Background Concepts and Philosophy of International Business from World War II to the present

Since World War II international business has moved through three general episodes and now stands on the threshold of a fourth. These episodes are defined by the number of actors relevant to corporation decision making. The immediate postwar decade is characterized as a two-actor era – the firm itself and its overseas commercial associates. During the so-called growth years, of 1955 to 1970, increasingly the political impact of, and the political response to, corporate strategy entered the decision-making calculus. During the 1970s, the “time of trouble,” the parent governments became increasingly active. The new international order which began appearing around 1980 introduced the multi-actor era in which a wide variety of international organizations and interest groups became relevant to corporate decision making, thereby introducing a new degree of uncertainty. Generally, academic research and teaching have lagged the reality. Even now, much attention is focused on the multinational corporation, a special form of international business organization which appeared during the 1950s and 60s and which now may be giving way to the international service and trading companies. The conclusion is that little research is being done on the internal dynamics of international business.© 1981 JIBS. Journal of International Business Studies (1981) 12, 13–21