From the editor: International business policy: What it is, and what it is not

Abstract

Institutions shape behavior, but it is policy that changes behavior. When public policy is applied, governments effect institutional change. This editorial is about the distinction between policies and institutions and the research opportunities it provides for authors. Institutional theory is known for its weak ability to provide a predictive model of firm behavior in a comparative static setting. Theoretically and empirically isolating the causal mechanisms involved in institutional change is thus a natural challenge that comes to a head in international business policy research. Adding to this, policy responses are not slavish: firms actively engage in institutional work and corporate political lobbying in order to change formal institutions and affect future policy. To contribute to these research areas, scholars need to design-in policy questions from the outset of their research projects and make certain to include the two essential elements of international business policy: intent by policy makers and suitable institutions to implement change in firm behavior. Analyses of policy antecedents, firm influence upon policy, policy implementation, policy uptake, and impact are all fruitful areas of enquiry. Meeting these requirements will ensure that a study passes the relevance-to-policy test.