Purpose – This commentary aims to discuss methodological issues and practical concerns of international business scholars who apply the gravity equation in their research. Design/methodology/approach – The paper summarizes and compares theories and several advanced empirical specifications...

Purpose – The purpose of this paper is to provide a critical discussion of the scope and correct scale metrics used in the measurement of multinationality. Design/methodology/approach – There are two ways of measuring the degree of multinationality (sometimes called the international...

This study analyzes the relationship between multinationality and performance of 1,247 US multinational enterprises (MNEs) over the period of 1995‐2004 by utilizing Tobin’s q theory. Internationalization is a double‐edged sword: foreign intangible assets create a firm’s value, while, at...

Purpose: The purpose of this study is to examine how foreign firms consider natural disaster risk in subsequent investment decisions in a host country and whether different location portfolios can serve to mitigate investment risk. Design/methodology/approach: The author sample includes data on...

Purpose The aim of this paper first is to go beyond the static effects of bilateral investment treaties (BITs) and empirically estimate the marginal effects of the stock of BITs on foreign direct investment flows. Design/methodology/approach These statistical models use a gravity equation....

Purpose: This study aims to advance an international political economy (IPE) perspective that geo-political events can have long-lasting imprint effects on countries and their firms. The study also aims to explore the idea that shared political history and geography combine to create specific...

Purpose The purpose of this paper is to examine two prominent perspectives on business group functioning, institutional void (IV) and entrenchment/exploitation (EE), that make different predictions about the effect of business group (BG) on the economy. The authors examine the effects of BG...