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Escape FDI and the Varieties of Capitalism: Why History Matters in International Business

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Abstract

This paper addresses the need for a stronger perspective of history in International Business research. In order to illustrate this matter, we will discuss the topic of ‘escape FDI’ as a motive for foreign direct investments (FDIs). While prior research suggests a connection between ‘escape FDI’ and an economy’s degree of societal coordination in a quasi-ahistorical manner, we will argue that ‘escape FDI’ is an issue that liberal and coordinated market economies alike have witnessed. In fact, the relevance of simple dichotomies, such as coordinated and liberal economies, seems to break down in the face of shifting institutional conditions that are bound to very specific periods. Quite consciously, the present paper combines social science and historical methodologies, in an effort to produce a synthesis that will benefit both approaches to understanding international business and its larger context.

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Notes

  1. Cf. the Journal Quality List by Harzing for instance: http://www.harzing.com/resources/journal-quality-list (accessed on 10 June 2017).

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Acknowledgements

The authors would like to thank Mira Wilkins, Geoffrey Jones, Krzysztof and Tomasz Obłōj, and Sevda Sparks for their helpful comments. Furthermore, the comments of the anonymous reviewers for MIR as well as for the 40th Annual Conference of the European International Business Academy (EIBA, 2014) have been much appreciated.

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Authors and Affiliations

  1. University of Toronto, Toronto, Canada

    Christopher Kobrak

  2. ESCP Paris, Paris, France

    Christopher Kobrak

  3. University of Stuttgart, Stuttgart, Germany

    Michael-Jörg Oesterle & Björn Röber

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  1. Christopher Kobrak
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  2. Michael-Jörg Oesterle
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  3. Björn Röber
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Correspondence to Björn Röber.

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Christopher Kobrak: Deceased.

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Kobrak, C., Oesterle, MJ. & Röber, B. Escape FDI and the Varieties of Capitalism: Why History Matters in International Business. Manag Int Rev 58, 449–464 (2018). https://doi.org/10.1007/s11575-017-0323-1

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