Sanctions are a tool used by political actors to induce foreign countries, firms or individuals to alter their behavior. As nonmilitary coercive measure, they have the potential to disrupt the international business environment, often on short notice, and change the rules of the game. Synthesizing the available evidence on the economic and political impacts of sanctions, we explore how sanctions disrupt the institutional framework for international business and how firms respond to sanctions. Based on a review of available scholarly evidence, we discuss how theories of international business, such as institution-based view, resource-and knowledge-based view, resource dependency theory, and behavioral theories of the firm, can contribute to explaining the impact of sanctions. At the same time, we discuss how sanctions, as politically motivated disruptions, challenge some assumptions underlying these theories. Going forward, our research agenda on sanctions is likely to help firms and governments to strategize in a geopolitically sensitive world.

Knowledge management and manufacturing relocation have been treated as independent spheres. However, for a relocation to be fruitful, knowledge management needs to be incorporated. The purpose of this research is to shed light on the lack of knowledge management in dynamic manufacturing relocation. In particular, the research focuses on the ability to change, adapt and revert manufacturing relocation decisions, that is, the dynamic nature (or use) of the concept. A Swedish company was used as a case study. Nine in-depth interviews were conducted with key informants at the company's headquarters in Sweden and its factory in China to capture a dyadic perspective. The findings demonstrate that: (1) knowledge transfer is crucial to create/sustain competitive advantage in the offshoring and reshoring phase; (2) lack of knowledge transfer results in limited learning outcomes with operational and strategic consequences in the relocation; (3) resistance to knowledge transfer in the offshoring creates a knowledge gap that consequently leads to relocation ambiguity in the reshoring phase; and (4) companies need to develop knowledge management strategies to promote knowledge transfer and learn from their international relocation, to cope with relocation ambiguity. Our theoretical contribution introduces the knowledge ambiguity framework, which is a result of insufficient knowledge transfer in the dynamic manufacturing relocation. Even if an organization relocates efficiently, it can fail to take advantage of knowledge transfer and development as potential learning for the organization. 

Geopolitical tensions and a world where state interventions are driven by national security and ideology present novel challenges for emerging market multinational enterprises (EMNEs). Often, individual companies are targeted, and their corporate growth gets curbed. These phenomena are derived from non-market factors, which are generally absent in the springboard view of the international business discourse that explains the foreign expansion of EMNEs by viewing these firms as ambidextrous organisations capable of handling conflicting requirements. This research aims to understand the international expansion of EMNEs under geopolitical tensions by incorporating non-market factors into the ambidexterity model to enrich the springboard view. A case study of Huawei and its exclusion from the telecommunications industry in Sweden forms the empirical base of this research. The contributions are twofold. First, within the springboard view, the ambidexterity model can be upgraded by incorporating non-market factors that better explain the international expansion of EMNEs in changing geopolitical and business contexts. Second, the research highlights the management of EMNEs' subsidiaries while considering geopolitical tensions.

This paper first traces the evolution of the Tech Cold War to multipolarization in the context of major developments in the global economy, i.e. the ascent of China in the 21st century, antagonistic rivalry for technological supremacy between the United States and China, and the impending bifurcation of the world economy and its consequences. The paper then discusses the implications of the aforementioned developments for international business (IB) research and practice. Research topics include the Global North-South divide, nonmarket influences, government-MNE relationships, industrial policy and techno-nationalism, innovation in a multipolar world economy, the rise of middle powers, and innovation under geopolitical pressure.

