Neointernationalization of B2B Firms: Recognizing and Accommodating Disruption to Traditional Internationalization Trajectories

Neointernationalization of B2B Firms: Recognizing and Accommodating Disruption to Traditional Internationalization Trajectories open_in_new

Special issue information:

Overview and purpose of the special issue

The global economic order established following World War II has encountered major disruptions and undergone substantial structural reconfiguration (Petricevic and Teece, 2019). Against this backdrop, the global landscape dynamics have been extensively fractured with the effects of several recent circumstances leading to fundamental shifts in the traditional internationalization trajectories such as: (a) global pandemic, resulting in more nationalistic and protectionist policies and institutional adjustments to preserve employment and the financial interests of home markets (Cuervo-Cazurra et al., 2020; Delios, Perchthold, and Capri, 2021); (b) heightened geopolitical tensions, driving organizations to fuel decoupling efforts between specific regions, notably exemplified by the strained relations between China and the United States (Contractor, 2022; Witt et al., 2023), and (c) the retreat of globalization, giving rise to a more regionally fragmented world economy stemming from the escalation of uncertainty, and increased expenses in international transactions (Ciravegna and Michailova, 2023); and, (d) global degrowth, to stabilize the global economy by recalibrating growth opportunities from high-income countries toward low- and middle-income countries where growth opportunities remain (Hickel et al., 2022).

That said, these developments are profoundly influencing the fabric of the business landscape. With the trajectory of the world economy’s globalization becoming increasingly uncertain, business to business (B2B) enterprises operating beyond their national boundaries are under pressure to recognize and accommodate these disruptions by reconsidering their ‘global’ value chains (GVCs) and reassessing their traditional internationalization pathways (Petricevic and Teece, 2019). In this regard, this call for papers invites scholars to integrate geopolitical frictions with business views, intending to guide B2B firms navigating in these highly uncertain and disruptive business landscape considering new realities and trajectories of internationalization. Albeit the fact that previous research considering these disruptions and uncertainties extensively as a threat (e.g., Luo and Van Assche, 2023; Vertinsky et al., 2023), it should not be undervalued how resilient and adaptive organizations can be (Contractor, 2022; Zamborsky et al., 2023). Therefore, it remains unclear how B2B firms should adapt and how globalization might carry on under these conditions of neointernationalization.

These disruptions and uncertainties in the geopolitical sphere could also result in viable alternatives for B2B firms by considering new areas of opportunities, encompassing offshoring, reshoring, nearshoring, friendshoring, and safe-shoring. In the last two decades, the globalization’s influence on the global competitive landscape largely produced a pronounced trend towards outsourcing and overseas production, especially in the realms of manufacturing and sourcing (Gereffi, Lim, and Lee, 2018). In line with this, a multitude of organizations have been actively engaged in offshoring practices which involve the relocation of various value chain activities to foreign locations over the past few decades, as they have heavily attempted to benefit from the availability of cheaper raw materials, lower labour costs, and less stringent regulatory environments (Merino, Di Stefano and Fratocchi, 2021; Mukherjee, Kumar, Pandey, and Lahiri, 2023). Nevertheless, global value chain disruptions and radical shifts in the attractiveness of the specific locations have pushed companies reconsider their offshored manufacturing locations, which results in decisions relating to reversing their prior manufacturing offshoring decisions and bringing their activities back home (Barbieri et al., 2022; Ellram, Tate, and Petersen, 2013).

In the contemporary globalized context, the singular emphasis on cost as a primary determinant in decision-making processes related to internationalization has been supplanted (Mukherjee et al., 2019). This shift is attributed to the growing recognition among organizations of the multifaceted nature of their reputations, encompassing ethical and sustainability considerations, as well as other strategic imperatives (Ellram, 2013; Kafouros et al., 2022). Furthermore, firm-specific factors, such as strategic priorities and customer responsiveness, exert a significant influence on this decision-making process (McIvor and Bals, 2021). Consequently, the concept of nearshoring, referring to the relocation of the value chain activities to a nearby location to the home market, has gained attraction by addressing sustainability and ethical concerns associated with offshore production (Ellram et al., 2013; Gray et al., 2013).

