This review analyzes recent trends in the international management (IM) literature from 1996 to 2000. The 271 articles located in 20 top management (and management related) journals are categorized into 12 distinct topics: (1) the global business environment; (2) internationalization; (3) entry mode decisions; (4) international joint ventures; (5) foreign direct investment (FDI); (6) international exchange; (7) transfer of knowledge; (8) strategic alliances and networks; (9) multinational enterprises; (10) subsidiary-headquarters relations; (11) subsidiary and multinational team management; and (12) expatriate management. Research in each of these areas is presented and linkages between the areas are reviewed. Concluding thoughts are offered relating to the pervasiveness, methodologies, and levels of analysis of IM research, as well as potential areas for future research.

How universal are resource-based advantages? In this study, the authors suggest that differences in nations' institutional environments may influence the applicability of resource-based advantages; for this reason, the effectiveness of such advantages may vary cross-nationally. They hypothesize and find that adding the moderating influence of national institutional environment to a resource-based perspective better explains strategic decisions (entry mode choice) in an international context than does a mere resource-based approach. The analysis also shows that decisions predicted by a model incorporating both perspectives yield better subsidiary performance. Thus, results suggest that, at least in an international setting, resource-based advantages appear to be context specific. Based on these results, the authors conclude that considering country-specific contextual influences on the value of resource-based advantages allows firms to make strategic decisions that improve international subsidiary performance.

In response to the ongoing concern regarding a science-practice gap, we propose a customer-centric approach to reporting significant research results that involves a sequence of three interdependent steps. The first step involves setting an alpha level (i.e., a priori Type I error rate) that considers the relative seriousness of falsely rejecting a null hypothesis of no effect or relationship (i.e., Type I error) relative to not detecting an existing effect or relationship (i.e., Type II error) and reporting the actual observed p value (i.e., probability that the data would be obtained if the null hypothesis is true). The second step involves reporting estimates of the size of the effect or relationship, which indicate the extent to which an outcome is explained or predicted. The third step includes reporting results of a qualitative study to gather evidence regarding the practical significance of the effect or relationship. Our proposal to report research results with rigor, relevance, and practical impact involves important changes in how we report research results with the goal to bridge the science-practice gap.

According to transaction cost theory, firms select the international mode of entry that provides the most efficient form of governance. However, previous scholarship largely neglects the impact of transaction cost variables on entry mode choice and firm performance. In this study, we add transaction cost variables to a set of variables previously used to predict firm mode choice and performance. We theorize and find that firms selecting these 'transaction cost-enhanced international entry modes' perform better than firms using other modes of entry. Based on our results, we conclude that 'enhanced' transaction cost theory appears to be normative as well as descriptive with respect to international entry mode decisions.

Recent scholarship suggests that combining insights from real option theory with transaction cost economics may improve decision-making models. In response to this suggestion we develop and test a model of international entry mode choice that draws from both perspectives. Examining samples of Dutch and Greek firms entering Central and Eastern European markets, we found that adding real option variables to a transaction cost model significantly improved its explanatory power. Additionally, firms that used the combined real option/transaction cost predicted choices had significantly higher levels of subsidiary performance satisfaction than firms that did not. Our results suggest that effective managerial decision-making may involve more than mere transaction cost minimization considerations; real option value creation insights also appear to influence the success of decision outcomes. Copyright (c) Blackwell Publishing Ltd 2007.