A general theory of de-internationalization

Abstract

De-internationalization is a novel phenomenon that is gaining significant attention because of its proliferation in international business. However, unlike internationalization, literature on de-internationalization remains opaque and scarce, whereby the acts that characterize de-internationalization and the characters of those acts have remain largely underexplored. To address this knowledge gap and contribute to the body of knowledge on international business, this article aims to shed light on the acts and characters of acts defining de-internationalization. To do so, this article adopts a taxonomic method to conceptual development. In doing so, this article explains that (1) the act of de-internationalization can manifest as a firm's decision to adapt and stay or withdraw and exit an international market (what is happening), which can occur through (2) decoupling or psychic distance (how it is happening) due to (3) a means-ends or a needs-ends reason (why it is happening), respectively. Taken collectively, this article makes a seminal contribution by establishing a general theory of de-internationalization.