*Call for Papers*

*The Journal of World Business Special Issue:*

*(New: Paper Development Workshop at London School of Economics, January 27
– 28, 2014, with Prof. Steve Kobrin, the Wharton School, as Key Note

* *

*Back to the Great Illusion? *
*Global Governance and International Nonmarket Strategies *
*for the 21st Century*

Jonathan Doh
Villanova School of Business
Villanova University
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Steven McGuire
School of Management & Business
Aberystwyth University
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Toshiya Ozaki (corresponding contact)
College of Business, Rikkyo University
Tokyo, Japan 171-8501
Tel: +81-3-3985-4077
Email: [log in to unmask]

*The Journal of World Business *is soliciting papers to contribute to a
special issue on the state of global governance and international nonmarket
strategy in the 21st century. This special issue is focused on exploring
the antecedents, processes and outcomes of the interaction between global
governance systems and institutions and the international nonmarket
strategies of multinational enterprises (MNEs).


The global political economy is increasingly integrated and interdependent.
In his book, *The Great Illusion *(1910), Norman Angell advanced the view
that because of the increasing global interdependencies that linked nation
states together in the first part of the 20th century, countries would
hesitate before engaging in conflicts because they would be self-
destructive. The two World Wars proved Angell wrong, and revealed one
critical condition that was missing in his account: stable and sustainable
economic interdependence requires well designed and well founded
institutions on which cross-border commercial activities may flourish. The
business community, especially MNEs in the United States and Europe, played
an important role in helping policy makers on both sides of the Atlantic to
design and develop the postwar international economic system. It is
significant to note that these firms assumed the role not simply because of
their altruism or social responsibility, but because of their self-interest
in sustained international growth, facilitated by the Bretton Woods
inspired global governance system. Similarly, the more recent rise of
emerging markets MNEs owes much of their international success to the
international regulatory system that catalyzed market activity both within
and between home country economies.

Global business environments, and especially institutional arrangements to
govern and sustain global trade and commerce, increasingly show strains and
fissures. As Kobrin (2009) has argued, we may be entering a new uncharted
phase of opportunities and challenges characterized by new types of
participants (governments, firms, nongovernmental organizations) who have
more diverse and unaligned interests, purposes and preferences than in
previous eras. This complex environment is also characterized by more
difficult and vexing issues – climate change, cyber-terrorism, and
financial dependencies and volatility, to name a few – that may undermine
traditional forms of global governance and render cooperation more
difficult. The advancement of information and communication technology
(ICT), which lowers barriers and allows firms and individuals to equip
themselves with information and intelligence, exacerbates these challenges,
but also offers new opportunities for addressing them.

The international business field has long been concerned with the structure
and nature of business-government relations in the global environment and
the institutional architecture that governs firm-state relations. In the
area of MNE-government interactions, the seminal work of Vernon (1971),
Fagre and Wells (1982), and Kobrin (1987) explored the delicate
interactions among states and firms as they navigated an increasingly
integrated global economy. More recent literature has addressed how
governments shape the varying institutional contexts – both national and
supranational (Henisz, 2002) – that firms encounter, as well as how firms
themselves are able to adapt and adjust – and influence – the emerging
institutional environments (Boddewyn & Brewer, 1994; Kostova & Roth, 2002).
With the proliferation of additional actors in global business-government
interactions, international business scholars have incorporated
international institutions (IMF, World Bank, WTO) as formal participants in
the traditional business-government bargaining model (Prakash, 2002;
Ramaurti, 2001). Most recently, the emerging presence of civil society and
nongovernmental institutions as important players in these increasingly
complex and multifaceted business-government-institutions-nongovernmental
relationships has drawn the attention of IB scholars who seek to broaden
and expand the scope of the global business system in which MNEs operate
(Boddewyn & Doh, 2010; Kobrin, 1998b; Teegen, Doh & Vachani, 2004; Lucea,

