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

Author

Listed:
  • Christopher Kobrak

    (University of Toronto
    ESCP Paris)

  • Michael-Jörg Oesterle

    (University of Stuttgart)

  • Björn Röber

    (University of Stuttgart)

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.

Suggested Citation

  • Christopher Kobrak & Michael-Jörg Oesterle & Björn Röber, 2018. "Escape FDI and the Varieties of Capitalism: Why History Matters in International Business," Management International Review, Springer, vol. 58(3), pages 449-464, June.
    • Handle: RePEc:spr:manint:v:58:y:2018:i:3:d:10.1007_s11575-017-0323-1
    DOI: 10.1007/s11575-017-0323-1
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    Cited by:

    1. Becker-Ritterspach, Florian A.A. & Lange, Knut S.G. & Allen, Matthew M.C., 2022. "Dominant modes of economic coordination and varieties of firm internationalization support," International Business Review, Elsevier, vol. 31(3).
    2. Gregory Jackson & Richard Deeg, 2019. "Comparing capitalisms and taking institutional context seriously," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 4-19, February.
    3. Decker, Stephanie, 2022. "Introducing the eventful temporality of historical research into international business," Journal of World Business, Elsevier, vol. 57(6).
    4. Björn Röber, 2020. "Escalating internationalization decisions: intendedly rational, but only limitedly so?," Business Research, Springer;German Academic Association for Business Research, vol. 13(2), pages 455-484, July.
    5. VASYECHKO Olga, 2021. "A Triad of Driving Forces Behind FDI Patterns," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.

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