The burgeoning concept of friendshoring presents a novel perspective on the globalization paradigm, suggesting a nuanced equilibrium between globalization and de-globalization, as some multinational enterprises (MNEs) prefer to maintain neutrality by not aligning with any particular side amidst geopolitical tensions and instead, are relocating to regions perceived as ‘friendly’ or ‘neutral’, such as Southeast Asia, South Asia, Africa, Latin America, the Middle East, and Eastern Europe (Bilgili et al., 2023; Zamborsky et al., 2023).

Despite the fact that friendshoring and decoupling have a more expansive global presence, yet they are commonly feasible merely in the regions characterized by minimal perceived risk, potentially compromising agility. At that point, another nascent topic of safe-shoring, may conversely addresses this inherent trade-off by emphasizing the importance of agility and resilience through maintaining a flexible approach and leveraging the advantages of low factor costs in areas characterized by economic volatility as they are able to quickly move globally in reaction to risk events (Kutschera et al., 2023).

Sample topics

We are calling for scholarly contributions that can illuminate the challenges and opportunities inherent in the evolving landscape of globalization, thereby enhancing our comprehensive understanding of the future trajectory of the internationalization arena, which may encompass novel practices such as offshoring, reshoring, nearshoring, friendshoring, and safe-shoring.

This special issue invites submissions of both conceptual and empirical manuscripts, employing diverse methodologies such as quantitative, qualitative, case studies, or triangulation of methods. We encourage multidisciplinary approaches. All manuscripts should be directly relevant to the recognition and accommodation of the disruptions to traditional internationalization trajectories that we are characterizing as neointernationalization.

Potential research questions for submission to this special issue include, but are not limited to, the following:

  • Does traditional internationalization theory, such as the OLI framework and the Uppsala model, adequately address the neointernationalization of B2B firms?
  • What new paradigms should be developed to recognize and accommodate the disruptions to traditional internationalization trajectories in industrial markets?
  • What are the determinants that influence the international relocation decisions of business-to-business firms (B2B)?
  • What are the key factors that determine the success or failure of industrial firms in adapting to the changing landscape of globalization and internationalization?
  • How can B2B firms originating from emerging economies compete with geopolitical frictions in their internationalization operations?
  • Which countries or regions are anticipated to come to the forefront of new internationalization trajectories, particularly for nearshoring or friendshoring practices of industrial firms?
  • How may top management team characteristics of industrial firms affect decisions related to new internationalization trajectories from the upper echelons’ perspective?
  • To what extent do the disparities in institutional environments between the home and host countries influence relocation decisions of B2B firms?
  • How will different industries (i.e., primary, secondary, tertiary industries etc.) be affected by the emerging trends resulting from the disruptions of traditional internationalization trajectories?
  • How might the evolving digital landscape influence the strategic decisions of industrial firms regarding the offshoring and reshoring of their operations?
  • How do B2B firms leverage technology and digitalization to mitigate the impact of geopolitical frictions on their operations?
  • What resources or capabilities do industrial firms require to effectively address the disruptions of traditional internationalization pathways?
  • What are the key factors that determine the resilience and adaptability of B2B firms in the face of geopolitical frictions, particularly for safe-shoring?
  • What are the trade-off mechanisms that exist between globalization, deglobalization, and sustainability practices in industrial markets?
  • How do industrial firms assess and manage the risks associated with geopolitical frictions, and how do these risks impact their decision-making processes?
  • What roles do network ties play in shaping decisions of B2B firms related to nearshoring or friendshoring?

Guest editors

Important dates

  • Submission opens: March 1, 2025

  • Deadline for submission: May 1, 2025