Dramatic changes in global governance systems and processes and the
dissolution of traditional global alliances are reshaping and reformulating
the system of global governance that has dominated the post-war period
(McGuire, 2012). For example, the decades-long global coalition of
countries and firms in support of increasingly liberalized trade has
apparently fractured, climate change negotiations have reached an impasse,
and there is little consensus as to how best to manage and regulate the
increasingly complex and interlinked global financial system. Given this
reality, it is appropriate to revisit some of the assumptions and
approaches that have prevailed in the treatment of global governance
systems and the actors that shape and are shaped by it. Further, it is
important and timely to explore the current state of governance for global
business, the sustainability of its underlying institutions, and
alternative governance arrangements that may be emerging from private and
nongovernmental actors. In addition to these macro-level considerations,
the special issue will focus on the nonmarket strategies (Baron, 1997) of
firms responding to these changing conditions, and how MNES are themselves
influencing the systems that are emerging. Finally, just as the governance
system for global business may be undergoing a fundamental shift, studies
of international business have come a long way in their efforts to
integrate various disciplines and approaches in examining these governance
systems and understanding consequent firm nonmarket strategies. We believe
the time is ripe to look back and reflect on these achievements, but also
to call attention to unanswered questions.

Kobrin (1977, 1978, 1987, 1998a, 1998b, 2004, and 2009) is one of the key
contributors to our understanding of the interactions between politics,
economics and international business. He has sought to account for the
impact of political distance/difference between countries on international
business and examined different levels and types of political risk and how
risk contributes to differing firm strategies and structures (Kobrin, 1977,
and 1978). More recently, Kobrin has turned his attention to changes in
global governance and nonmarket activity, and has called attention to the
potential fracturing of the global governance systems and the emergence of
alternative actors and approaches (1998a, 1998b, 2004, and 2009). Building
on this work, this issue will focus on the complex interactions of economic
liberalization, the role and responsibilities of international
institutions, and global firm strategy. In particular, we encourage papers
that examine how the changing role of international institutions like the
IMF, World Bank and WTO is influencing firms’ nonmarket strategies. We also
encourage submissions that explore the emergence of substitute
institutional arrangements such as private regulations, codes and other
forms of “soft” regulation, and how these complementary forms of global
governance are influencing how firms develop and advance their social and
political strategies. In addition to submissions that explore how Western
MNEs are responding to this new global governance architecture, we also
encourage submissions that explore the evolution of emerging market firms
as corporate actors at the international level, especially as they
increasingly interact with foreign governments, global institutions, and
private regulation.


We seek conceptual, theoretical, empirical and review papers that address
this broad topic. While the focus of the special issue is intentionally
broad and integrative, below are potential topics and questions that could
be relevant to the call, although they are certainly not exhaustive.

·        How has the nature, influence and effectiveness of global
governance systems evolved in the post-World War Two period? What does this
mean for the study of IB generally, and MNE nonmarket strategies in

·        Does the changing and evolving nature of global governance
mechanisms call for the development of a theory of transnational corporate
political and/or social activity? If so, what theory or theories could
inform this phenomenon?

·        What is the relationship between levels of governance (regional,
multilateral) and nonmarket (political and social) strategy?

·        What is the impact on MNE nonmarket strategy of global private
regulation and codes of conduct such as the UN Global Compact, Global
Reporting Initiative, ISO 1400 and 2100? Are these new forms of regulations
substitutes or complements to traditional international law and regulation?

·        How has the emergence of individual nongovernmental organizations
(e.g. Greenpeace, WWF, Amnesty; Oxfam) and collectives of NGOs and
associations of NGOs and firms influenced how firms direct their nonmarket
strategies? Are firms refocusing their energies on these new actors and
downplaying traditional global institutions?

·        How do the nonmarket (political and social) strategies of emerging
market firms, especially those directed at supranational institutions,
compare to those of firms from developed countries?

·        How can corporate interests be aligned across national boundaries,
societies and cultures such as they continue to support global institutions
(IMF, World Bank, WTO and so on) while also recognizing the changing nature
of global governance?


Papers that respond to this call should be forwarded to:
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by September 1, 2013. Inquiries about the special issue may be made to any
of the special issue co-editors listed above. All submissions should follow
the JWB author and style requirements, which are available at:

Submissions will be double blind reviewed according to JWB procedures.
Below is a rough timeline for consideration of papers and publication of
the special issue. A workshop at which promising submissions will be
presented and discussed is planned for January 27 and 28, 2014, at the
London School of Economics. Professor Steve Kobrin of the Wharton School of
Business will be the keynote presenter. Additional details will be provided
once submissions are received and reviewed.

