Bringing History (Back) into International Business

G.  Jones; Tarun   Khanna

Article | Journal of International Business Studies | July 2006

Bringing History (Back) into International Business

Abstract

We argue that the field of international business should evolve its rhetoric from the relatively uncontroversial idea that 'history matters' to exploring how it matters. We discuss four conceptual channels through which history matters, illustrating each with a major example. First, historical variation is at least a worthy complement to contemporary cross-sectional variation in illuminating conceptual issues. As an example, we show that conclusions reached by the literature on contemporary emerging market business groups are remarkably similar to independently reached conclusions about a very similar organizational form that was ubiquitous in the age of empire. Second, historical evidence avoids spurious labeling of some phenomena as 'new', and by so doing may challenge current explanations of their determinants. Whereas some firm types today were also present earlier, some types have disappeared, some have appeared, and some have disappeared and reappeared later. Third, history can allow us to move beyond the oft-recognized importance of issues of path dependence to explore the roots of Penrosian resources. We argue that the choices made by Jardine's and Swire's in Asia today, for example, are an outgrowth of strategic choices first in evidence more than a century ago. These would remain obscured absent an historical analysis. Fourth, there are certain issues that are unaddressable, except in the really long (that is, historical) run. Exploring the causal relationship (if any) between foreign direct investment, a staple of the international business literature, and long-run economic development provides one important example. Throughout, we advocate embracing rigorous methods for analyzing small-sample and qualitative data when conventional regression techniques do not apply. That is, we suggest that re-embracing history in the mainstream is not tantamount to sacrificing methodological rigor.

Format: Print

16 pages

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Jones, G., and Tarun Khanna. "Bringing History (Back) into International Business." Journal of International Business Studies 37, no. 4 (July 2006): 453–468.

While there is evidence about labor market discrimination based on race, religion, and gender, we know little about whether physical appearance leads to discrimination in labor market outcomes. We deploy a randomized experiment on 1,000 respondents in India between April and May 2020 to investigate how “looks” affect labor market outcomes. Using machine learning and computer face rendering techniques, we simulate North, South, and Northeastern Indian faces and randomize two waves of treatments where we attach faces with otherwise identical CVs. However, the second wave also contains a vignette where we provide respondents with information about the incidence of discrimination. We focus on Northeastern Indian faces that resemble those in China to focus on the potential for discrimination that has historically been present in anecdotal accounts. While we do not find evidence of discrimination against Northeastern faces in the first wave, we do so in the second among those who do not see the vignette. We provide suggestive evidence that these results are consistent with the presence of homophily under limited attention.

Pallak Seth, Group CEO of PDS Multinational Fashions, is contemplating options to bring better collaboration across his global apparel supply chain platform. PDS, a group of 50-plus subsidiary companies, each led by its own CEO and with different apparel industry specialties, has grown rapidly over the past decade, yet the industry is increasingly competitive and challenges remain constant. Looking for ways to reach the Group’s 2023 goals of $2 billion in revenue, Seth and his executive board are considering two ways to increase collaboration and reward performance: a joint P&L approach to drive partnerships across the subsidiaries and an employee stock option plan, to unlock value across the Group.

Article | Journal of Medical Internet Research | September 2020

Regulatory Sandboxes: A Cure for mHealth Pilotitis?

Abhishek Bhatia, Rahul Matthan LLM, Tarun Khanna and Satchit Balsari

Mobile health (mHealth) and related digital health interventions in the past decade have not always scaled globally as anticipated earlier despite large investments by governments and philanthropic foundations. The implementation of digital health tools has suffered from 2 limitations: (1) the interventions commonly ignore the “law of amplification” that states that technology is most likely to succeed when it seeks to augment and not alter human behavior; and (2) end-user needs and clinical gaps are often poorly understood while designing solutions, contributing to a substantial decrease in usage, referred to as the “law of attrition” in eHealth. The COVID-19 pandemic has addressed the first of the 2 problems—technology solutions, such as telemedicine, that were struggling to find traction are now closely aligned with health-seeking behavior. The second problem (poorly designed solutions) persists, as demonstrated by a plethora of poorly designed epidemic prediction tools and digital contact-tracing apps, which were deployed at scale, around the world, with little validation. The pandemic has accelerated the Indian state’s desire to build the nation’s digital health ecosystem. We call for the inclusion of regulatory sandboxes, as successfully done in the fintech sector, to provide a real-world testing environment for mHealth solutions before deploying them at scale.

Citation:

Bhatia, Abhishek, Rahul Matthan LLM, Tarun Khanna, and Satchit Balsari. "Regulatory Sandboxes: A Cure for mHealth Pilotitis?" Journal of Medical Internet Research 22, no. 9 (September 2020). View Details

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Bringing History (Back) into International Business

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