Existing studies on Russian culture using the dominant dimensional theory of culture (e.g., Hofstede’s), in general, offer “stereotypical” characterization of that country’s societal culture but fail to capture the dynamics of cultural values that exist in Russian business and society. We argue that this weakness stems from the either/or logic associated with such an approach. We echo the call for improving the quality of cross-cultural research by going beyond Hofstede (Tung & Verbeke, 2010) through studying cultural paradoxes and their embedded contexts (e.g., Osland & Bird, 2000) in historical and contemporary Russia. To this end, we have applied Faure & Fang’s (2008) framework which builds on the holistic, dynamic, and paradoxical Yin Yang thinking to unravel the paradox inherent and changes to Russian cultural values over time. We find that underlying paradoxical values that traditionally coexisted in Russian culture during the Communist regime have been further reinforced as a consequence of Russia’s interactions with the rest of the world. In post-Communist Russia, traditional values have not disappeared; rather, they coexist and interact with new values as a result of cultural learning and knowledge transfer in global economy. We discuss the implications of these findings for future research.

Purpose

The purpose of this paper is to arrive at a different understanding of reshoring in Asia vis-à-vis the Western context of competitiveness, through a case study of the Swedish company FM Mattsson.

Design/methodology/approach

Empirical studies with semi-structured interviews have been conducted both in Sweden and China to gain an in-depth understanding of the case company’s reshoring activities.

Findings

The findings point at reshoring as a competitive means to respond to the dynamics of internal (firm-specific) and external (country-specific) factors. Reshoring comes as a dynamic process by reshuffling resources inside and outside of the firm that strives for continuous competitiveness. Organizations need to meet the challenges of changing environment, especially the dynamic business competition in Asia, and reshoring is a way.

Originality/value

This paper contributes to the literature by perceiving reshoring as a dynamic process of competitiveness development. Reshoring is not seen as one-off short-term decision-making on cost and location but as a long-term process in response to the dynamic internal and external challenges ahead.

This book chapter highlights the contradicting identities and value systems that Indians follow and the rationale behind the same. It discusses the concept of Ardhanarishvara in India, and yin and yang in China and how they help others appreciate the paradoxes of the East. The history of India is marked by continual contact with countless cultures of the world. The chapter shows how the Ardhanarishvara perspective provides a better understanding of the cultural considerations crucial to fostering business relations in India. It explores the paradoxical value systems that govern the Indian mindset and their impact on business behaviour. While the evidence of human settlement in the Indian subcontinent stretches far back in the history of human civilization, the settlements that took the form of urban civilization were arguably around the fertile land along the three rivers: Indus, Ghaggar-Hakra, and the extinct Saraswati.

Purpose The purpose of this paper is threefold. First, the paper demonstrates how inter-ocular testing (looking at the data) of Schwartz values from world values study (WVS) provides a surprisingly different picture to what the authors would expect from traditional mean comparison testing (t-tests, analysis of variance (ANOVA)). Second, the authors suggest that the ReVaMB model can be applied to an East Asian philosophical perspective. Relativity, the authors argue, is a factor when East Asian wisdom, philosophies and ideologies (Confucianism, Taoism, Buddhism and Legalism) drive outcomes such as work ethic. Third, the paper serves as an editorial to a special issue in CCSM on East Asian wisdom and its impact on business culture and performance in a cross-cultural context. Common themes are Yin Yang, how different cultures deal with paradox, and Zhong Yong, with accompanying concerns of how to conceptualise and deal with balance of opposites. Design/methodology/approach The authors adopted ten variables of the Schwartz values scales used in the WVS and subjected them to principle components analysis to reduce the number of variables. The authors found a two-factor solution: one relating to personal material success and adventure and excitement; another relating to success and personal recognition. The authors labelled these factors as Altruism and Hedonism. The analysis is based on an overall sample of 84,692 respondents in 60 countries. In addition to traditional statistical testing, the authors conduct inter-ocular testing. The authors also suggest that the ReVaMB model can be applied to East Asian wisdom. Findings Three recommendations help to arrive at more accurate conclusions when comparing groups: the authors recommend to aspire to consistent look and statistic. If the data distribution does not agree with the statistics, then the researcher should take a closer look. To avoid misinterpreting statistics and other analysis, the authors recommend inter-ocular testing, i.e. eyeballing data in a scientific fashion. The authors provide specific examples how to do that. The authors recommend to test for common-language effect size (CLE), and also recommend a new rule of thumb, i.e. a split of 60/40 as minimum difference to make any generalisation; 70/30 is worth considering. The rule of thumb contributes to better differentiation between real and not real differences. Originality/value The authors introduce two concepts: the inter-ocular test, which simply means to look at your data, and the Chinese word, ?? (Cujue) which roughly translates to illusion, wrong impression, or misconception. This study argues against accepting simplistic averages for data analysis. The authors provide evidence that an inter-ocular test provides a more comprehensive picture of data when comparing groups rather than simply relying on traditional statistical mean comparison testing. The word of caution is to avoid premature conclusions on group comparisons with statistical testing alone. The authors also propose an extension of the original ReVaMB model from a confucian orientation to a broad East Asian philosophical perspective. Culture does determine attitudes and behaviour which in turn contribute to the shaping of cultures, depending on situation, context, location and time. The context for a situation to occur should be tested as moderators, for example, between East Asian wisdom (Confucianism, Taoism, Buddhism and Legalism) and behavioural or attitudinal dimensions such as work ethic.

