned and even emphasized government as a variable, rather than a constant or given, because international firms
(exporters, importers, licensors, foreign direct investors, etc.) operate under a great variety of evolving political regimes that have an impact on these firms' entry, operation, and exit.
When IB topics were first researched in a policy-oriented manner,
Fayerweather (1969) stressed "the accommodation of interests and the resolution of conflict" between international firms and political actors at home and abroad as one of the four key decision areas in this policy field—besides those concerning the transmission of resources, relations with host societies, and the handling of fragmentation and unification in multicountry operations. Related managerial treatments of international political factors and…...

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