*Key Dates*

*September 1, 2013:*         Submissions due to co-editors at email address
*Fall 2013:*                          First round decisions
*January 27 – 28, 2014:*    Workshop, LSE, London, UK
*March 1, 2014:*                 Revisions due
*June 1, 2014:                   *Second round decisions
*September 1, 2014:         *Third round decisions/Final papers due and
decision letter issued
*2014/2015:*                        Special issue published


Angell, N. (1910).*The Great Illusion: A study of the relation of military
power in nations to their economic and social advantage*.  New York/London:

Baron, D.P. (1997). Integrated strategy, trade policy, and global
competition. *California Management Review 39*: 145-169.

Boddewyn J., & Doh, J. (2011). Global strategy and the collaboration of
MNEs, NGOs, and governments for the provisioning of collective goods in
emerging markets. *Global Strategy Journal,* *1*: 345-361

Boddewyn, J.J., & Brewer, T.L. (1994). International Business Political
Behavior: New Theoretical Directions. *Academy of Management Review,* *19*:

Fagre, N., & Wells, L.T. (1982). Bargaining power of multinationals and
host governments. *Journal of International Business Studies,* *13*: 9-23

Henisz, W.J. (2000). The institutional environment for multinational
investment. *Journal of Law Economics & Organization,* *16*: 334-364

Kobrin, S. J. (1978). When does political instability result in increased
investment risk?*The Columbia Journal of World Business*, 14: 113-122

Kobrin, S.J. (1979). Political risk : A review and reconsideration. *Journal
of International Business Studies*, *10*: 67-80.

Kobrin, S.J. (1987). Testing the bargaining hypothesis in the manufacturing
sector in developing countries. *International Organization 41*: 609-638.

Kobrin, S.J. (1998a). Back to the future: Neomedievalism and the postmodern
digital world economy.  *Journal of International Affairs*, *51*: 361–86.

Kobrin, S J. (1998b).  The MAI and the clash of globalizations. *Foreign
Policy*, Fall, 97-109.

Kobrin, S.J. (2004). Safe harbours are hard to find: the Trans-Atlantic
data privacy dispute, territorial jurisdiction and global governance.  *Review
of International Studies,* *30*: 111-131.

Kobrin, S J.  (2009). Private political authority and public
responsibility: transnational politics, transnational firms and human
rights, *Business Ethics Quarterly, 19*: 349-374.

Kostova, T., & Roth, K. (2002). Adoption of an organizational practice by
subsidiaries of multinational corporations: Institutional and relational
effects. *Academy of Management Journal* *45*: 215-233

Lucea, R. (2010). How we see them versus how they see themselves: A
cognitive perspective of firm-NGO relationships. *Business & Society*, 49:

McGuire, S (2012). What Happened to the Influence of Business? Corporations
and organized labour in the WTO. In Narlikar, A, Staunton, M. & Stern, R.
(eds) *The Oxford Handbook on the World Trade Organization*, (pp. 320-339),
Oxford, UK: Oxford University Press.

Prakash, A. (2002). Beyond Seattle: globalization, the nonmarket
environment and corporate strategy. *Review of International Political
Economy,* *9*: 513-537

Ramamurti, R. (2001). The obsolescing “bargaining model”? MNC-host
developing country relations revisited, *Journal of International Business
Studies, 32:* 23-39.

Teegen, H., Doh, J.P., & Vachani, S. (2004). The importance of
nongovernmental organizations (NGOs) in global governance and value
creation: an international business research agenda. *Journal of
International Business Studies,* *35*: 463-483

Vernon R. (1971). *Sovereignty at Bay:The multinational spread of U.S.
enterprises*. New York: Basic Books.

Toshiya Ozaki, PhD
Professor of International Business
College of Business, Rikkyo University
Tokyo, Japan 171-8501
Tel: +81-3-3985-4077

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