Purpose Drawing on Fang's (2012) Yin Yang theory of culture while taking up the roadmap proposed by Li (2016) for applying the epistemological system of Yin Yang balancing to complex issues in management research, in general, and to paradoxical issues, in particular, the purpose of this paper is to explore how organizations and individuals in the West can balance cultural paradoxes and manage culture dilemmas through the lens of Yin Yang wisdom. Design/methodology/approach The paper is based on a qualitative case study. Data are gathered through interviews, documents, and field observations in four subsidiaries of an Italian insurance multinational corporation and were analyzed according to the three parameters, i.e., situation, context, and time (Fang, 2012). Findings The findings show how the integration and learning from seemingly opposite cultures and sets of values lead the organization and individuals to balancing cultural paradox and managing cultural dilemma effectively. With regard to situation, the authors find that both organizations and customers choose the most relevant value(s) to take advantage of specific events or circumstances, and that different value orientations can coexist. As for context, the authors show that organizations can adapt their values either through suppression and/or promotion, which can foster individuals to find new balancing within the paradox. In terms of time, the authors show that the process of learning from other cultures over time can play a role in the shift of people's and organizations' choices of attitudes and value orientations. Originality/value The paper suggests the relevance and usefulness of adopting Yin Yang wisdom to uncover the dynamic process of cultural learning in Western scenarios.

Purpose - The purpose of this study was to explore an innovative strategy for studying the Brazilian negotiator's unique and paradoxical characteristics from a cultural point of view to acquire a better understanding of the nature of international business negotiations in Brazil. Design/methodology/approach - The study is of a qualitative nature, using a multiple-case study design at three levels (small-, medium-and large-scale negotiations). Interviews were conducted with Brazilian and German managers to capture the emic-etic view of the Brazilian negotiator. The Strategic Trinity Model was developed to assess the behavior of the Brazilian negotiator in agreement with three metaphors: African Capoeirista, Portuguese Bureaucrat and Indigenous Warrior. Findings - The three roles African Capoeirista, Portuguese Bureaucrat and Indigenous Warrior comprised similar as well as contradicting characteristics. The Brazilian negotiator chose naturally and even paradoxically from these role features, effectively negotiating any given situation, context and time. During the pre-and post-negotiation phases, traits of the African Capoeirista and Indigenous Warrior were the most salient. During the formal negotiation phase, however, the characteristics of the African Capoeirista and Portuguese Bureaucrat dominated. Research limitations/implications - International business negotiations in Brazil call for an in-depth comprehension of the paradoxical roles that local negotiators take on to achieve better negotiation outcomes. Originality/value - The present study unveiled the contradicting Brazilian negotiating style in international business negotiations, thus acquiring a better understanding of the negotiation process in the Brazilian market.